The increase in rental housing prices in Istanbul exceeding 50% in the last year, “Will the rents decrease?” brought the question. Remax Conclusion Bagdat Street Real Estate Consultant Mustafa Kemal Işık said, “The rental housing prices, which increased due to the decrease in new housing production, rising housing prices and interest rates in a year, peaked with the start of returning to school in universities. We do not expect prices to drop. On the contrary, the increasing trend will continue, albeit not at the same pace.”
Rental house prices, which increased due to the slowdown in the construction sector and rising interest rates during the pandemic, gained momentum with the return of university students to school. While the stock of rental houses was struggling to meet the increasing demand, there were surprising increases in prices in the last 1 month, especially in Istanbul. According to the research prepared by Bahçeşehir University Center for Economic and Social Research (BETAM) based on the data of the real estate marketing platform, there was a 50,7% increase in rental prices in Istanbul compared to last year. Rental prices increased by 1% in the last month. While the average rent of a 8,4 square meter house was around 2020 TL in August of 100, this figure increased to 2.100 TL in 1 year. Stating that the search for a house by university students has been effective in the last month of mobility, Remax Conclusion Bağdat Caddesi Real Estate Consultant Mustafa Kemal Işık said, “After the decision of universities to start face-to-face education, students and their families started to search for a house. Although student dormitories are seen as the first alternative, the reasons such as the fact that the dormitories are located far from the school and do not offer the expected service in terms of price-performance turned the demand into rental housing. The health sensitivity created by the pandemic also played a decisive role in the choice.”
Foreign investor demand increased prices
Noting that the granting of citizenship rights to foreigners in return for an investment of 250 thousand dollars in the housing sector indirectly affected the increase in prices, Işık said, “House sales to foreigners increased by 50,7% in August compared to the same period of the previous year and reached 5 thousand 866 thousand. While foreign investors' tendency to houses for sale in order to obtain citizenship increases house prices, rental houses are also indirectly affected by this situation. Especially, Kadıköy There is a great demand for areas with modern structures such as Bağdat Street, where the standard of living is high, and rent increases are at very high levels," he said.
Irregular migration wave effect
Pointing out that the irregular migration wave that Turkey is exposed to also affects the rental housing market, Işık said, “Turkey is a country that is exposed to intense migration at certain periods. It is estimated that more than 500 thousand Syrian refugees currently live in Istanbul. In addition to Syrian immigrants, a wave of immigrants also comes from countries such as Lebanon, Iran, Iraq and Afghanistan. The need for shelter of asylum seekers and immigrants from these regions changes the supply-demand balance in the market.
The need for a safe port
Pointing out that the rental real estate market is going through a difficult process for both home seekers and homeowners, Işık said, “Both sides need a reliable port. Those who are looking for a house and those who want to rent their house should get support from real estate consultants who can keep an equal distance from both parties and have professional qualification certificate and related certificates.