The rising cost of living and soaring inflation continue to exert pressure on rental prices, further inflating the rental bubble.
The President of the Izmir Real Estate Club, Ridvan Akgun, has issued a stark warning, predicting a 50% increase in rental prices in the first half of 2025.
Inflation-linked rent hikes could reach 50% by mid-2025
Following a 25% hike earlier this year, rents could see an inflation-adjusted increase of up to 50% in the first half of next year. According to ANKA News, Akgun stated, “Based on statements from the Ministry of Treasury and Finance, rental prices could rise by at least 50% by next summer.”
Akgun highlighted that many people are struggling to find affordable housing, adding, “In recent years, many have resorted to buying shares in cooperative projects and living in container homes. The number of people living in caravans has also surged.” He pointed out that the construction industry is facing significant challenges, saying, “There are contractors who can no longer build homes. Major construction firms are nearing bankruptcy, and consortiums are struggling. High costs have depleted the existing supply, driving prices up.”
Winter offers stability: Renters advised to act fast
Akgun emphasized that the winter months offer a more favorable period for renters, noting, “During the winter, there is less activity, which allows for the creation of supply and stock. This can help stabilize prices. However, from April onwards, prices typically rise by 20-30% in May and June, with a similar increase in August and September. Therefore, those considering renting a property should act swiftly.”
As Türkiye faces a significant rise in rental prices, with predictions of a staggering 50% increase by 2025, the rental crisis is set to intensify due to ongoing inflation and high living costs. Warnings from experts highlight the urgent need for action among renters, particularly as the winter months present a rare opportunity for stability in the housing market. Those looking to secure housing should consider making their moves soon to avoid the anticipated price surges in the coming months.
