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Officials checking for tools to control Excessive Rent increase in Turkey

Posted by david on 26 November 2021
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The Treasury and Finance Ministry is studying a proposal to introduce a scheme that will allow companies to build homes and rent them out to increase the property supply and curb the excessive rent increases. 

The lawmakers from the AKP party received multiple complaints from different institutes regarding extreme rent hikes across Turkey during the summer months, especially in the provinces with a big student population.

The officials mentioned that it is not possible to intervene and regulate house rents. However it is possible to allow private construction companies to build homes and rent them out in combination with some tax exemptions.

The Housing Development Administration of Turkey, also known as TOKİ will be added to the scheme. Normally TOKİ is building properties in order to sell them, but they can construct properties for rent out purposes as well. If the companies will be offered certain tax incentives, the units will be more affordable.

Because of the dramatically increased rent prices, tenants in Istanbul, Ankara and the largest province of Turkey – Izmir, started to make their voices heard. Opposition parties are calling for actions as well.  

Rental prices skyrocketed nearly 60 percent in some districts of Istanbul. A lot of experts mention that there is not enough supply on the metropolis city. Reopening universities and demand from foreign nationals affect the rental prices as well. The rental prices for properties in Izmir are rising as well.

Seasonal rental properties in Cesme are increasingly popular since the pandemic and a increase of 40% is shown for rental real estate in Cesme and other areas or Izmir. 

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