Rents increased in Istanbul as demand for housing climbs and the value of the Turkish lira continues to slide against the U.S. dollar. Recently, the entire country experienced a surge in real estate purchases by both expatriates and Turkish residents.
Local housing sources explained that, since the COVID-19 outbreak, there has been a significant decline in expat demand for rental properties. However, rental demand within the local market has been very high recently, balancing out the difference. Generally, Turkey has a relatively small expat population, so the pandemic has not drastically impacted vacancies as it has in other countries.
Favorite districts among expats are becoming increasingly popular among wealthier Turkish residents, specifically Texim and Göktürk. Since the pandemic, demand has increased for properties with gardens and terraces and the current supply of these types of properties is not meeting demand. As a result, rents for upscale houses are rising.
Over the past year, the Turkish Lira has continued to depreciate, contributing to the rising real estate prices. The market has been adapting to the new figures, and rents in TRY are increasing at a more rapid rate. AIRINC will continue to monitor these developments and the impact to assignees throughout Turkey.
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