Rents in Turkey decreased due to lower demand, the depreciation of the lira, and the economic conditions that resulted from recent government policies and security concerns. A recent change in lease laws required that all contracts be signed and paid in Turkish lira (TRY) instead of USD or EUR.
For many years, the expatriate rental market in Turkey has been dominated by leases signed and paid in USD or EUR. In September of this year, President Erdogan issued a decree stating that all leases in foreign currency must be converted to Turkish lira (TRY). This move was made to stem the sharp inflation that battered Turkey’s currency in 2018, resulting in a loss of over half its value at its worst point.
The Turkish lira has had a volatile year and an especially tumultuous past week. In July, the Central Bank of Turkey alarmed investors by keeping interest rates steady even as CPI annual inflation rose to double digits.
Today, many expatriates from Western Europe and North America have stopped coming to Istanbul and to Turkey overall.