Turkey, facing the aftermath of a devastating earthquake, imposed a 25% cap on property rent increases, spurring tensions. Landlords, aiming to sidestep the cap, resorted to illegal means, resulting in 47,000 eviction cases and 100,000 instances of unauthorized rent hikes in the first half of 2023—double the figures from the same period in 2022. Turkey's housing market, ranked as the least affordable globally, has witnessed a surge in rental rates, up by an average of 121% in the past year, leading to violent conflicts and raising concerns about housing affordability and social stability.
Following a devastating earthquake in Turkey, the government imposed a 25% cap on property rent increases for households, aligning business rents with the official inflation rate. However, this move has intensified tensions, prompting landlords to resort to illegal means to evict tenants and find those willing to pay higher rents.
In the first six months of the year, there were around 47,000 eviction cases and 100,000 cases involving illegal rent increases, more than double the numbers from the same period in 2022. This situation reflects the challenges and conflicts arising from soaring rent prices and housing affordability in Turkey.
According to MoneyTransfers.com, Turkey has been identified as the least affordable housing market globally, with a house price to income ratio of 197%. In contrast, Brazil was found to be the most affordable, with a house price to income ratio of 66%.
The house price to income ratio is a measure of housing affordability, calculated by dividing nominal house prices by nominal disposable income per capita, using 2015 as the base year when the index was set at 100. A ratio of 120 would indicate that house prices have exceeded income by 20% since 2015.
In Turkey, the steep increase in rent prices over the past year has resulted in violent conflicts between landlords and tenants, resulting in 11 reported deaths and 46 injuries. Rental rates have surged by an average of 121% in the past year, and in major cities like Ankara and Istanbul, they have even risen by as much as 188%.
This escalation is attributed to multiple factors, including a high cost of living, significant inflation, and an influx of displaced individuals following a devastating earthquake. Following February’s earthquake, the Turkish government implemented a 25% limit on property rent hikes for households. For businesses, rent increases were linked to the official inflation rate.
Nonetheless, according to experts, these measures have intensified tensions, leading many landlords to resort to various methods, including illegal ones, to remove existing tenants and replace them with new ones willing to pay higher rents.
Turkish media reports indicate that in the first six months of this year, approximately 47,000 eviction cases and 100,000 cases related to unauthorized rent increases were initiated, more than double the figures from the same period in 2022.
In the aftermath of a devastating earthquake in Turkey, the government's decision to impose a 25% cap on property rent increases has inadvertently triggered a surge in tensions. The first half of this year witnessed an alarming rise in eviction cases and instances of unauthorized rent increases, exceeding the figures from the corresponding period in 2022. This troubling scenario underscores the broader challenges and conflicts stemming from soaring rent prices and housing unaffordability in Turkey.
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