Eyes on rents amid the housing crisis: What will happen to prices in the summer? Will there be a drop in residential rents?

Rental increases across Turkey, especially in major cities, have brought millions of citizens to the brink of a housing crisis. According to the latest report by the Istanbul Planning Agency, while the monthly cost of living for a family of 4 in Istanbul alone has reached 90 thousand liras, rent constitutes the largest portion of this expenditure.

Rising housing costs and inflation make it difficult to either buy a home or find a rental property. As rents exceed the minimum wage, the need for housing has now become a fundamental problem.

Hakan Akçam, President of the All Real Estate Consultants Union (TEDB), stated in his remarks on the subject that they expect the pace of increase in rental prices to slow down during the summer months. However, emphasizing that this expectation is directly linked to inflation data, Akçam underlined that lower inflation is a prerequisite for a permanent decline.

"With the decline in inflation, a search for balance will also begin in rental prices. It is anticipated that prices will remain stable during the summer months," said Akçam, noting that while the annual rent increase rate fell to 48.2% in May, this decline has not created a noticeable relief in the market.

HOUSING SUPPLY AND SOCIAL POLICIES PLAY A KEY ROLE

According to Akçam, a drop in inflation alone will not be enough to lower rental prices. The real solution lies in re-establishing the supply-demand balance in the market. Stating that the government should focus on social housing projects, Akçam said, "If housing supply does not increase, prices will not fall. When the need for housing is met with social housing, rental prices will automatically be suppressed."

He also reminded that summer-specific mobility, such as the university placement process for students and civil servant appointments, could temporarily increase demand for rentals.

DIGITAL MEASURES AGAINST PRICE MANIPULATION

Stating that price manipulations in the sector are a serious problem, Akçam noted that new digital audit applications have been implemented against these abuses. He expressed that the aim is to protect market balance through electronic contracts and online tracking systems.

Reporting that prices for rental and for-sale homes were exorbitantly increased by 8-10% in some regions, especially after the earthquake that occurred in Istanbul on April 23, Akçam stated that the state has intervened in such practices. "The primary person responsible for raising the price is the landlord. The real estate agent sometimes only follows instructions. However, consultants who abuse the system can also be fined up to 100 thousand liras," he said.

CALL FOR REGULATION OF REAL ESTATE WEBSITES

Akçam also drew attention to price inflation on real estate listing portals. Stating that high-priced listings deliberately created through these platforms affect the market in general, the TEDB President said that regulations should be made against this situation as well.

Expressing that real estate portals remaining outside of audits distort the perception of prices, Akçam emphasized that manipulations made through listings, especially in metropolitan areas, victimize tenants.

WHAT IS EXPECTED IN THE SUMMER PERIOD?

According to the assessments of industry representatives, in the summer months:

The pace of rent increases may fall along with the slowdown in inflation data.

Prices will generally remain stable; no major jumps are expected.

Market balance may be achieved in the long term with social housing projects.

Digital audit systems and criminal sanctions will limit price manipulations.

Factors such as university placement and appointment periods may create temporary increases in demand.