Istanbul has Europe's worst rent-to-salary ratio
According to data from the Deutsche Bank Research Institute, Istanbul has become one of the rare global centers among 46 cities where salaries fail to cover rent.
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A recent report published by the Deutsche Bank Research Institute has revealed that rents in Istanbul have surpassed salaries. According to the study, the rent for a one-bedroom apartment in Istanbul's city center is 101.52% higher than the average net salary. This ratio makes Istanbul one of only six cities worldwide where salaries do not cover rent.
RENT EXPENSES EXCEED SALARY: ISTANBUL RANKS 41ST ON THE LIST
According to a report by EKOTÜRK, in a study comparing 46 global cities, Istanbul ranked 41st in terms of salary-to-rent balance. Along with Istanbul, São Paulo, Lisbon, Mexico City, Bogota, and Cairo were also among the cities where salaries are insufficient for rent. In these cities, the cost of living, particularly regarding housing expenses, creates a significant burden.
ISTANBUL HAS THE WORST INCOME-RENT BALANCE IN EUROPE
According to joint data from Eurostat and Deutsche Bank, Istanbul is one of the cities with the lowest average net salary in Europe. Against an average salary of 855 Euros, the rent for a one-bedroom apartment in the city center exceeds this amount. This situation triggers a housing crisis, especially for low-income earners and minimum wage workers.
LOWEST AND HIGHEST SALARIES IN EUROPE
Across Europe, salaries vary significantly by country. For example, while the average net salary in Geneva, Switzerland, is 7,307 Euros, this figure is only 855 Euros in Istanbul. In Zurich, the average income was calculated at 7,127 Euros. This difference directly determines the impact of housing costs on salaries.
WHAT REMAINS AFTER SALARY?
According to the research, an employee in Istanbul is left with no money after paying rent. 101.52% of the salary goes to rent, meaning a person must generate additional income to survive. There is a deficit of 13 Euros (approximately 614 TL). On the other hand, this deficit reaches up to 202 Euros (approximately 9,534 TL) in Lisbon.
LOWEST RENT RATIO IN GENEVA
Geneva stands out as the city with the lowest rent-to-salary ratio in Europe. In the city, only 29% of the salary goes to rent. It is followed by high-income cities such as Luxembourg, Zurich, Helsinki, and Frankfurt. In these cities, high salaries reduce the relative impact of rents and increase the quality of life.
RENT RATIOS IN EUROPEAN CAPITALS
In the capitals of Europe's five largest economies, the rent burden is distributed as follows: Berlin 40%, Paris 45%, London 75%, Madrid 74%, and Rome 65%.
Among the cities in the world where salaries are higher than rent and disposable income is high, Geneva and Zurich lead the way. The income remaining after rent is around 5,174 Euros in Geneva and around 4,638 Euros in Zurich.