Rents outpace home prices: rising rapidly!

Housing prices continue to rise despite high interest rates. However, this increase remains below inflation.

According to a report by the Bahçeşehir University Center for Economic and Social Research, the annual increase in September was 21.6 percent.

When this figure is adjusted for inflation, it represents an 18.6 percent real decline in prices.

The situation for homes for sale is not fully reflected in rental properties. The increase in rents is much higher than that of homes for sale.

The rate of increase stood at 45.2 percent in September. In the same month, annual inflation was 49.38 percent.

In other words, the increase in rents is moving almost in line with inflation. Among major cities, İzmir in particular stands out in terms of rent increases.

Rents recorded an increase of 46.2 percent in Istanbul, 51.3 percent in Ankara, and 56.3 percent in İzmir.

The Central Bank drew attention to rent increases in its inflation assessment published two weeks ago.

The report stated, "Following the removal of the 25 percent rent cap, monthly rent inflation maintained its strong trend due to the high rate of contract renewals."

News Source: 12punto