Istanbul has a dynamic and ever-evolving landscape of rental market.  Inflation, rising interest rates, population growth, and housing demand are the key drivers behind recent trends in the market;

Inflation and currency depreciation has deriven up pricess across Turkiye, effected the rental prices massively in recent years. Moreover, high interest rates have dramatically decreased the new residential home purchases, which pushes demand toward rentals, further increasing rent prices.  Istanbul, being one of the most in-demand cities, has experienced that rapid rental price growth more then most of any other cities in the across the country.

Central business districts like Şişli, Beşiktaş, and Kadıköy are in high demand due to their proximity to business hubs, shopping centers, and amenities. Rents in these areas tend to be higher than in other parts of the city.  Whereas, Üsküdar, Beykoz and Sarıyer, the areas with scenic views have also gained popularity, especially among high-income renters and expats.  Moreover, the short-term rentals which are mainly popular around historical anc central locations such as Sultanahmet and Taksim have further contributed to the shortage of long-term rental options and higher prices.

Eventhough the possibility of strong returns on investment has driven interest in the rental market, the affordability concerns among local residents have been also rising.  The introduced annual rental increase cap of 25% by the goverment which was removed in June 2024 had not also fully controlled the rising trend either.  Moreover, Istanbul’s rich culture, affordable lifestyle (relative to Western countries), and growing tech scene make it attractive for digital nomads and expatriates. Many international residents prefer renting in central and scenic areas, is an additional pressure on the market.

Over the past three years, housing unit prices in Istanbul have escalated more than 400%, with the average price per square meter reaching ₺52,000 by the third quarter of 2024. This rapid increase has significantly impacted both renters and potential homeowners, making it more challenging to find affordable housing options within the city. A recent analyses by The Turkish Statistical Institute (TurkStat) revealed that the proportion of households owning their homes dropped from 60.7% in 2022 to 56.2% in 2023.  These figures highlight the growing trend toward renting and the difficulties faced by Turkish citizens in purchasing their own homes.