With the rise of platforms like Airbnb, the short-term rental market in Istanbul has been growing rapidly.  According to Airbnb statistics, a typical listing recorded a 55% average occupancy rate between 2023-08 - 2024-07.  And about 79.49% of the guests are international guests, and visitors from Turkiye is the largest group (Source : Airbnb Statistics ). The most popular areas for short-let remains to be the most central and historical touristic locations such as Sultanahmet, Galata, Taksim, Beyoglu, Kadikoy and Bosphorus Strait. 

There are several factors behind the booming short-let market of Istanbul; 

Istanbul's rich history, diverse culture, and stunning architecture attract millions of tourists annually which is the top driver of the booming short-let market.  Moreover, many professionals prefer short-term rentals for their business trips which offers more space and amenities than traditional hotels and Istanbul became a major business and travelling hub with the new massive Istanbul airport.  Also the city becoming more and more popular amongst the digital nomads who seek flexible accommodation options, looking for affordable cost of living, fast internet, and vibrant atmosphere.

On the other hand, the rental market in Istanbul offers a wide variety of housing options, from traditional apartments and houses to modern flats.  And most of the properties in the market does not comply with the law and not suitable for short-let running. Authorities have increased efforts to regulate short-term rentals to address housing shortages and rising long-term rental prices, the strict restrictions on short-let has already impacted and will determine the availability of short-let properties in the future. The restrictions became more strict and can bear high risks such as huge penalties for lanlords who are doing short-let rentals without meeting the certain requirements by the law.  On the other hand, increasing competition especially in popular areas which requires more efffective marketing and property management is another challenge for home owners. 

Overall, Istanbul's short-let market offers a promising investment opportunity for those who understand the market dynamics and are willing to act in line witht he regulatory factors.