Rents surge over 16pc in istanbul

Photo: King Brian

Rental rates for property in Istanbul have surged over 16 per cent in the last year, according to new figures.

The latest Reidin Turkey composite data shows that rental prices across Turkey jumped 12.52 per cent in March 2014 year-on-year, but in Istanbul that leap was even higher: 16.08 per cent.

As properties become more expensive in the central districts of Istanbul, 

Average incomes in Turkey are still around €1,000 a month so many people who are priced out of buying in Istanbul are more likely to look for properties to rent, say analysts at property consultants Universal21.

Adil Yaman, Director of Universal21 comments: “Rental property in Istanbul is in big demand. If you compare Istanbul's 16 per cent annual rise in rents with the 4 per cent seen in London over the same period, it shows that investors can achieve a far higher return on investment. Rental returns in Istanbul have been high for the past 3-4 years in Istanbul as pressure has been put on available housing stock.”

Universal21 advises investors to look for property in districts such as Beylikduzu for the best rental returns. Unlike expensive areas such as Besiktas, outlying districts offer a combination of high demand and rising populations of city workers looking for rental property in the city.

“It is also more likely that furnished apartments will rent better than unfurnished in Istanbul” adds Yaman.