Home prices, rents skyrocket in Turkey amid economic turmoil

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. While increasing construction costs and inflation have pushed up housing prices globally, Turkey’s property crisis has been exacerbated by President Recep Tayyip Erdogan’s unorthodox policy of lowering interest rates despite high inflation — the opposite of traditional economic thinking. “It’s the first time we are experiencing such a thing, that we are seeing prices rise so much,” real estate agent Kenan Altinay said. “Each year, we’d see difference of 20% or 25%, but this year, it has reached 200%.” In a bid to keep prices in check, the government has imposed a 25% cap on rent increases, but few landlords adhere to the rule as they try to keep their earnings on par with inflation. “Either our rent will increase by threefold or will put the house up for sale.” She said the cost of rent, food and clothing has risen by two- or threefold and that white-collar workers like her haven’t received salary increases that keep pace with rising prices.