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Housing costs in the European Union consume about one-fifth of household income, but Türkiye remains an extreme outlier in this regional crisis.
In 2025, annual rent inflation in Türkiye hit 77.6%. This percentage separates the country from 35 other nations. Montenegro recorded the second-highest increase at only 18.5%.
Kate Everett-Allen, head of European Residential Research at Knight Frank, analyzed the situation for Euronews Business.
She told Euronews Business that "Inflation (in Türkiye) is exceptionally high." Everett-Allen noted that inflation drives the majority of the nominal rent growth. High property prices and expensive credit keep families out of the buyer market. This lack of access pushes most households toward rentals.
Government policies failed to stop the surge.
Officials applied a 25% rent cap between July 2022 and July 2024. Everett-Allen suggests these controls created "unintended consequences." Landlords often demanded massive price hikes for new tenants to recover their losses. This behavior drove average market rents higher.
Mikk Kalmet from Global Property Guide explained the market psychology. He said, "Housing is often seen as a hedge against inflation and currency depreciation." Investors buy property to protect their money. This demand increases both sales prices and rental rates.
Regional data shows a stark contrast:
Main opposition Republican People's Party (CHP) MP Ahmet Vehbi Bakirlioglu recently criticized the current housing policy.
He noted that the housing price index in the EU rose 5.5% in late 2025. Türkiye saw a 30.6% increase in the same period. Bakirlioglu pointed out the growing social divide. He compared a German retiree planning a vacation to a Turkish retiree searching for a roommate.
The housing crisis has flooded the judicial system with cases.
Legal records show a massive increase in property-related lawsuits:
Domestic data highlights specific cities with extreme growth. Samsun, Elazig, and Diyarbakir reported the highest price hikes. Samsun recorded a 38% annual increase in housing prices.
These figures suggest that basic housing has become a luxury for the average citizen. Net minimum wage increased by only 27% in 2026. This growth fails to keep pace with the 77.6% rise in rent.
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