Rental market trends in Istanbul
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Rental market trends in Istanbul

Created: 2023-09-05 Modified: 2023-11-24 Views: 646 Luxury Signature Admin
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Istanbul, the cultural and economic heart of Turkey, has experienced rapid urbanization and explosive population growth in recent years. As the city continues to attract locals and foreigners, Istanbul's rental market has become a focal point of interest. As the city continues to evolve, it presents challenges and opportunities for investors and tenants alike. Staying abreast of the latest real estate market trends is essential to making informed decisions in the ever-changing rental market. Whether you are looking for an investment opportunity or a place to live, the rental market in Istanbul has a lot to offer. This article delves into the rental market trends in Istanbul, providing valuable insights for both investors and renters.

 

Population growth and urbanization

The population of Istanbul is growing steadily, and it is currently one of the most densely populated cities in Europe. The influx of people to Istanbul, driven by economic opportunities, educational institutions, and a vibrant cultural scene, is having a profound impact on the rental market. As the city continues to grow, the demand for rental properties remains consistently high, especially in sought-after neighbourhoods.

 

Various types of rental properties

The rental market in Istanbul offers a wide variety of housing options, from traditional apartments and houses to modern flats, hotel apartments and furnished apartments. The city's architecture reflects its rich history, with many properties featuring a mixture of contemporary and historical elements. Moreover, real estate developers continue to invest in new projects, creating a variety of rental opportunities to meet different preferences and budgets.

 

The various neighborhoods of Istanbul

Istanbul is a city of neighborhoods, each with its own charm and unique character. Rental market trends in Istanbul are closely related to neighborhood preferences. In recent years, districts such as Besiktas, Sisli and Beyoglu have gained great popularity due to their vibrant social facilities and proximity to commercial areas. However, renters are also looking for quieter, family-friendly neighborhoods such as Maslak and Zeytinburnu for a quieter living environment.

 

Rental price fluctuations

Rental prices in Istanbul have witnessed many fluctuations in recent years. Factors such as location, type of property, and market demand play an important role in determining rental rates. While some upscale areas command premium rates, suburban neighborhoods often offer more convenient and affordable options. Additionally, seasonal changes can affect rental prices, with some neighborhoods seeing higher demand during the summer months.

 

Short term rentals vs. Long term rentals

The emergence of short-term rental platforms such as Airbnb has created new opportunities for property owners in Istanbul. Currently, many investors are choosing short-term rentals, especially in popular tourist areas such as Sultanahmet and Taksim. However, long-term rentals still dominate the market, catering to the needs of the city's residents, workforce and students.

 

The future of the rental market in Istanbul

The future of the rental market in Istanbul looks promising, and as the city continues to develop and urban renaissance, the demand for rental properties is expected to remain strong. However, investors and real estate owners should carefully consider market trends, location and property type when entering the Istanbul real estate market to maximize their returns.

 

Terms of apartment rental contracts in Turkey:

  • Commitment to care and maintenance: The tenant is obliged to take good care of the apartment and maintain it properly.
  • Dealing with neighbors: The tenant must deal with neighbors with high morals and respect their privacy.
  • Not disposing of the apartment: The tenant is prohibited from renting the apartment in whole or in part or handing it over to another tenant.
  • Landlord's approval of modifications: The tenant may not make any change in the apartment without obtaining the written consent of the landlord, and the tenant bears legal responsibility for any damage to the apartment as a result of any unauthorized modification.
  • Inform the landlord of other claims: the tenant is obliged to inform the landlord if any other person has a claim on the property rights to the apartment.
  • Reporting repairs: The tenant must inform the landlord of any repairs needed in the apartment and bear the costs if they are not reported.
  • Regular maintenance: The tenant is responsible for maintaining the apartment as required by its normal use.
  • Taxes and fees: The landlord is obligated to pay taxes and fees related to the ownership of the apartment, while the tenant must pay taxes and fees related to the monthly use of the apartment.
  • Returning the apartment in its original condition: the tenant is obligated to return the apartment to the owner in a condition similar to its condition when it was delivered for the first time, and if there is a shortage or damage to the supplies, the owner has the right to deduct the corresponding value from the insurance or demand compensation for the damage.
  • Pay the apartment rent on time: the tenant must not be late in paying the apartment rent, and the owner has the right to claim him by law in case of delay.
  • Commercial Use: The tenant is prohibited from using the apartment for commercial purposes.

 

Does the owner have the right to evict the tenant from the apartment?

Turkish laws specify five cases in which the owner has the right to evict the tenant from the property:

  1. Expiration of the lease term: In the case that the lease term expires and both parties do not wish to renew the contract, the tenant can leave the apartment by mutual consent. If the tenant wishes to stay, the contract is automatically renewed.
  2. Sale of the property: If the property is sold without a prior legal agreement with the tenant, a detail must be added to the real estate registry based on the lease contract. If this is not done, notice must be sent to the tenant within one month of the date of transfer of ownership to the new owner. If there is a prior agreement to allow the tenant to stay, the tenant can continue to live in the apartment and continue living. In this case, the previous owner has to transfer the property insurance that was initially paid to the new owner.
  3. Carrying out renovations and modifications: the owner has the right to make renovations or modifications to the apartment to preserve its investment value. However, it is forbidden to rent the apartment to anyone other than the old tenant and this prohibition is valid for 3 years.
  4. Tenant delay in paying rent: If unpaid rents accumulate, the owner can demand termination of the contract and evict the tenant from the apartment, obliging the tenant to pay all rent arrears.
  5. The owner needs the apartment for personal purposes or for his first-degree relatives: The owner has the right to terminate the lease if he needs to use the apartment for personal purposes or for the residence of one of his first-degree relatives. However, the landlord cannot rent the apartment to another tenant for the first three years after the previous tenant's eviction.

Frequently asked questions

What are the types of rental properties in Istanbul?

The rental market in Istanbul offers a wide variety of housing options, from traditional apartments and houses to modern flats, hotel apartments and furnished apartments. The city's architecture reflects its rich history, with many properties featuring a mixture of contemporary and historical elements. Moreover, real estate developers continue to invest in new projects, creating a variety of rental opportunities to meet different preferences and budgets.

What is the difference between short term rentals and long term rentals?

The emergence of short-term rental platforms such as Airbnb has created new opportunities for property owners in Istanbul. Currently, many investors are choosing short-term rentals, especially in popular tourist areas such as Sultanahmet and Taksim. However, long-term rentals still dominate the market, catering to the needs of the city's residents, workforce and students.

Does the owner have the right to evict the tenant from the apartment?

Turkish laws specify five cases in which the owner has the right to evict the tenant from the property:
Expiration of the lease term: In the case that the lease term expires and both parties do not wish to renew the contract, the tenant can leave the apartment by mutual consent. If the tenant wishes to stay, the contract is automatically renewed.
Sale of the property: If the property is sold without a prior legal agreement with the tenant, a detail must be added to the real estate registry based on the lease contract. If this is not done, notice must be sent to the tenant within one month of the date of transfer of ownership to the new owner. If there is a prior agreement to allow the tenant to stay, the tenant can continue to live in the apartment and continue living. In this case, the previous owner has to transfer the property insurance that was initially paid to the new owner.
Carrying out renovations and modifications: the owner has the right to make renovations or modifications to the apartment to preserve its investment value. However, it is forbidden to rent the apartment to anyone other than the old tenant and this prohibition is valid for 3 years.
Tenant delay in paying rent: If unpaid rents accumulate, the owner can demand termination of the contract and evict the tenant from the apartment, obliging the tenant to pay all rent arrears.
The owner needs the apartment for personal purposes or for his first-degree relatives: The owner has the right to terminate the lease if he needs to use the apartment for personal purposes or for the residence of one of his first-degree relatives. However, the landlord cannot rent the apartment to another tenant for the first three years after the previous tenant's eviction.

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