Inflation and the Impact of Refugee Influx on Rental Prices

Inflation and the Impact of Refugee Influx on Rental Prices

  • 04.12.2023
  • 03:47:19

Turkey has experienced a rapid increase in rental prices in recent years, driven by economic and social dynamics. The main economic drivers include demand and supply imbalance, high construction costs, interest rates, credit conditions and real estate investments. However, the main focus should be on the effects of hyperinflation and the influx of refugees on the increase in rental prices.

Turkey has long been subject to economic crises and large waves of migration. To understand the effects of inflation and the influx of refugees on rental prices, it is necessary to consider each factor separately and then examine the overall effects. Turkey is also struggling with high inflation rates, which are pushing up the prices of basic necessities and putting pressure on rental prices.

Turkey has been struggling with high inflation rates in recent years and this is reflected in the increase in rental prices. Inflation increases material and labor costs and puts additional burden on the construction sector. This increases the costs of new housing projects and causes rental prices to rise.

The impact of inflation reduces the purchasing power of tenants and encourages landlords to increase rents. This is an important reason for rising rent prices. Especially for low- and middle-income tenants, high inflation rates make paying rent a greater burden. High inflation causes tensions between tenants and landlords. While tenants are experiencing financial difficulties due to high rent increases, landlords want to raise rental prices, taking into account the financial burden of inflation.

The government should control inflation through economic policies and fiscal measures to minimize the impact of economic crises on rent increases. Low inflation rates will slow the increase in rental prices and help landlords avoid excessive price increases by preserving the purchasing power of tenants. Rent subsidies and support programs for low-income families should be established. Such subsidies contribute to housing costs for low-income renters.

Turkey hosts many refugees affected by war and human rights violations in neighboring countries. The influx of these asylum seekers has led to an increase in demand for housing, particularly concentrated in large cities, leading to an even greater imbalance between housing supply and demand. The influx of asylum seekers has led to a significant increase in the demand for housing in Turkey. This increase is driven by a rapid rise in the demand for rental housing to meet the accommodation needs of asylum seekers. This has a direct impact on rental prices.

The vast majority of asylum-seekers usually gravitate towards large cities and central areas in their countries of origin. The demand for housing in these areas further increases the already high demand and leads to a rapid rise in rental prices. Rent prices in concentrated areas tend to increase more than in other areas. The influx of asylum-seekers exceeds the available rental housing stock and there are difficulties in meeting the demand. In this case, rental prices rise as housing supply fails to keep up with demand. Especially in regions where housing supply is limited, rental prices rise even more.

Asylum seekers often have lower incomes and therefore tend to seek more affordable rental housing. This creates demand for the same housing as low-income locals, increasing competition between local and refugee tenants and driving up rents. The majority of asylum-seekers live informally and there is no control over rent prices. The increase in informal rents leads to an overall increase in rental prices.

Some measures should be taken to reduce or resolve rent problems caused by refugees. Policies should be developed to increase the supply of housing in areas affected by the influx of refugees. New housing projects should be encouraged and urban transformation projects should be supported. Implement affordable housing policies and build social housing for refugees and locals. Develop policies that encourage the registration of asylum seekers to prevent unregistered rentals. Rent regulations and control mechanisms should be strengthened to protect all tenants, including asylum seekers.

The effects of inflation and the influx of refugees cannot be ignored as the underlying causes of the rapid increase in rental prices in Turkey. Solutions such as economic stabilization, increased housing supply, and an emphasis on harmonization will help to contain the rise in rent prices. This will lead to a fairer and more sustainable housing market for both tenants and landlords. Every solution has its challenges and constraints. However, in order to ensure economic prosperity and social peace, a long-term and comprehensive approach is needed to address all problems.