2023-12-16 16:57:03
Difficult to find accommodation in Istanbul, even for the governor of the Central Bank. Gaye Erkan, appointed in June by Erdogan to reduce hyperinflation in the country, explains in the press that she returned to live with her parents due to lack of housing. A way to highlight poor housing, one of the main problems in Turkish cities.
Published on: 12/16/2023 – 5:57 p.m.
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« Is Istanbul more expensive than Manhattan? » Gaye Erkan asks the question in the columns ofHurryet one of the main daily newspapers in the country.
She left the United States, where she had lived for more than twenty years, to move to Istanbul six months ago. With a husband and a child, the banker explains that she was forced to return to live with her parents, not having found a house at affordable prices for her family.
Despite the monetary tightening policy by increasing rates led by Gaye Erkan, inflation is not weakening in Turkey. It was still around 60% in November.
Capped rents
It’s even worse for housing prices. The cause is rising construction costs and a shortage of supply. Gaye Erkan denounces the lack of social housing which leads to an increase in rents and which would be “ specific to Turkey » she said with the multi-owners in her sights. “ One person should not own ten houses “, she insists.
For a year and a half, the Turkish government has capped the revision of housing rents at 25%. A provision not always respected, and legal proceedings between owners and tenants are increasing in the face of this surge in prices.
Read alsoTurkey: the Central Bank raises its key rate to 40%
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