Millions of people displaced by Turkey’s worst earthquakes in a century have moved in search of shelter, compounding a housing crisis that’s already seen rents surge on soaring inflation.
(Bloomberg) —
Millions of people displaced by Turkey’s worst earthquakes in a century have moved in search of shelter, compounding a housing crisis that’s already seen rents surge on soaring inflation.
Migration to neighboring provinces in the country’s southeast and big cities further west has led to rent increases of as much as 45%, according to a study by Istanbul-based TSKB Real Estate Appraisal Inc.
Turkish President Recep Tayyip Erdogan said around 2.2 million people have left the 11 affected provinces since the 7.7 and 7.6 magnitude earthquakes on Feb. 6, which killed almost 50,000 people in Turkey and neighboring Syria. Those who stayed in the area faced further quakes on Feb. 20.
In major cities, those who can afford it are flocking to the perceived safety of suburbs away from fault lines, such as Beykoz in Istanbul and Urla in Izmir on the Aegean coast.
Turkish Industry, Agriculture Face Labor Exodus Over Earthquakes
“There’s a big increase in demand for both rentals and purchases,” said Ahmet Onsoy, a real estate agent in Zekeriyakoy, a wealthy Istanbul suburb. “People living in areas highlighted as risky have rushed to our offices, but there aren’t many available houses left — especially for rent.”
“Prospective clients are calling from the city center and from other big cities, inquiring about detached homes or flats in low-rise buildings,” Gunay Levent, a real estate agent working in Izmir’s Urla said. “Many are specifically asking about the location of fault lines.”
Owners have started increasing prices in response, he said.
Opposition leaders are calling for a ban on home sales to foreigners. Economy newspaper Dunya suggested rent caps based on property value on Thursday. The average home rent had already surged 177% year on year before the earthquakes, Dunya reported, citing real estate data analytics firm Endeksa.
“When we come to power, we will prevent home sales to foreigners for five years,” said Kemal Kilicdaroglu, head of the Republican People’s Party and a possible contender in this year’s presidential elections.
Nationalist Iyi Party’s leader Meral Aksener also urged a ban, citing “the danger of demographic change” in provinces bordering Syria, which host hundreds of thousands of refugees. Average home prices in Turkey surged 59% in real terms in 2022, according to central bank data.
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