This photo taken on Aug. 22, 2023 shows a view of Ankara, Türkiye. Economic turmoil driven by soaring inflation has plunged Türkiye into one of its worst property crises. (Mustafa Kaya/Handout via Xinhua)
by Burak Akinci
ANKARA, Aug. 22 (Xinhua) -- Economic turmoil driven by soaring inflation has plunged Türkiye into one of its worst property crises.
In the rental market, some 90,000 rent dispute-related legal cases have been brought to courts since the start of the year, a 100 percent increase from a year ago, the semi-official Anadolu Agency quoted Turkish Justice Minister Yilmaz Tunc as saying on Friday.
An arbitration mechanism for such conflicts will be introduced on Sept. 1 to reduce the courts' workload, the report added.
More severe disputes, which involve physical confrontations between homeowners and renters, have become frequent in Turkish big cities.
In Türkiye's largest city Istanbul, property owners have even turned to criminal syndicates to defend their interests in rental disputes, with vulnerable single women being especially targeted, Arti Gercek digital news website reported.
Türkiye is battling with runaway inflation for years. The inflation in July stood at nearly 50 percent and could rise to 58 percent at the end of 2023, according to the central bank.
The soaring inflation pushed landlords across Türkiye to continue hiking rent prices, some of whom even demand one year's rent to be paid in advance.
Rents have increased by 101 percent on an annual basis in May across Türkiye, according to a study revealed in June by Istanbul's Bahcesehir University Center for Economic and Social Research.
The rise was particularly pronounced in major cities such as Istanbul, Ankara, and Izmir.
To address the issue, the parliament extended in late July a regulation that limits rent increases to 25 percent until July 1, 2024.
However, the measure only applies to existing lease agreements, leaving newly rented properties unbound by the regulation, which prompted property owners to evacuate the old tenants and search for new tenants to avoid the cap.
Reports suggest that the Justice Ministry is working on an amendment that would introduce jail sentences for landlords who ask for exorbitant rent prices.
But small landlords also argue that they live off the rent of their property to make ends meet amid Türkiye's economic difficulties, and the rents paid by tenants remain below the fair value due to high and persistent inflation. ■
A man looks for houses for rent on a website in Ankara, Türkiye, on Aug. 22, 2023. Economic turmoil driven by soaring inflation has plunged Türkiye into one of its worst property crises. (Mustafa Kaya/Handout via Xinhua)
