Real estate consultant: "Supply-demand balance is broken"

Real estate consultant: "Supply-demand balance is broken"
Date: 23.8.2023 10:00

As rents continue to rise in the housing market, it has become more difficult to find rental homes in big cities. While the citizens who are looking for a house to rent are suffering from high rents, the property owners are trying to increase the rents to protect themselves against the ever-increasing inflation.

email Print zoom+ zoom-
The upward trend that started with the pandemic in the real estate market continues with the bad course in the economy.
 
Especially in big cities, it becomes more difficult to find a rental house, while existing houses also bend the citizens' backs due to high rental prices.
 
Real estate consultant Hasan Gürlek pointed out that the deterioration of the supply-demand balance lies at the root of the crisis.
 
Noting that the supply-demand balance in the market has deteriorated with the Covid-19 epidemic and the effect of the earthquake on February 6, Gürlek stated that the interconnected structure of the economy has been damaged.
 
"Many houses and businesses were destroyed in the earthquake. Big cities migrated. Citizens had to migrate to meet their housing needs. For example, if there are 10 thousand houses in big cities, it was not enough for 20 thousand people. Here, the supply-demand balance is broken. New residential and commercial space constructions decreased after the increase in construction costs. This situation could not meet the housing needs. The high interest rate application of the banks made it difficult for the candidates who want to buy a house. As the demand for rental housing increased, the price balance started to rise," he said.
 
Drawing attention to the hikes in basic needs, Gürlek underlined that the hikes affect all citizens.
 
"The constant hikes in the prices of basic needs in the real market have brought the income situation of everyone down. Expenses have been on the rise. Credit card usage has increased. Cash flow in the market has stopped. This situation forces people to increase the price of their properties. Conflicts arose between current tenants and property owners after the government imposed a 25 percent cap on rent increases. In order to determine a fair price, it is necessary not to be a party. The mediator has to look at the real market, economic conditions and inflation from the perspective of both the landlord and the tenant," he added.
 

“PRICES INCREASED 10 TIMES IN THE LAST 2 YEARS”

 
Emphasizing that the economic problems experienced affect both the landlord and the tenants, Gürlek underlined that the events pushed the market and people into imbalance.
 
"There was a psychological imbalance between the parties. The determined prices have also become unbalanced. If we need to price the rental housing in Ankara, we can say that the lowest average rent is 7 thousand TL. When we evaluate the price of a real estate, we look at the prices of the past 2 years ago. Based on the last 2 years, pricing has increased at least 10 times," Gürlek said.

YEREL HABERLER

Milli Gazete Puplication Group All Rights Reserved © 2000-2016 - Can not be published without permission ! Tel : +90 212 697 1000  /  Fax : +90 212 697 1000 Software Development and System Support: Milli Gazete