t24.com.tr
Turkey: Rise in Rental Yields Drives Investment in Smaller Apartments
Due to a recent surge in rental prices exceeding increases in property values, investment in smaller apartments in Turkey has increased significantly, with Ankara showing the highest rental yield among major cities.
- What is the primary reason for the increase in "investment-purpose" apartment sales in Turkey?
- The primary driver is the disparity between rising rental prices and relatively stagnant property values. This makes rental properties more lucrative investments, leading to increased demand for smaller, more affordable units suitable for renting.
- How have rental prices and yields changed in Turkey recently, and which city shows the highest returns?
- Rental prices have increased by 34 percent nationwide, outpacing inflation. Ankara boasts the highest annual rental yield among major cities at 10.47 percent with a 10-year depreciation period. This high yield is due to the combination of increased rental prices and relatively lower property values.
- What are the underlying market trends contributing to the increase in demand for smaller apartments in Turkey?
- Increased housing costs coupled with decreased purchasing power and a shift toward smaller nuclear families have driven demand for smaller apartments, both among developers and buyers. This is reflected in the high proportion (60 percent) of 1+1 and 2+1 apartments among new listings.
Cognitive Concepts
Framing Bias
The article presents a balanced overview of the housing market, highlighting both rising prices and rental yields. While it emphasizes the increase in rental yields and investment-driven purchases, it also acknowledges the real decrease in housing prices over the past 1.5 years and provides data on both price increases and rental increases. The headline, if there was one, is not provided, preventing a complete framing bias assessment.
Language Bias
The language used is largely neutral and descriptive, presenting data and expert opinions without overt emotional loading. There are no apparent loaded terms or charged language used to sway the reader's opinion.
Bias by Omission
While the article provides comprehensive data on rental prices and yields, it could benefit from including information on factors influencing these trends. For example, it omits discussion of potential government policies affecting the housing market or the role of speculation in driving up prices. Additionally, the perspectives of renters facing rising costs are absent. Given the length of the article and the breadth of the topic, however, some omission is understandable.
Sustainable Development Goals
The article highlights a surge in housing prices and rents, disproportionately affecting lower-income populations who may struggle to afford housing, potentially exacerbating existing inequalities. While not directly addressing SDG 10 (Reduced Inequalities) initiatives, the economic trends described could widen the gap between the rich and poor. Increased investment in rental properties suggests a shift in the market driven by profit, potentially overlooking the needs of those struggling with housing affordability.