Home prices, rents skyrocket in Turkey amid economic turmoil

By AYSE WIETING and SUZAN FRASER
Associated Press

ISTANBUL (AP) — Economic turmoil driven by inflation of 85% has plunged Turkey into one of its worst property crises. Skyrocketing prices have made finding affordable housing to rent or buy an uphill battle for many, especially for millions earning minimum wage who also struggle to cover food and energy costs. Increasing construction costs and inflation have pushed up housing prices globally. But Turkey’s property crisis has been exacerbated by President Recep Tayyip Erdogan’s unorthodox policy of lowering interest rates despite high inflation. That’s the opposite of traditional economic thinking. It’s pushed many to invest in property to preserve their savings against rising inflation. With housing in short supply, prices have soared. Foreign buyers also have inundated Turkey’s property market.