The rental dilemma in urban transformation

■ Hülya K. ORUÇOĞLU

IstanbulThe rent increase in the last 3 years has reached 701 percent. According to data from the housing valuation platform Endeksa, average rents in Istanbul reached 18.29 TL in the third quarter of the year. Despite all the criticism on different issues, including the violation of property rights, the urban transformation bill was accepted in the General Assembly of Parliament, but the proposal did not include titles related to rental aid and incentives. When the proposal became law, all eyes turned to supporting the 3,500 lira rental for Istanbul during the transformation process.

‘IT SHOULD BE 10 THOUSAND TL’

Real estate lawyer Lawyer Çiğdem Kezer stressed that the rental assistance of 3,500 lira is very low compared to the current conditions and said: “There is no situation regarding rental assistance or incentives in the published law. However, we hope for regulation that includes both rental support and loans for urban transformation. Increasing rental assistance for landlords from 3,500 TL to 10,000 TL is not compatible with the normal flow of life.
“Although it may seem like that, this aid should be 10,000 lire per month,” he said. Kezer stated that rental support is provided to landlords for 18 months and said: “Tenants can receive rental support for two months under the name of moving money. This means that the current support is 7,500 lira. The figure in question must be around at least 15,000 lire. Usufruct owners can also receive 5 months’ rental assistance during this period. “This aid should also be increased,” he said.

The industry is waiting for an update.

Hakan Akdoğan, President of the All Businessmen Real Estate Consultants Association, said: “When we look at the market conditions, rents are incredibly high and this puts a lot of pressure on citizens. Increasing rental assistance in urban transformation will benefit citizens. “When we look at rents, the 3,500 figure seems ridiculous,” he said. Akdoğan stated that “an update on this issue is expected in the sector” and that rental assistance should at least double.

“Rental support should be increased from 18 months to 24 months”

“Whether the building construction phase lasts two years or one year, support is provided for 18 months. “This period should be extended to 24 months,” said lawyer Çiğdem Kezer, adding: “Anyone who receives rental assistance through a property undergoing urban transformation cannot receive this assistance a second time. “Also on this issue it is regulation is necessary,” he said.