Many owners who have purchased property in Turkey for a residence permit or citizenship, without intending to live there, often wonder how to recoup their investment quickly. Renting a flat to tourists for short stays of 2–3 days to several weeks can be cumbersome, particularly given recent legislation changes. Alternatively, accommodating long-term tenants, such as families who may rent a flat for decades, is risky because inflation significantly reduces income over time.
There’s a solution to the problem: a highly profitable yet often overlooked niche: renting apartments to students. This long-term strategy does not require adherence to strict requirements for premises, unlike those for tourists and your guests will move out within a few years at the most.
Turk Estate wrote about the shortage of student accommodation in Turkey a few years ago. Today, this issue is far more acute and has become one of the most pressing concerns. The rapid rise in rent rates, combined with inflation, has severely hit students. There’s a desperate shortage of dormitory spaces and students are finding it increasingly difficult to secure even a modest place to stay. Many are willing to rent nearly any accommodation in the city where they study, often sharing with others. This is because numerous students enrol in universities far from home, sometimes in entirely different regions and they are determined not to lose their valuable opportunity for higher education due to the lack of housing options.
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Average figures
Experts in the market sector of apartments in Turkey have reported that in major metropolitan areas, rents for even dormitory flats could rise to TL 25,000 (USD 732) by mid-September 2024. Moreover, rents have already increased by 50% recently.
Students at Istanbul University have reported that, in this situation, they are renting ordinary flats, not dorm rooms, in groups of two, three or four people. The cost for each person is at least TL 13,000 (USD 380).
Hakan Akcam, president of the Ankara Chamber of Realtors, stated that rents in the capital start at TL 22,000 (USD 644). Tiny flats in badly deteriorated buildings near universities are being rented for TL 15,000 (USD 439) with a note saying ‘suitable for students’. Simultaneously, the price of a 1+1 flat where three students can live together is around TL 21,000 (USD 615) and this is not an average rate, but rather a very modest one.
Therefore, in cities with numerous universities, apartments for rent are snapped up quickly, especially if they are within walking distance of the university. Alternatively, some ‘university cities’ are not well known to Europeans, as they are not popular tourist destinations. This means you can buy a flat there at a much lower price.
Top cities
When the results of university enrolments were announced, property rental prices in cities with popular universities increased even further:
- In Istanbul, Turkey's second-largest city in terms of student population, rents rose by 46% in nominal terms compared to the same month last year. The recorded figures were TL 234 (USD 7) per square metre or TL 23,373 (USD 684) per student housing unit on average.
- In Eskisehir, the city with the largest number of registered university students in Turkey, rents rose by 69% in nominal terms year-on-year as of July 2024. The average rate per rented square metre was TL 161 (USD 4.7), while the average monthly rental cost of the corresponding flat was TL 15,098 (USD 442).
- In Izmir, a metropolis with a large concentration of universities, rents increased by 61% in nominal terms in July 2024 compared to the same month last year. The average rate was TL 207 (USD 6) per square metre or TL 21,903 (USD 641) for a flat.
- In Ankara, rents rose by 63%, with an average of TL 176 (USD 5.15) per square metre and TL 20,965 (USD 614) for a residence.
- In Antalya, Turkey’s ‘resort capital’, which is home to several higher education institutions, rents rose by 23% year-on-year in nominal terms. The figures were TL 172 USD 5) per square metre, with the average rent at TL 18,749 (UD 549).
- Kocaeli, a province close to Istanbul, saw an increase of 63% over the year. The average rent per square metre was TL 161 (USD 4.7) and the average rent per unit was TL 18,248 (USD 534).
- More affordable ‘university’ cities in terms of rent include Sakarya with TL 14,168 (USD 415) per month, Erzurum with TL 14,339 (USD 420), Bursa with TL 16,044 (USD 470) and Konya with TL 17,309 (USD 507).
- You might want to consider Mugla, the capital of the province of the same name, home to the popular resort towns of Marmaris, Fethiye and Bodrum, as well as Edirne.
Housing sales statistics for individual cities
The previously mentioned Edirne is not included in the list of the most budget-friendly locations, largely due to its proximity to Istanbul. For students studying at the University of Trakia in Edirne, it’s becoming increasingly difficult to make ends meet because of rising rent prices in the city.
As a result, new flats ‘entering’ the rental market in this area will be in high demand, especially if a small discount from the average market price is offered. The minimum rent for unfurnished apartments starts at TL 10,000–15,000 (USD 293–439). Furnished apartments can be rented at a higher rate.
By the way, Edirne is a destination where prices have increased significantly since 2021. Although the province and its capital, also named Edirne, are not particularly large, the average cost per square metre is USD 826. The range spans from a minimum of USD 446 to a maximum of USD 1,310; with the average price of a housing unit standing at USD90,912).
Eskisehir
In Eskisehir, housing prices are rising at a slower pace. This is partly because the city is already considered expensive. Data released by the Turkish Statistical Institute (TUIK) indicated that property sales in Eskisehir increased by 2.2% in August 2024 compared to the same period last year. A total of 2,124 housing units were successfully sold, of which 611 were in new buildings (incidentally, there are more new buildings here than in Edirne) and 1,513 in the secondary market.
Izmir
Izmir is the third-largest metropolis in Turkey, one of its key economic and educational centres and a popular resort destination. Housing here is understandably expensive. Izmir is generally among the most costly cities in Turkey due to its diverse economy and favourable climate.
Local apartments are not limited to ‘student rent.’ Highly paid employees are also eager to rent in the city. If the owner decides to move to Izmir, they can use the flat as a personal residence.
In August, 7,044 properties were sold in the city. Foreigners are also showing interest in the town. Of the districts, Buca is the most sought-after, with 8,146 sales since the beginning of 2024. It’s followed by Menemen (6,062 housing units sold), Torbay (5,390) and Karsiyaka, with a small gap (5,360).
Ankara
Ankara, the capital of the Republic, is home to a large number of universities. While there are many hostels in the city, there remains a catastrophic shortage of spaces in them. As per regional statistics from TÜIK Ankara, 12,496 housing units, mostly flats, were sold in Ankara in August. In the same month of 2023, 11 thousand housing units were sold in the capital. This shows that the volume of transactions is increasing year by year. Additionally, analysts report that August consistently sees a rise in property sales in Ankara. The popularity of flats in specific neighbourhoods can be gauged by the number of residences sold during the month (Ankara, August 2024):
- Akyurt: 170
- Altındağ: 899
- Beypazarı: 61
- Elmadag: 81
- Etimesgut: 1,102
- Gölbaşı: 688
- Güdül: 70
- Haymana: 30
- Kahramankazan: 108
- Kechioren: 1,768
- Kiziljahamamam: 76
- Mamak: 1,401
- Polatly: 345
- Pursaklar: 338
- Sinjan: 1,627
- Yenimahalle: 1,327
- Chankaya: 1,921
- Chubuk: 342
- Shereflikochhisar: 91
Istanbul
If we consider year-round figures rather than summer rentals, where Muğla province, particularly the Bodrum resort, leads, Istanbul is the most expensive city in the country. As mentioned by Turk Estate at the start of the article, ‘TL 234 (USD 7) per square metre or TL 23,373 (USD 684) for a unit of student housing’, these are average figures that include the more remote outskirts and nearby villages. Prices are two or even three times higher in the metropolis of Istanbul, especially in its central districts where universities are concentrated. For example, the rent for a 1-room flat (1+0) of 45 square metres in the more desirable areas of Istanbul, within walking distance from the metro and public transport routes, has risen to TL 45,000 (USD 1,317). The rate for furnished flats, such as a 2+1 in Maslak, is as high as TL 85,000 (USD 2,488).
Stating that students have become the ‘new favourites’ of landlords, Hakan Akdogan, president of the Association of Real Estate Consultants for Entrepreneurs (TÜGEM), explained this trend. He noted that Istanbul is home to the most prestigious universities. Students who cannot afford the entire flat on their own are willing to ‘pool their money,’ minimising the risk of non-payment for landlords: ‘Since two or three friends live in the same building, they usually don't mind the high rent, as they share the cost between them. So there are no problems with regular payments, “ Akdogan said. “ There are also no issues with eviction, as students typically stay for only a few years or even months. That's why students have become the new favourites of landlords...’.
Reporting that rents in areas near student campuses have risen by 10 % with the start of the new academic year, Akdoğan explained, ‘In regions such as Beşiktaş, Kadıköy, Şişli, Sarıyer and Üsküdar, there’s notable movement in rental prices. They quickly ‘adapt’ to current conditions, especially in areas close to universities on the outskirts of the city,’ the expert said.
Şenay Ara Demir, a board member of the İstoç Entrepreneurs Association and a property consultant, stated that with the start of the new academic year (2024–2025), there’s been a once-off increase in rental rates of 20–25%. The greatest ‘activity’ in terms of demand has been observed in the 1+1 segment, although both 1+0 studios and 2-bedroom flats (2+1) are also being rented out successfully.
Emphasising that students prefer new buildings and affordable flats near public transport stops, Shenay Arach Demir explained: ‘Landlords have started to rent out their furnished flats for between TL 25,000 (USD 732) and TL 30,000 (USD 878). In the Maslak neighbourhood, for instance, 1+1 empty (unfurnished) residences are being rented for TL 35,000 (USD 1,025), while 2+1 furnished flats are rented for TL 75,000 (USD 2,196). Meanwhile, 3+1 apartments, in Foulier, in the elite neighbourhood of Shishli, range from TL 75,000 (USD 2,196) to TL 100,000 (USD 2,928) and 2+1 flats are priced up to TL 45,000 (USD 1,317).
The specialist noted that the most ‘rentable’ districts in Istanbul for small-sized flats are Maslak, Kıyıthane, Beşiktaş, Beyoğlu, Nişantaşı and Sarıyer. On the Asian side, the most popular areas are Kadıköy, the Bagdat Street area and Bostancı.
The student sector is currently a promising niche for landlords, making it wise to take advantage of this opportunity in the autumn when the market for houses for sale in Turkey traditionally experiences a temporary lull.