Rent inflation - She is the most powerful woman in the Turkish economy - and now has to live with her parents again
The rental market in the Turkish metropolis of Istanbul is apparently overwhelming even the country's most powerful banker: Hafize Gaye Erkan, head of the Turkish central bank since June, has moved back in with her parents, according to her own statements. "We haven't found any accommodation in Istanbul. It's terribly expensive. We stayed with my parents," said 44-year-old Erkan in an interview with the newspaper "Hürriyet" published on Saturday.
"Could it be that Istanbul has become more expensive than Manhattan?" Erkan continued in the interview. Before her appointment as head of the Turkish central bank, the 44-year-old had lived in the USA for two decades - where she worked in management positions at several major banks, including Goldman Sachs.
Inflation puts citizens in Turkey under massive pressure
Turkey has been experiencing massive inflation for months: in November, the inflation rate was 62 percent compared to the same month last year. In Istanbul, rents rose by 77.1 percent in the same period, according to a study by Bahçesehir University, which is based in the city.
As a countermeasure, the Turkish government has limited rent increases to 25 percent. According to experts, however, this measure has further exacerbated the situation on the rental market: landlords are now trying to get rid of their tenants by any means necessary, sometimes illegally, in order to re-let properties for much higher prices.
To combat inflation, the Turkish central bank, under Erkan's leadership, has raised the key interest rate by 8.5 percentage points to 40 percent. However, these "monetary tightening measures" have now come to an end, Erkan told "Hürriyet".
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Due to the high inflation rates in Turkey, which reached 62% in November compared to the same period last year, the rental market in Istanbul has become particularly challenging. Hafize Gaye Erkan, the head of the Turkish Central Bank, has shared her personal struggle with this issue, as she and her family had to move back in with her parents due to the costly housing market in Istanbul.
Source: www.stern.de
