Projections indicate that rental housing prices in Turkey, including units previously associated with Russian markets, are likely to rise. This assessment comes from the Association of Tour Operators of Russia, known as ATOR. They point to regulatory changes as a key driver behind the trend.
ATOR reported that the Turkish parliament has approved the first portion of a new law governing the rental of tourist residences. The measure, which took effect on January 1, 2024, requires owners who rent flats, apartments, and other types of housing to tourists to obtain licenses and meet a set of additional conditions. Subleasing will be prohibited, and substantial fines will be levied for violations. The enforcement actions have already begun in some cases. [ATOR Attribution]
The organization emphasized that the law is not aimed at deterring tourism. On the contrary, it is designed to strengthen protections for travelers and to regulate the growing domestic rental market. Its broader aim is to curb the expansion of what critics call a gray market for short-term rentals that relies on multiple platforms and intermediary apps, including popular channels such as AirBnb. In the long run, this regulatory tightening is expected to influence overall costs for tourist accommodations across Turkey.
Based on ATOR’s forecasts, average prices for tourist rental apartments and related accommodations across Turkey are projected to increase by about 30 to 35 percent compared with the coming year. This spread reflects both compliance costs for property owners and adjustments in the market to regulated rental practices. [ATOR Forecast]
Industry observers highlighted that the current tourism season in Turkey faces headwinds. Uğur Talayhan, formerly the Vice President of the Accor Hotel Group and former General Manager of Istanbul’s Swissotel The Bosphorus, commented that it is difficult to claim a particularly successful season at present. He cited several pressures: elevated prices driven by domestic inflation, lingering effects from recent economic volatility, the impact of past earthquakes, ongoing concerns about future seismic events, and the political cycle ahead of May elections. He also noted that occupancy levels in Istanbul have been affected by these factors, contributing to cautious planning among both domestic and international visitors. [Talayhan Commentary]
In related remarks, ATOR has previously shared insights about hospitality trends in other regions, including characteristics of all-inclusive hotel models in the United Arab Emirates, which have influenced regional pricing and guest expectations in neighboring destinations. [ATOR Remarks]