In Istanbul, tens of thousands of people pay between 40,000 and 60,000 Turkish Lira in rent per month. In Antalya, it's 25,000, and in Izmir, 20,000.⁴ And these figures are relentlessly increasing every year. At some point, everyone wonders: "Wouldn't it be better to buy a house with this money and pay installments?"“
Asking the question is easy. Calculating the answer, however, is something most people put off. Today, we're doing that calculation for you — with real figures from Istanbul, Antalya, and Izmir. In the end, you'll know what to look for to get a clear answer to the question of whether to rent or take out a loan.
Let's state this upfront: your perspective will change once you see the bill.
Is Paying Rent Really “Safe”?
Most people find renting risk-free. No bank debt, no property issues, no using up savings. Just making monthly payments and getting by.
But this perspective is one-dimensional. When you're renting, two things actually happen.
Firstly, you're adding value to the landlord's property every month. The rent you pay either covers their bank installments or goes entirely into their pocket as net income.
Secondly, you're living with constantly increasing costs. Has your lease been renewed? Now is the time. Legally, landlords cannot raise rents above the consumer price index — but they can demand much more “by agreement.” In 2024, effective rent increases in Istanbul exceeded 45 percent.¹
Now consider this: You pay 40,000 Turkish Lira in rent per month. What will that figure be in five years?
10-Year Rental Calculation: A Picture That Will Surprise You
The following table was prepared assuming a 30% annual rent increase. This rate is below the actual average of the last three years.¹ As shown in Table 1.1, the rent burden, which initially seems bearable, transforms into a very different picture in the 10th year.
Tablo 1.1: 2025-2034 Yılları Arasında Tahmini Kira Artışı (Başlangıç: 40.000 ₺/Ay, Yıllık %30 Artış).
| Year | Monthly Rent | Annual Total |
|---|---|---|
| 2025 | 40,000 TL | 480,000 TL |
| 2026 | 52,000 TL | 624,000 TL |
| 2027 | 67,600 TL | 811,200 TL |
| 2028 | 87,880 TL | 1,054,560 TL |
| 2029 | 114,244 TL | 1,370,928 ₺ |
| 2030 | 148,517 TL | 1,782,207 ₺ |
| 2031 | 193,072 TL | 2,316,869 TL |
| 2032 | 250,994 TL | 3,011,929 TL |
| 2033 | 326,292 TL | 3,915,508 TL |
| 2034 | 424,180 ₺ | 5,090,160 ₺ |
Mathematical calculation; increase rate is the average of the Turkish Statistical Institute (TÜİK) rent index for 2022-2024, and the initial rent. Sahibinden.com Market outlook 2025. Actual growth rate may vary by year and region.¹⁴
Total rent payments over 10 years: approximately ₺20,457,361
And in the end, after that 20 million lira, you have nothing. Every penny you paid financed someone else's property.
Figure 1.1 shows the graphical trend of this table; the growth over the years reveals a more striking picture than just the numbers.
Figure 1.1: Trend of Total Annual Rent Payments in the Period 2025-2034. Rent that seems bearable in the early years reaches 5 million Turkish Lira annually in the 10th year; this projection is based on an assumption below the average actual increase.¹⁴
The Same Ten Years with a Mortgage: What Would Be Different?
Now let's look at the same scenario from a mortgage perspective. Suppose you buy an apartment worth 3,500,000 TL in Esenyurt or Beylikdüzü in 2025.
- Peşinat (%20): 700,000 ₺³
- Loan amount: 2,800,000 TL
- Maturity: 10 years
- Interest rate: %48 (2025 piyasa ortalaması)²
- Monthly installment: approximately 113,000 TL
“"But the rent is 40,000 lira, the installments are 113,000 lira. It's much more expensive," you might say. You're right — for today.
What about 2029? That year your rent will have exceeded 114,000 Turkish Lira. Your loan installment with fixed interest will still be 113,000 Turkish Lira. The gap has closed — and from that point on, each year the rent will steadily exceed the installment.
In 2031? Your rent has exceeded 193,000 lira. Your loan is still 113,000 lira. Who is paying less now?
Figure 1.2 shows a comparative view of the 10-year trajectory of two payment curves.
Figure 1.2: 10-Year Comparison of Monthly Rent and Fixed Mortgage Installments. The blue curve represents the rent, and the dashed line represents the fixed installment; the intersection point corresponds to the year 2029, after which the monthly rent cost rapidly exceeds the fixed installment amount.¹²⁴
And in 2035 — just 10 years from now — when you pay off your loan completely, you'll have a debt-free property with the title deed in your name. The landlord, on the other hand, will only have thousands of bills piled up.
Moreover, there's another significant advantage to mortgage loans: if you opt for a fixed interest rate, inflation works in your favor. A monthly installment of 2,000 TL ten years ago seems "ridiculous" today. The same logic will apply to your installments in 2033-2035.
Huge savings in the short term: Taking out the same loan for 10 years instead of 20 years hardly changes your monthly payment at these interest rates (112,000 TL instead of 113,000 TL — only about ~1,000 TL difference per month). But the total amount you will pay decreases from 26.9 million TL to 13.6 million TL. So by paying 1,000 TL more per month, you save 13 million TL in interest and own your home 10 years earlier, debt-free.
Real-world examples from three cities.
Istanbul — Esenyurt / Beylikdüzü
As shown in Table 1.2, in price-sensitive areas of Istanbul, rental and loan options diverge significantly from each other over a 10-year perspective.
Table 1.2: Istanbul (Esenyurt/Beylikdüzü) — Ten-Year Comparison of Rent and Loan Options.
Matematiksel hesaplama; faiz: TCMB (Türkiye Cumhuriyet Merkez Bankası) konut kredisi ağırlıklı ort. 2025, peşinat kuralı: BDDK (Bankacılık Düzenleme ve Denetleme Kurumu) LTV (Loan-to-Value) %80, kira: Sahibinden.com Market observation 2025. Representative scenario, individual conditions may vary.²³⁴
Figure 1.3 shows a visual comparison of the table.
Figure 1.3: Total Cost and Asset Comparison of Lease and Loan Options After 10 Years (Istanbul, Representative Scenario). The graph shows the net results of the two scenarios after 10 years: the renter has made higher total payments and has no assets left; the loan holder has made lower payments and owns a debt-free property.²³⁴
Antalya — Muratpaşa
In Antalya, the monthly installment for a 2+1 apartment worth 2,800,000 TL is approximately 90,000 TL. Current rent is 22,000-28,000 TL.⁴ The difference seems significant, but rent increases in Antalya reached 52% in 2024.¹ A turning point will be reached within a few years.
Izmir — Bornova / Gaziemir
In Izmir, the monthly installment for an apartment valued at 2,200,000 TL is approximately 71,000 TL. The current average rent is 18,000-24,000 TL. While the rent-loan balance in Izmir seems to favor rent for a while, the picture changes completely in a 5-7 year perspective.
Rent or Loan: These Are Your Decision Criteria
Every situation is different. We're not saying "take out a loan" or "rent" unconditionally. But you can make your own decision by looking at these criteria.
Seriously consider taking out a loan if:
Renting might make sense if:
I'm having trouble making a down payment. What can I do?
The biggest obstacle preventing many people from using a loan is the down payment. For an apartment worth 3,500,000 TL, a 20% down payment means 700,000 TL. That's a significant amount.
But realize this: the money you “save” each year with rent increases is actually disappearing. If you had invested that money in savings, you could have built up a substantial fund for a down payment within 2-3 years.
A practical roadmap:
Frequently Asked Questions
If I take out a loan instead of renting, will I pay much more each month?
Initially, yes, the installment will be higher than the rent. But with a fixed-interest loan, the installment remains constant; rent increases every year. Based on average calculations for Istanbul, it will take approximately 4-5 years (around 2029) for the loan installment to catch up and surpass the rent. After that, you'll have a clear advantage in both monthly payments and property ownership.
Interest rates are too high. If I wait until they fall, can't I take out a loan?
When interest rates fall, housing prices go up — that's how it's always worked historically. Waiting for the "perfect time" often means waiting for years, while continuing to pay rent. Plus, you can restructure your expensive loan today when interest rates fall.
Doesn't renting have any advantages at all?
Yes, there are advantages like relocation flexibility, low initial costs, and exemption from large maintenance expenses. However, these advantages are only valid in the short term. In a 5-10 year perspective, the financial picture is unfavorable for renting.
Should I choose a 10-year or 20-year term?
Yüksek faiz dönemlerinde bu sorunun cevabı net: mümkünse kısa vade. Çünkü %48 gibi oranlarda aylık taksit, vadeyi 20 yıldan 10 yıla çekseniz bile neredeyse hiç değişmiyor (örneğimizde ayda yalnızca ~1.000 ₺ fark). Buna karşılık toplam ödeme 26,9 milyon liradan 13,6 milyon liraya düşüyor ve eve 10 yıl erken, borçsuz sahip oluyorsunuz. Bütçeniz aylık taksidi kaldırıyorsa kısa vade her zaman daha kârlıdır.
What is required for a home loan application?
Required documents include proof of regular income, bank statements from the last 3 months, identity card, property appraisal report, and down payment. Your Findeks credit score also directly affects the interest rate. Seeking expert assistance will speed up the process.
Conclusion: Do the math, then decide.
Rent versus loan is a personal matter. But answering without doing the math often leads to the wrong decision. The rent you pay today may seem "cheap," but you won't be able to say the same thing in 10 years.
Would you like to have a calculation done for your own situation? The expert team at Turkish Properties evaluates your current rental burden and purchasing potential together. Contact us via DM or WhatsApp — let us prepare a customized analysis for you.
SOURCES
- Turkish Statistical Institute (TÜİK) — Consumer Price Index Rent Subgroup (2022-2024 figures). tuik.gov.tr
- Central Bank of Turkey (TCMB) — Weighted Average Interest Rates for Home Loans, 2025-2026. evds2.tcmb.gov.tr
- BDDK — Konut Finansmanına Yönelik Kredi Politikası: LTV (Loan-to-Value) Oranı Uygulaması — azami %80. bddk.org.tr
- Sahibinden.com / Hepsiemlak — Istanbul, Antalya and Izmir Rental Housing Market Data, 2025–2026; market observation. sahibinden.com · hepsiemlak.com
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