Hafize Gaye Erkan, who assumed her role in June after a successful career spanning two decades in the United States, is grappling with the stark reality of Istanbul’s exorbitant living costs. The 44-year-old professional, with an impressive background that includes stints at renowned firms like Goldman Sachs and First Republic Bank, recently shared her struggle with finding affordable accommodation in Istanbul.
In an interview with Hurriyet newspaper, Erkan revealed, “We haven’t found a home in Istanbul. It’s terribly expensive. We’ve moved in with my parents.” This admission highlights the challenges faced by many young individuals in the city, contending with soaring housing prices and the resulting difficulties in securing lodgings.
Erkan, surprised by the cost disparity, questioned, “Is it possible that Istanbul has gotten more expensive than Manhattan?” The comparison underscores the severity of the situation in Istanbul, where year-on-year inflation reached a staggering 61 percent in November. President Recep Tayyip Erdogan’s decision to let the lira weaken further, coupled with promises of a new team of economists with Wall Street experience to address the economic crisis, has not mitigated the challenges faced by residents.
In an attempt to address the growing discontent, officials imposed a cap of 25 percent on rent increases. However, experts argue that this measure has intensified housing tensions, as property owners seek to evict tenants, sometimes through fraudulent means, to set new and higher rents.
In response to the economic turmoil, the central bank recently implemented a significant hike in benchmark lending rates, reaching 40 percent, aiming to bring inflation under control. Erkan acknowledged these measures, stating, “We’re nearing the end of our monetary tightening measures.”
