Istanbul Has Europe's Worst Rent-to-Salary Ratio

A report published by Deutsche Bank Research Institute shows that rents in Istanbul have outpaced salaries. According to the study, the rent for a one-bedroom apartment in central Istanbul is 101.52% higher than the average net salary. This rate places Istanbul among six cities worldwide where salaries fail to cover rents.

Rental Expenses Exceed Salary: Istanbul Ranks 41st on List
According to EKOTURK, in a study comparing 46 world cities, Istanbul ranked 41st in terms of salary-to-rent balance. Along with Istanbul, Sao Paulo, Lisbon, Mexico City, Bogota and Cairo are among cities where salaries are insufficient for rent. In these cities, cost of living, particularly housing expenses, creates a significant burden.

Worst Income-Rent Balance in Europe in Istanbul
According to joint data from Eurostat and Deutsche Bank, Istanbul is among Europe's cities with the lowest average net salary. Against an average salary of EUR 855, the rent for a one-bedroom apartment in the city centre exceeds this amount. This situation triggers a housing crisis, particularly for low-income workers and those earning minimum wage.

Lowest and Highest Salaries in Europe
Salaries across Europe show significant variation by country. For example, the average net salary in Geneva, Switzerland is EUR 7,307, while in Istanbul this figure is only EUR 855. In Zurich, average income is calculated at EUR 7,127. This difference directly determines the impact of housing expenses on salary.

What Remains After Rent?
According to the research, after paying rent in Istanbul, a worker has no money left. 101.52% of salary goes to rent, meaning a person must generate additional income to sustain themselves. An average deficit of EUR 13 (approximately TRY 614) emerges. On the other hand, in Lisbon this deficit rises to EUR 202 (approximately TRY 9,534).

Lowest Rent Ratio in Geneva
Geneva stands out as the European city with the lowest rent-to-salary ratio. In the city, only 29% of salary goes to rent. It is followed by high-income cities such as Luxembourg, Zurich, Helsinki and Frankfurt. In these cities, high salaries reduce the relative impact of rents and improve quality of life.

Rent Ratios in European Capitals
In the capitals of Europe's five largest economies, rental burden is distributed as follows: Berlin 40%, Paris 45%, London 75%, Madrid 74% and Rome 65%. These ratios demonstrate the need for serious balance between salaries and rent.

Cities with Salary-to-Rent Balance Worldwide
Among cities worldwide where salaries exceed rent and disposable income is high, Geneva and Zurich lead the way. In Geneva, income remaining after rent is around EUR 5,174, while in Zurich it is around EUR 4,638. This shows that in countries with high economic stability and purchasing power, housing problems are experienced to a relatively lesser extent.

The gap between rent and salary has become a major problem, particularly in cities of developing countries. The Istanbul example underscores Turkey's housing crisis and income insufficiency once again.