Regulation on Excessive Price Increases in Real Estate Listings Sparks Discussion – Vezir Agency
Significant Increase in Online Listing Costs Over the Past Five Years
In recent years, online property listing platforms have dramatically escalated their fees, with charges per listing soaring up to 25 times higher than they were five years ago. This escalation has placed substantial financial strain on both real estate professionals and individual property owners. Back in 2020, real estate agencies paid around 8,000 TL annually for their listing packages; however, today, these costs can reach as high as 200,000 TL. Meanwhile, individual advertisers typically face a fee of approximately 3,000 TL for a single property listing.
Listing Fees Are Being Passed Down to Tenants
One noteworthy consequence of rising listing fees is that landlords are beginning to transfer these costs to tenants. For example, a landlord seeking to rent out a property priced at 15,000 TL might incur a listing fee of 3,000 TL. This additional expense is increasingly being claimed from prospective tenants, thereby indirectly affecting rental prices and affordability.
Impact on Real Estate Industry Costs and Discussions on Regulation
The escalating listing fees are deeply influencing operational costs within the real estate sector. Industry experts are advocating for the establishment of a maximum cap on listing prices to prevent further financial burden. Mustafa Hakan Özelmacıklı, a seasoned real estate analyst, shared his insights with Milliyet newspaper:
- "Price hikes on online listing platforms are becoming more aggressive daily. Many listing packages used by real estate agencies are subject to various restrictions, and their prices have increased well beyond inflation rates. This situation significantly impacts the expenses of numerous real estate firms."
Calls for Regulatory Limits from Industry Professionals
Özelmacıklı emphasized that a typical real estate agent listing about 200 properties now faces fees around 85,000 TL. He projected that this amount will decrease to 42,000 TL in 2024, 21,000 TL in 2023, 8,000 TL in 2022, and 4,250 TL in 2021. He added:
"Real estate companies are urging for a ceiling regulation because they cannot sell every property they list. The increases enforced by online listing portals are deemed exorbitant. We are communicating proposals for limiting these hikes to the Ministry and anticipate some regulatory action soon."Market Consolidation and Reduced Competition
Historically, the industry featured around 5 to 6 different listing portals, but this number has now dwindled. Özelmacıklı commented:
"The number of accessible listing portals for real estate firms and property owners was once around five or six, but some platforms have shut down. This reduction has created a challenging environment for competition, effectively consolidating the market. We are advocating for a systemic infrastructure similar to MLS systems abroad, where real estate companies can share listings securely and efficiently, authorized by relevant authorities."This article has been created, translated, and reviewed with the assistance of artificial intelligence, supported by an editor or author. For more information, please refer to our Terms and Conditions. Vezir Agency