Skyrocketing expenses in Istanbul push average family's budget up by 45%, reaching approximately $2,400 per month for a family of four.
Istanbul's Cost of Living Soars Amid Inflation and Housing Shortage
In a recent report, the Istanbul Planning Agency (IPA) revealed that the cost of living in Istanbul has experienced a significant increase in the last few years, outpacing wage growth and causing concern among residents.
As of July 2025, the monthly cost of living for a single person in Istanbul is approximately ₺96,599 ($2,370), while for a family of four, it is around ₺96,599 ($2,370). This represents a 45.15% increase compared to the same period in July 2024, when the monthly expense was ₺66,550 ($1,636).
The cost of living has been on an upward trajectory, with monthly increases of more than ₺3,000 ($73.7) from June 2025 alone. Over the past 30 months, living costs in Istanbul have more than tripled, from ₺29,429 ($723) in January 2023.
The increase in living costs is attributed to price rises in key expense categories such as rent, food, transportation, and energy. Housing prices, in particular, have seen a significant increase, with apartment purchase prices in central Istanbul climbing 103% from $1,492/m² in 2020 to $3,036/m² in 2025.
Consumer price inflation is high, with the average monthly cost of living reaching roughly ₺93,465 in June 2025, reflecting a 47.13% increase year-on-year. Despite these sharp increases, wage adjustments have been far more modest. Public servant wages rose about 16.67% in July 2025, and minimum wages were increased less decisively, leading to real income that cannot keep pace with living cost inflation.
The gap between wages and living costs has resulted in significant dissatisfaction among workers and unions, with warnings of strikes if government wage policies do not improve. For many workers, the monthly cost of living exceeds their income by a significant margin.
International economic comparisons, such as the Big Mac Index, highlight how living costs in Turkey are nearing US levels in dollar terms due to price increases and currency misalignment, even though income levels remain much lower. For example, the price of a Big Mac in Turkey rose 200% since 2022 to $5.59 in 2025, nearly matching US prices despite large income disparities.
In summary, while Istanbul remains affordable compared to many Western cities, its internal cost of living escalation far outpaces wage growth, eroding purchasing power and challenging household budgets in 2025. The Istanbul Planning Agency's data shows that living expenses have consistently outpaced wage growth in Istanbul.
References: 1. Cost of Living in Istanbul 2. Istanbul's Living Costs Soar Amid Inflation and Housing Shortage 3. Istanbul Real Estate Market Booms Amid Housing Shortage 4. Turkey's Big Mac Index 5. The Big Mac Index
- The rising cost of living in Istanbul, exacerbated by inflation, has sparked concerns among residents, particularly in the context of personal finance and business operations, as the monthly expenses for a single person and a family of four have increased significantly compared to previous years.
- The steep inflation in Turkey has escalated the cost of living in Istanbul, causing discontent among workers and unions who argue that wage policies need to improve to prevent strikes, as many workers struggle to meet their monthly expenses.
- Despite the soaring cost of living in Istanbul, the gap in living costs compared to Western cities is narrowing, as shown by international economic comparisons such as the Big Mac Index, raising questions about the alignment of the Turkish Lira with other global currencies in the realm of Nato finance and business affairs.
