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Turkey’s Illusion of Prosperity: The Asset Price Boom and Rising Inequality
Turkey’s recent asset-price boom has enriched a small elite while exacerbating wealth inequality and social immobility, leaving the majority of citizens facing rising living costs and stagnant wages.
According to a report by the UK-based real estate consultancy Knight Frank, in 2023, Turkey led the global surge in the number of “ultra-rich” individuals. Yet, behind this apparent success story lies a stark reality. The World Inequality Report 2022 found that the richest 10% in Turkey earn 23 times more than the bottom 50%, with the wealthiest controlling 54% of the nation’s income. This data paints a picture of deep economic disparity, where the facade of prosperity belies a far more troubling truth.
While Turkey has experienced a boom in asset prices in recent years—creating an illusion of economic vitality—this prosperity narrative is deeply flawed. A narrow elite has reaped the rewards of soaring real estate, stock, and business values. At the same time, the vast majority of Turkish citizens grapple with stagnant wages, rising living costs, and an ever-widening wealth gap.
At the core of this asset-price surge is the concentration of wealth among the country’s elite. This boom disproportionately benefits the wealthy, who are far more likely to hold valuable assets. The cycle is self-reinforcing: as the ultra-rich invest in appreciating assets, prices continue to rise, enriching them further—not necessarily through economic productivity, but simply through the ownership of capital. Meanwhile, the average Turkish citizen is left behind, unable to compete in a market increasingly controlled by those with entrenched wealth.
Perhaps the most visible consequence of this dynamic is the skyrocketing cost of living, especially in urban centers like Istanbul, Ankara, and Izmir. Housing prices have soared so much that, for many, owning or renting a home has become an unattainable dream. Data from the Organization for Economic Co-operation and Development (OECD) highlights Turkey as the country with the highest increases in both rent and property prices among OECD nations.
Stagnant wages compound this squeeze on living standards. While asset values have surged, wages have lagged far behind inflation, eroding the purchasing power of ordinary citizens. The Turkish lira has depreciated sharply, and inflation remains in double digits, further widening the gap between the wealthy and the working class.
The growing divide between rich and poor is also choking social mobility. Once, education, entrepreneurship, and hard work were seen as viable pathways to success in Turkey. Today, that narrative is fading. The current economic climate is creating a rigid class structure where the wealthy pass on their advantages to their children while opportunities for upward mobility are shrinking. This has led to rising resentment, particularly among the youth, who now view emigration as their only option for a better future.
Government policies have significantly exacerbated these inequalities. Rather than addressing the root causes of the wealth gap, the government has enacted tax policies favoring capital gains over labor income, benefiting those who already hold significant assets. These choices have only deepened the divide, with the government appearing more aligned with the interests of the ultra-wealthy than the broader population.
Turkey’s current economic trajectory is unsustainable. A model that prioritizes the enrichment of a select few while neglecting the needs of the majority will only lead to further social and economic instability. To ensure a more equitable future, the country needs a new economic paradigm that promotes inclusive growth, restores social mobility, and provides the well-being of all its citizens, not just the privileged elite.
This article was originally posted in Modern Diplomacy.
Begüm Burak is an independent researcher focusing on Turkey, human rights, democracy,online freedoms and evolving AI technology's impact on politics and education. She has also been awarded Middle East Association's MESA Global Academy fellowship.