An Empirical Analysis of Gentrification in Istanbul

Abstract

This paper begins by investigating the occurrence of gentrification in Istanbul during the period of 2008 and 2017, through the application of dynamic system/difference generalized method of moments estimation techniques. Our findings reveal that gentrification seems to have taken hold with the processes of urban regeneration that began in 2012. Additional associations between such parameters as housing price/rent growth, demographic changes, enterprise growth, and political administration (that is, whether the district is overseen by the opposition party or not) are tested through the use of REIDIN sales and rent indices, along with Turkish Statistical Institute data sets for 25 districts in Istanbul and 19 city-centre districts. The results demonstrate that gentrification is closely related to demographics/age and political administration. Overall, while house price/rent growth and enterprise growth are not observed to have an impact on gentrification, the findings of this study reveal that the association between housing prices and gentrification is positive only in those districts governed by the opposition party. The study thus raises questions about the relationship between political attitudes and gentrification in Turkey.