The Turkish economy is in pressing need of reform and repair

A COUPLE OF years ago Mehmet Arslan, an architect in his late 30s, and his wife Mediha could afford to buy a flat in Istanbul. No longer. Mr Arslan’s salary rose by 30% in the past year, but inflation has been at least twice that. House prices have soared by even more, the result of higher construction costs, a low housing stock, and a spike in demand, mostly from Turks hoping to protect their savings from inflation. In the 12 months to October, property prices in Istanbul shot up by 241%, according to Endeksa, a consultancy. Mr Arslan’s salary now barely covers the rent and other living expenses. “We’ve given up hope of owning a house,” he says.