Türkiye’s residential property price index (RPPI) measuring the quality-adjusted price changes of homes increased by 95.9% in June compared to the same period of the previous year, yet easing to almost 1.5-year low, official data showed Wednesday.
According to data from the Central Bank of the Republic of Türkiye (CBRT), although the monthly increase in housing prices gained momentum in June compared to the previous month, the annual increase in housing prices experienced double-digit growth for the first time since February 2022.
While the RPPI increased by 95.9% on an annual basis, it surged by 4.8% month on month in June, the data showed. The real increase in this period was 38.0%.
In June, housing prices in Istanbul, the country’s largest city and home to around 16 million increased by 85% compared to the previous year. The rise in Izmir, the third largest city was recorded at 100% while among the three big cities, the capital Ankara came to the fore with the increase measured in June.
Housing prices in Ankara increased by 106% compared to the same period of the last year, the data highlighted.
Although remaining at high levels, the increase in house prices has been easing over recent months, according to official data. According to the central bank the RPPI, surged an annual 121.25% in May.
Amid a high inflation environment, the annual increase in housing prices reached a record level of 189% in September. Inflation had leaped to a 25-year high at around 85% last October but has regressed since touching 38.2% in the second quarter of 2023 before rising again to nearly 48% last month because of the Turkish lira’s decline and various tax hikes.
According to the Turkish Statistical Insititute, (TurkStat’s) report earlier this week – housing sales in Türkiye rebounded in July after five consecutive back-to-back declines, while the purchases by foreigners maintained a downward trend.
Some 109,548 residential properties exchanged hands last month, the TurkStat said Tuesday, marking a 16.7% year-over-year increase, driven in part by the low base effect.