Turkiye’s Home Prices Fall in Real Terms for 8th Straight Month

Türkiye’s home prices continued to rise in nominal terms in July but fell further behind inflation, marking an eighth consecutive month of declines in real terms, official data showed Tuesday.

The residential property price index rose 1.5 percentmonth-over-month in July and increased 25 percent from a year earlier in nominal terms, the Central Bank of the Republic of Türkiye (CBRT) said.

Adjusted for inflation, however, home prices fell 5.1 percent year-over-year. Annual consumer price index (CPI) stood at 31.75 percent in July.

Among Türkiye’s top three cities, price growth accelerated more strongly in Istanbul than in capital Ankara and western Izmir during the month.

Home prices rose 2.7 percent month-over-month in Istanbul, compared with 2.2 percent in Ankara and 0.5 percent in Izmir.

On a regional basis, the largest annual increase in the residential property price index was recorded in the Bingöl, Elazığ, Malatya, Tunceli, Van, Bitlis, Hakkari and Muş region, at 35.5 percent. The smallest annual increase was seen in Balıkesir and Çanakkale, at 16.4 percent.

The CBRT’s new tenant rent index, which tracks newly signed lease contracts, also showed a decline in real terms.

The index rose 1.9 percentmonth-over-month in July and 28.4 percent year-over-year in nominal terms, but declined 2.6 percent in real terms.

Regional rental trends diverged from the housing market. The Eastern Black Sea region recorded the strongest annual increase, with rents rising 35 percent, ahead of Istanbul, Ankara and Izmir.