Annual rise in home prices continues to slow

ANKARA

The annual increase in the residential property price index (RPPI) continued to slow in February, the latest numbers from the Central Bank have shown.

The index advanced 58.3 percent year-on-year in the month, comparing favorably with the 68 percent rise in January.

In real terms, the index declined by 5.1 percent in February, when the annual inflation rate was 67.07 percent.

The monthly rise in the property price index also slowed from 2.3 percent in January to 2.2 percent in February.

The average unit price of residential properties across Türkiye was 31,365 Turkish Liras/square meter.

The RPPI for new dwellings increased by 57 percent in February from the same month of 2022, while the annual increase in the RPPI for existing dwellings was 58.8 percent, said the Central Bank.

In Istanbul, home prices rose by 45.6 percent from February 2023. The average unit price was 45,421 liras in the city.

In the capital Ankara and the western provinces of İzmir, the country’s third largest city, residential property prices increased by 72.9 percent and 57.4 percent, respectively.

Home sales increased by 17.3 percent annually in February to around 94,000 units, according to the data from Turkish Statistical Institute.

However, home sales declined 0.1 percent year-on-year in March to 105,394 units. Many experts link the weak sales in the housing market to higher costs of housing loans.

In March, mortgage-financed sales plunged 49 percent from a year ago to 12,880, accounting for only 12 percent of all home sales.

In the first three months of 2024, around 280,000 homes changed hands, pointing to a 1.3 percent decline from the same period of 2023.

In January-March, mortgaged home sales were down 53 percent from a year ago to 28,000 units.