Commercial property prices rise 98 percent: Official data

ANKARA

The commercial property prices in Türkiye increased by 98.2 percent in the final quarter of 2023 from the same period of the previous year, the Central Bank has said.

The bank started to publish the commercial property prices for the first time on Feb. 26.

The commercial property price index (CPPI) registered a 12.5 percent increase from the third quarter, while the annual increase in real terms was 21.8 percent.

The annual increase in the CPPI slowed from the third quarter’s 106 percent.

In Istanbul, commercial property prices rose nearly 81 percent year-on-year. In the capital Ankara and the western province of İzmir, the annual increases were 110.2 percent and 110 percent, respectively.

The retail property price index climbed 99 percent in the fourth quarter of 2023 from a year earlier and 13 percent from the third quarter of last year. In real terms, the increase in the index was 22.2 percent on an annual basis. In the third quarter of last year, the retail property prices rose nearly 106 percent year-on-year.

Office prices across Türkiye rose by 94.2 percent year-on-year, the annual increase was 19.3 percent in real terms. 

The rise in office prices increased at a higher rate after the third quarter of 2021, however, this rise fell slightly below the increase in retail property prices in the last quarter of 2023, economists at the Central Bank in a study published on the bank’s website.

This divergence favoring office prices over the last two years may have been driven by the recovery in the demand for offices as the effects of the pandemic have passed and the cross-price effect of the increase in house prices on office prices due to high convertibility of vacant offices into residential spaces, they concluded.