Rent and home prices decline in real terms across Türkiye

ISTANBUL

In real terms, adjusted to inflation, rent and home prices declined in February compared to January across Türkiye and the country’s three largest cities, according to a report from Istanbul-based Bahçeşehir University’s Economic and Social Research Center (BETAM).

The increases in rent and home prices remained below the monthly inflation, said the report, while consumer prices advanced 4.53 percent month-on-month in February.

In real terms, the decline in prices has been continuing for eight months, the report added.

The real home price index, which had been on the rise since May 2020, has been on a downward path since July 2023 and this decline continued into February, according to the study.

Across the country, home prices in real terms fell by 12.1 percent in February from a year ago, with prices declining by 14.6 percent annually in Istanbul, and down 11.8 percent in the western province of İzmir, said the report. In Ankara, the decline in prices was only 0.8 percent.

At current prices, the annual increase was 46.9 percent in February, down 8.8 points from the year-on-year rise in the previous month.

At current prices, the average home price was 27,095 Turkish Liras ($842) /square meter in Türkiye. Home prices in Istanbul and Ankara rose by 42.7 percent and 65.7 percent annually, respectively. In İzmir the increase was 47.4 percent.

In real terms, rent prices across Türkiye declined by 1.1 percent last month from a year ago, said the report.

In Istanbul, rents were down 4.9 percent from February 2023 to 185.7 liras/square meter. But they increased 29.7 percent in Ankara and 13.2 percent in İzmir to 131.6 liras and 160 liras, respectively, according to the study.