The average price for houses in Turkey increased by 84% and exceeded three million Turkish liras, according to an analysis by real-estate appraisal company Endeksa based on state-run Turkish Statistical Institute's (TÜİK) housing prices data for December 2023.
The report indicated that house sales in December 2023 decreased by 33% compared to the same month of the previous year.
Istanbul was the province with the most house sales in December, with 23.700 sales constituting 17% of the overall sales in Turkey. The average house price in the metropolis increased by 73% to 4.2 million liras (140,000 dollars).
The capital Ankara and Aegean İzmir provinces followed Istanbul with the most real estate sales in December 2023. The three provinces made up 30% of all house sales in Turkey.
The report noted that in December, house prices appreciated the most in the southeastern Hatay, eastern Elazığ, and Black Sea Ordu provinces of Turkey. Hatay was one of the most impacted provinces by the Feb. 6 earthquakes, where over 13,000 buildings collapsed and over 75,000 buildings were critically damaged according to official reports.
House prices in Hatay increased by 124% in a year, according to data from TÜİK. The average price was 2.76 million liras (91,000 dollars) in the province.
The report also noted that house sales to foreigners decreased by 68% since December 2022. Turkey's citizenship via investment scheme offers foreign nationals who obtain real estate worth over 400,000 dollars eligibility for Turkish citizenship.
Although TÜİK data suggested a yearly increase in house prices, the inflation-adjusted values prepared by online marketplace Sahibinden and the Bahçeşehir University Center for Economic and Social Research (BETAM) revealed a downward trend in real prices for the last six months, according to reporting by online news outlet Diken.
The report suggests that the average yearly increase in real prices of houses was a mere 0.2%. Real prices of houses in Istanbul and İzmir provinces decreased as well.
TÜİK had reported the annual inflation rate as 64,77% for 2023, marking the highest annual inflation levels of the year for the government data. Whereas unofficial data provided by Turkey's Inflation Research Group (ENAG), an independent institution established in 2020 to monitor the country's inflation, the annual consumer price index in Turkey reached 127,21%.