Turkey’s house prices increase by 86 percent annually in October

The Central Bank of Turkey's Residential Property Price Index (RPPI) was 1129.6 in October, which increased 3.8 percent monthly and 86.5 percent annually.

Monday December 18 2023 05:04 pm

Duvar English

In October 2023, Residential Property Price Index (RPPI) increased monthly by 3.8 percent, recorded an annual increase of 86.5 percent in nominal terms and 15.4 percent in real terms, according to Turkey’s Central Bank.

The RPPI (2017=100), which is calculated to monitor the quality-adjusted price changes of housing market in Turkey reached 1129.6 in October country-wide.

Looking at the monthly change in RPPI for the three major provinces, Istanbul, capital Ankara, and Aegean Izmir increased by 2.9, 4.7 and 3.3 percent, respectively. Compared to October 2022, the index increased by 74.4 percent in Istanbul, 101.5 percent in Ankara, and 80.1 percent in Izmir.

While the average unit price (TL/m²) for a house was more than 30,000 Turkish lira countrywide, it was 44,000 liras in Istanbul, 35,000 liras in İzmir, and 23,000 for Ankara.

On the other hand, the biggest annual change was observed in the Black Sea provinces such as Kastamonu, Trabzon, or Ardahan.

The Central Bank also noted that the indices for Adıyaman, Malatya, Hatay, Kahramanmaraş, and Osmaniye provinces were kept constant starting from February 2023, after they were destroyed by the Feb. 6 earthquakes, due to an insufficient number of observations in these cities.

Nonetheless, this might led a somewhat misleading value in the index as it has been reported that housing prices in these provinces had skyrocketed after the earthquakes.

Central Bank Governor Hafize Gaye Erkan has recently stated that the rents in Istanbul were so high that she could not find a house and moved in with her mother.

According to RPPI, house prices began to rise more than 50 percent annually in July 2021, after the government began to lift COVID-19 restrictions.

This graph is taken from the Central Bank's report.