Domestic Housing Prices Continued to Increase in Turkey

Domestic housing prices continued to increase in Turkey. The Housing Price Index rose 2 percent in April compared to the previous month.

The Housing Price Index, which shows the price changes in the domestic housing market, increased by 2 percent to 168.8 in April compared to the previous month and increased by 32.4 percent in nominal terms and 13.0 percent in real terms compared to the same month of the previous year. Compared to the previous month, the Housing Price Index increased by 1.5 percent in Istanbul, 1.5 percent in Ankara and 1.4 percent in Izmir, respectively, in April. Compared to the same month of the previous year, index values ​​increased by 28.6, 29.8 and 34.3 percent, respectively, in Istanbul, Ankara and Izmir. In this index prepared monthly by the CBRT (Central Bank of the Republic of Turkey), the price increase in the domestic housing market was calculated and while the increase continued on a monthly basis, the price increase across the country was recorded as 32.4 percent in nominal terms compared to April of last year. When the housing sales are analyzed, while the sales were 95,863 according to the April data of TURKSTAT, 59 thousand 166 houses were sold in May. The record decrease in sales during the quarantine period was effective in the increase in the change in sales rate in April and May due to the base effect. While no significant increase was observed on the sales front, prices continued to rise, especially with the effect of construction costs and exchange rates. The construction cost index report of TURKSTAT also revealed that the sectoral rise has accelerated. According to the April report, the construction cost index increased by 35.48 percent annually. Again in the last year, the material index increased by 43.07 percent and the labor index increased by 20.62 percent compared to the same month of the previous year.