Housing Prices Rise Faster Than Inflation in May

The Turkish housing market saw another jump in prices this May, outpacing inflation for the month. According to the latest data released by the Central Bank of the Republic of Turkey, the House Price Index rose by 3.4 percent compared to the previous month. That’s well above the official monthly inflation rate, which was recorded at 1.53 percent.

While prices climbed in nominal terms, the picture looks a bit different over the long run. Over the past year, housing prices have increased by 32.3 percent on paper. However, when adjusted for inflation, they’ve actually fallen by 2.3 percent. So, despite the monthly gain, real estate hasn’t fully kept up with rising costs overall.

The Central Bank shared these figures through its House Price Index, which measures the change in property values across Turkey after adjusting for quality differences. As of May 2025, the index stood at 182.4.

Looking at the major cities, price movements varied slightly. In May, housing prices went up by 2.7 percent in Istanbul, 3.8 percent in Ankara, and 3.0 percent in Izmir, compared to the previous month. Over the year, the biggest jump was seen in Ankara with a 41.4 percent rise, followed by Istanbul at 32.6 percent and Izmir at 31.1 percent.

In short, while housing prices are still climbing, inflation-adjusted data suggests that their real value hasn’t increased quite as much as it may seem. For buyers and sellers alike, it’s a market worth watching closely.

Source: ekonomim.com