In Turkey, real estate prices have been on a downward trend in real terms for eight months, with experts expecting this trend to continue for a while. The real decrease in housing prices has spurred investors to take action, resulting in a record 140,919 housing sales in September, the highest level in 21 months.
According to the Turkish Central Bank’s House Price Index (KFE), the annual real decline reached 14.7% in September, marking the eighth month of this ongoing real depreciation trend since January.
A real estate economist predicts that as long as real interest rates remain above inflation, the real decrease in house prices will continue. He highlighted that gross rental multipliers had fallen to 15 years, and amortization periods had shortened, reviving interest among investors seeking rental income.
A professor added that recent increases in housing supply, renewed buildings after the Kahramanmaraş earthquakes, rising interest rates, and rent cap regulations had all slowed price increases. He also noted that cost pressures and supply shortages remained a global issue.
President of GYODER, emphasized that real estate was a key investment instrument in Turkey. She explained that a 170% annual price increase had occurred in 2022 due to lower mortgage rates, while higher interest rates and financial constraints in 2023 had caused a drop in sales. She predicts that if these challenges ease, demand for real estate investments will rise again, creating upward pressure on prices. (sözcü)
