Report: Home prices in Turkey decreasing
The decline in housing prices continues for the sixth consecutive month nationwide in Turkey. Although housing demand increased after four months, for the first time in a long time, the annual real prices decreased in Izmir.
The ‘Sahibinden Rental and For Sale Housing Market Outlook’ research, prepared in collaboration between sahibinden.com and Bahçeşehir University’s Center for Economic and Social Research (BETAM), has released its January data.
According to the report, the decline in sales prices has been ongoing for the past six months. Due to the decrease in prices, the annual growth rate in real prices also dropped to 0.2% nationwide, and in Ankara, it declined to 12.9%. While Istanbul experienced a 6.1% annual decline in real prices, Izmir saw a yearly real price decrease for the first time in a long while.
The number of advertisements for houses for sale decreased both nationwide and in the three major cities. The supply of houses for sale decreased by 4.8% nationwide, 4.5% in Istanbul, 2.5% in Ankara, and 6.9% in Izmir compared to the previous month.
After a four-month decline, there was a rise in housing demand. Following a sharp decrease in demand after the earthquakes in February, it increased in July and then decreased until November. However, in December, housing demand rose by 5.5% compared to November, reaching 93.6.
Throughout Turkey, in Istanbul and Izmir, the inflation-adjusted real rental prices increased due to the monthly increase in current rental prices being higher than inflation. The average square meter price for rental houses advertised on the Sahibinden platform nationwide was 132.7 Turkish liras.
The slowdown in real rent increases
According to the report, inflation-adjusted real rent increases have been decreasing for a long time nationwide in Turkey. The annual real rent increase decreased by 4.8 points in December compared to November, reaching 13.5%.
In December, the number of rental housing advertisements decreased by 5.1% nationwide, 3.4% in Istanbul, 5.9% in Ankara, and 5.5% in Izmir.
