Rent, home prices in Türkiye drop in real terms

In constant dollars, accounting for inflation, rental fees and housing costs decreased in February compared to January in the top three urban areas of Türkiye

The uptick in rental fees and housing costs remained lower than the monthly inflation rate, with consumer prices rising by 4.53% in February, according to a report from Istanbul-based Bahcesehir University’s Economic and Social Research Center (BETAM).

As mentioned in the report, the price decrease has persisted for eight consecutive months in terms of real value. 

The real estate price index, which had been climbing since May 2020, started declining in July 2023 and this downward trend continued into February, as per the research. 

Nationwide, prices fell by 12.1%. Istanbul saw the steepest decline at 14.6%, followed by Izmir at 11.8%. Ankara was the only major city that bucked the trend, with a minimal price decrease of just 0.8%.

In terms of current prices, the annual increment was 46.9% in February, marking an 8.8-point decrease from the previous month’s year-on-year increase. 

The average home price in Türkiye stood at TL 27,095 ($842) per square meter. Istanbul and Ankara saw year-on-year home price increases of 42.7% and 65.7%, respectively, while Izmir experienced a 47.4% increase.

Regarding rental rates, the report mentioned that rents across Türkiye decreased by 1.1% in February compared to the previous year. 

In Istanbul, rents dropped by 4.9% from February 2023 to TL 185.7 per square meter. However, they increased by 29.7% in Ankara and 13.2% in Izmir, reaching TL 131.6 and TL 160, respectively, according to the study. 

Source: Newsroom