Türkiye among top 3 countries with sharpest housing prices decline in 2024
Skyscrapers in the Maslak business and financial district are seen behind the residential apartment blocks in Istanbul, Türkiye, Jan. 23, 2020. (Reuters Photo)
Türkiye experienced one of the most significant declines in housing prices in the first quarter of 2024, with a real-term decrease of 8.9%, according to the Bank for International Settlements (BIS).
This places Türkiye among the three countries with the steepest drops in housing prices.
BIS data indicates that global housing prices fell by 1% in real terms compared to the same period in 2023.
The country with the largest decline was Luxembourg, where prices dropped by 13.7%, followed by Hong Kong with a 13.2% decrease.
After a period of rising housing prices during the pandemic, global prices began to decline in the third quarter of 2022.
The decrease was 3.1% in the first quarter of 2023, with the pace of decline slowing since then.
In contrast, the United Arab Emirates saw the largest increase in housing prices in the first quarter of 2024 – with a rise of 15.6%. Poland and Bulgaria also experienced significant increases, with prices rising by 14.6% and 12.2%, respectively.
Türkiye’s market trends
Türkiye’s housing market has shown a dramatic reversal. During the pandemic, Türkiye saw the most significant real increase in housing prices worldwide, with a 59.6% year-over-year rise in the third quarter of 2022.
However, in the first quarter of 2024, this trend reversed, marking the first decline. Despite this drop, Türkiye has witnessed the highest rise in housing prices since the end of 2019, with a real increase of 119.4% over this period.
In developed economies, the decline in housing prices has nearly halted, with a minimal 0.3% year-on-year decrease.
In contrast, emerging economies have faced a more pronounced decline, with a 1.6% drop, largely driven by developments in Asian countries.
