Residential Property Price Index Declined in Real Terms in September

According to September data released by the Central Bank of the Republic of Turkey, the residential property price index increased by 22.3 percent nominally on an annual basis, but recorded a real decline of 5.7 percent. Over the same period, the new tenant rent index also fell by 2.4 percent in annual real terms.

Real Change in Residential Property Prices

The residential property price index, which tracks price changes of housing in Turkey adjusted for quality effects, increased by 1.2 percent in September compared to the previous month, reaching the level of 239.4. While the annual nominal increase was 22.3 percent, a real decrease of 5.7 percent was recorded.

Price Movements in Major Cities

In September, residential property prices increased on a monthly basis by 2 percent in Istanbul, 0.1 percent in Ankara, and 1 percent in Izmir. On an annual basis, Istanbul was the region with the highest increase at 26.8 percent, while Ankara recorded an increase of 22 percent and Izmir 21 percent.

New Tenant Rent Index Data

The new tenant rent index increased by 2.1 percent in September compared to the previous month. Rising nominally by 26.6 percent on an annual basis, the index exhibited a real decline of 2.4 percent. Rent increases in Istanbul stood at a monthly level of 3.5 percent.

Regional Differences

According to the Nomenclature of Territorial Units for Statistics, the lowest annual increase in residential property prices was observed in the Edirne, Kırklareli, and Tekirdağ region at 15.3 percent. As for the new tenant rent index, the same region was where the lowest annual increase occurred at 18.8 percent.