ISTANBUL – May 2025 | A recent analysis by BETAM (Bahcesehir University Center for Economic and Social Research) reveals that a housing bubble emerged in every region of Türkiye following the pandemic, with most of these bubbles now deflating due to tight monetary policy measures.
In its public statement, BETAM emphasized the critical importance of closely monitoring the housing market for economic policymaking:
“Monitoring the housing market is crucial for economic policy design. Detecting and curbing excessive price movements in this sector can enhance societal welfare,” the statement said.
Pandemic-Era Price Surges Identified as Bubble Formation
The study evaluates whether the sharp increases in housing prices observed globally, and especially in Türkiye, post-pandemic represent a bubble—and if that bubble is still ongoing.
Using region-level Housing Price Index data published by the Central Bank of the Republic of Türkiye (TCMB) from January 2010 to March 2025, adjusted for inflation, BETAM’s research concluded that:
“Housing bubbles formed in every region of Türkiye following the pandemic. However, a significant portion of these bubbles have started to deflate due to tight monetary policy.”
Only Two Regional Bubbles Persist
Out of the 19 regions monitored by the TCMB, BETAM found that housing bubbles remain only in two areas:
- TRA Region: Erzurum, Erzincan, Bayburt, Agri, Kars, Igdir, and Ardahan
- TRB Region: Malatya, Elazig, Bingol, Tunceli, Van, Mus, Bitlis, and Hakkari
“In all other regions, and nationwide, housing bubbles appear to be deflating,” the report noted.
Source: Foreks/ Prepared by: İlayda Gök