Latest Changes in the Turkish Housing Market
Turkiye’s housing market has recently been experiencing significant changes in both houses for sale and rental. The “sahibindex Rental and Sale Housing Market Outlook” report, prepared in cooperation with sahibinden.com and Bahcesehir University Economic and Social Research Center (BETAM), discusses these changes in detail.
Declining Tendency in Prices
According to the report, the downward trend in house prices continues across Turkiye. Real sales prices have been decreasing across the country for the last seven months, and this decrease has reached -5.5% on an annual basis. A similar trend is observed in major cities such as Istanbul, Izmir and Ankara, with a decrease of -10.9% in Istanbul, -7% in Izmir and a more moderate decrease of -3.5% in Ankara.
Situation in Real Housing Prices
The real house price index, which has been increasing continuously since May 2020, has started to decline in the last six months. Especially in January, the value was reached to 177.7, with a decrease of 8.7 points compared to December. During this period, although the inflation rate was approximately 6.7%, the current increase in house prices was limited to 1.7%.
Price Dynamics in Three Metropolitan Cities
The downward trend in housing prices continues in Istanbul, Ankara and Izmir. In January, real housing prices in these cities decreased by 8.6, 9.2 and 7.5 points, respectively. These declines create significant negative pressure on real prices.
Latest Situation in Housing Supply and Demand
Housing supply has increased throughout the country and especially in Ankara and Izmir, but tends to decrease in Istanbul. On the demand side, after the sharp decline, especially after the earthquake in February 2023, an increasing trend started again in December. This increase became even more evident in January, and the housing demand index increased by 15.3% and reached 107.9.
Developments in the Rental Housing Market
Real rent growth rates have tended to slow down for a long time. However, a stagnation signal has recently been observed in the decrease in the rental housing supply. There has been an increase in the number of rental housing advertisements, especially in Izmir. The demand for rental housing is open to seasonal effects and increases especially between April and September.
Conclusion
The housing market in Turkiye is going through a significant transformation process in terms of both sale and rental housing. Prices generally tend to decline, which offers new opportunities for buyers. However, since there are many factors affecting the market, it is important to follow the developments in the future closely.
Source: Emlakdergisi.net / Prepared by Irem Yildiz