Residential property prices in Türkiye continued to rise in nominal terms in August 2026, but the increase again fell short of consumer inflation, according to data published by the Central Bank of the Republic of Türkiye (CBRT) on Sept. 16.
The bank's House Price Index (KFE), which tracks quality-adjusted price changes, rose 0.9% from July to reach 236.8 points. Compared with August 2025, prices were up 23% in lira terms. Once adjusted for inflation, however, they were down 6.5% year-on-year. Annual consumer inflation stood at 31.51% in August, and Turkish media described the month as the ninth consecutive month of real-terms decline for home prices.
Istanbul, Ankara and Izmir
Among the three largest cities, Izmir recorded the strongest monthly increase at 2.7%, followed by Istanbul at 1.9% and Ankara at 1.5%. On an annual basis, Istanbul led with a nominal rise of 26.3%, while Ankara posted 24.8% and Izmir 23.3%.
Regional differences remained wide. The fastest annual growth, 27%, was recorded in an eastern region grouping Bingöl, Elazığ, Malatya, Tunceli, Van, Bitlis, Hakkari and Muş, several of which were affected by the February 2023 earthquakes. The slowest, 13%, was in the northwestern Thrace region of Edirne, Kırklareli and Tekirdağ.
For comparison, the July index had shown a monthly increase of 1.5% and an annual gain of 25%, meaning the pace of nominal price growth slowed in August.
Rents outpace prices
The CBRT's New Tenant Rent Index, which measures rents agreed on new tenancy contracts, rose 2.3% month-on-month in August. Annual growth was 26.4% in nominal terms, equivalent to a real decline of 3.9%.
Monthly rent increases were notably sharper in the big cities. New-tenant rents climbed 5.4% in Izmir and 4.9% in Istanbul during the month, compared with 2.6% in Ankara. Over 12 months, Istanbul rents were up 34.5%, the highest rate of any region, while Ankara recorded 28.3% and Izmir 25.5%. The lowest annual rent growth, 17.3%, was again seen in the Edirne, Kırklareli and Tekirdağ region.
The figures suggest that while home prices are losing ground against inflation, rents for newly signed contracts in Istanbul are still rising faster than prices, a pattern that has persisted for much of the year.
Sources
- Konut Fiyat Endeksi Ağustos ayında aylık yüzde 0,9, yıllık yüzde 23 arttı
- Konutta reel kayıp serisi dokuzuncu ayında
- Konut fiyatlarında reel kayıp sürüyor (July data)
Photo: Sakhalinio / CC BY-SA 3.0, via Wikimedia Commons
