House prices in Türkiye rose 1.2% in September from the previous month, according to central bank data published on Friday, but continued to fall in real terms as inflation outpaced gains in the property market.
The Residential Property Price Index compiled by the Central Bank of the Republic of Türkiye (TCMB), which uses 2023 as its base year, reached 239.4 points. Prices were 22.3% higher than a year earlier in nominal terms, equal to a 5.7% decline once consumer inflation is taken into account.
Istanbul leads gains
Among the three largest cities, Istanbul posted the strongest increase, with prices up 2% on the month and 26.8% on the year. Ankara prices rose 0.1% month-on-month and 22% annually, while İzmir saw a 1% monthly rise and a 21% annual increase. The weakest annual growth, 15.3%, was recorded in the Edirne, Kırklareli and Tekirdağ region in Thrace.
For buyers comparing locations, our guide on where to buy property in Turkey looks at six cities in more detail.
Rents rising faster than prices
The central bank’s New Tenant Rent Index, which tracks rents on newly signed contracts, rose 2.1% in September and 26.6% year-on-year, a real fall of 2.4%. Istanbul again stood out, with new-tenant rents up 3.5% on the month and 35.5% on the year. Annual increases were 25.1% in Ankara and 23.7% in İzmir, and the lowest, 18.8%, was again in the Edirne, Kırklareli and Tekirdağ region.
The gap between rent growth and price growth matters for investors because it affects gross rental yields. Rent pressures have also been visible outside the big cities, as in our report on rising rents in quake-hit Hatay.
Context for foreign buyers
Real declines in Turkish house prices mean properties have become cheaper in inflation-adjusted terms, although lira-denominated prices keep rising. For foreigners paying in hard currency, the outcome also depends on the exchange rate. Foreign demand has remained steady, with 1,949 homes sold to foreigners in August, and borrowing conditions are summarised in our explainer on mortgage loan-to-value rules.
Sources
Photo: Alessandro57 / CC BY-SA 4.0, via Wikimedia Commons
