TUIK Releases Turkish Real Estate Market Statistics for July 2024

House prices in Turkey increased by 38.7% in nominal terms (in local currency) in July 2024 compared to July 2023. However, when adjusted for inflation, a key factor in the country's current economic landscape, they fell by 14.3%, the Central Bank of the Republic of Turkey (CBRT) reported.

House sales rebounded in July to their highest level this year, despite higher mortgage rates and high prices that have plagued the industry. Notably, transactions with foreigners fell significantly in 2024.

In economic terms, nominal price increases reflect the situation without adjusting for inflation. In contrast, prices in real terms provide a clearer picture of whether the value of an asset is actually increasing in terms of purchasing power. In Turkey's case, while nominal house prices have risen sharply, the value of properties has actually fallen in real terms.

Istanbul, Turkey’s largest city and a key driver of the property market, saw the smallest nominal gain among the major regions, with prices up 26.8% year-on-year.

Turkey is struggling with persistently high inflation, the impact of which is exacerbated by disruptions in global supply chains and fluctuations in energy prices.

Since the second half of last year, the authorities have taken aggressive measures to curb inflation – the Central Bank began raising the base interest rate from June 2023, bringing it to the current 50%. Last month, inflation fell to 61.8% year-on-year, according to official data.