Turkey tops global ranking of housing price inflation in Q1 2023

Photo: AA/File

Click to read the article in Turkish

Turkey was the country with the most significant surge in housing prices in the first quarter of the year, according to a global house price index.

The index released by the international real estate consultancy firm Knight Frank encompasses 56 countries and regions.

During the first quarter of 2023, housing prices in Turkey demonstrated an increase of 132.8% compared to the same period in 2022.

Following Turkey, North Macedonia (18.8%), Croatia (17.3%), Hungary (16.6%), and Lithuania (15.3%) secure the second, third, fourth, and fifth spots, respectively.

However, certain regions, primarily across European countries, have experienced a decline in housing prices. While Germany witnessed a 1% decrease, the figures were more pronounced in the United Kingdom (3.1%) and Sweden (8.8%).

Cities with the highest increase

Among the 150 cities featured in the index, İstanbul (127.3%), Ankara (135.3%) and İzmir (133%), the three largest cities of the country, stand out as the cities with the most significant spikes in housing prices in Turkey.

Furthermore, based on the housing price index released by the Central Bank of the Republic of Turkey (CBRT), housing prices surged by 189% in September 2022 compared to the same month the previous year.

This figure represents the highest rate of increase in the past decade. In September 2011, annual housing price growth was at 36%.

As inflation began to taper, the annual increase in June 2023 stood at 96%. Concurrently, housing prices increased by 38% in real terms during the same period. This dynamic reveals the intricate interplay between economic trends and housing market dynamics within Turkey. (AS/VK)