Real estate prices rise 133 percent in March - Latest News

Real estate prices rose 133 percent in March ANKARA. Data from the Central Bank showed that the residential real estate price index rose 132.8 percent in March compared to the same month last year. In real terms, the index rose 55.4 percent, with a monthly increase of 5.4 percent. Thus, the price per square meter was 21,800 Turkish liras ($1,100).

In Istanbul, real estate prices increased by 127 percent compared to March 2021. In the capital Ankara, the annual increase was more than 135 percent. In Izmir, the country's third largest city, real estate prices rose 133.4 percent year-on-year.

Residential real estate sales continued to decline in April. A total of 85,652 homes were sold in Turkey last month, marking a 35.6 percent decline compared to the same month last year.

Problems with access to credit are still ongoing, real estate expert Mustafa Hakan Ozelmacıklı said. After the government announced the extension of the 25 percent cap on rent increases, people are turning away from buying houses as an investment, he added. Sales of properties with mortgages fell 32 percent in April from a year ago to account for 25 percent of all sales. "Many people prefer to place their money in currency-fixed accounts instead of buying a house," Ozelmacıklı said, adding that real estate prices are expected to fall in real values due to the decreased demand for houses.

However, he predicted that rental prices will remain high and even continue to rise. "The month of May is the start of the wedding season, which means an increase in demand for residential rentals. In addition, owners will demand higher prices when renting out their properties to new tenants because of the 25 percent cap on rent increases."