Increase in home prices further slows

ANKARA

The slowdown in the year-on-year increase in the residential property price index (RPPI) continued in October, the latest numbers from the Central Bank showed.

Home prices rose by 86.5 percent across Türkiye, easing from September’s 89.2 percent increase.

The RPPI increased monthly by 3.8 percent, while the year-on-year increase in real terms was 15.4 percent.

The unit price was 30,036 Turkish Liras per square meter in October, the bank said on Dec. 18.

The residential property price index for new dwellings was up 91.1 percent from a year ago, after recording a 94.4 percent year-on-year increase.

“Our regulations on short-term rentals increased the housing supply, and rents began to decline, especially in metropolitan cities, Finance Minister Mehmet Şimşek wrote on Dec. 12 on X, formerly Twitter.

“Housing supply will increase further in 2024 with the completion of housing for earthquake victims and as our efforts accelerate for urban transformation,” he added.

The easing of rigidity in rental prices supports efforts to reduce inflation, Şimşek said.