Home prices fell 2.3 percent in real terms in May

ANKARA

The Residential Property Price Index (RPPI) recorded an annual increase of 32.3 percent in nominal terms and an annual decrease of 2.3 percent in real terms in May, the Central Bank said on June 20.

The index rose by 3.4 percent compared to April.

In Istanbul, the country’s most populous city, home prices rose 32.6 percent annually and 2.7 percent monthly.

In Ankara, the year-on-year and month-on-month increases were 41.4 percent and 3.8 percent, respectively.

Home prices in İzmir, Türkiye’s third-largest city, were up 3 percent monthly, which brought the annual increase to 31.1 percent.

The RPPI for new dwellings rose by 32.33 percent in May year-on-year, accelerating from 32.28 percent in the previous month.

The annual increase in the RPPI for existing dwellings also quickened from 32.93 percent in April to 32.22 percent last month, according to Central Bank data.

Home sales in Türkiye climbed 17.6 percent on an annual basis in May, the country’s statistical bureau TÜİK reported earlier this week.

A total of 130,025 houses were sold in Türkiye in May, with mortgage-financed sales jumping 95.9 percent on an annual basis to 19,412, accounting for 14.9 percent of all home sales.