House price index up 12 percent

House price index up 12 percent

House price index up 12 percent

The Residential Property Price Index (RPPI) increased monthly by 12.4 percent in May, while it recorded an annual increase of 145.5 percent in nominal terms and 41.1 percent in real terms, according to data released by the Turkish Central Bank yesterday.

The price index for new dwellings exhibited a 151.4 percent increase on an annual basis in the month and the index for existing units rose by nearly 145 percent from a year earlier.

The unit price of a dwelling on averate was 11,944 Turkish Lira/square meters in Türkiye in May.

In Istanbul, the country’s most populous city, house prices increased more than 165 percent from a year earlier, with the price of new dwellings rising nearly 186 percent.

The rise in residential property prices in Ankara was close around 148 percent, while in İzmir, Turkey’s third largest city, prices were up nearly 140 percent year on year.

Home sales increased by 11.7 percent from a year ago to a total of 150,500 units in June, according to the latest data from the Turkish Statistical Institute (TÜİK).

Mortgage-financed sales grew nearly 41 percent year-on-year to 40,610, accounting for 27 percent of all home sales last month, up from the 24 percent share in May.

From January to June, home sales across the country increased by 31.4 percent from 553,000 units in the first half of 2021 to more than 726,000 this year.

Mortgage-financed home sales also registered a 63.5 percent year-on-year rise to over 170,000 units.

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