The decline in housing sales prices in Turkiye continued for the 8th month. Prices across the country fell by 12.1% in February compared to last year and by 14.6% in Istanbul. While the negative trend in rent increases continued, the demand for rental housing remained flat in February.
It was reported that the decline in real housing sales prices has continued for 8 months. Prices across the country fell by 12.1% compared to last year and by 14.6% in Istanbul. When the rate of increase in current house prices is examined, it decreased by 8.8 points across the country compared to January, falling to 46.9%.
The February results of the “sahibindex Rental and Sale Housing Market Outlook” research, prepared in cooperation with Bahcesehir University Economic and Social Research Center (BETAM) and sahibinden.com, have been announced.
The decline in the real house price index across the country, which has been increasing continuously since May 2020, since July 2023, continued in February 2024. The real house price index was 173.5 in February, with a decrease of 4.2 points compared to January. While the inflation rate from January to February was approximately 4.5%, the current house price increase across Turkiye remained at 2.1% in the same period. Real prices have been decreasing as current house prices have systematically remained below inflation in recent months.
THE DECLINE IN HOUSING PRICES CONTINUES
As in the previous 7 months, the real sales price of housing decreased in three metropolitan cities in February. From January to February, real house prices decreased by 4 points in Istanbul, 3.2 points in Ankara and 4 points in Izmir. In February, the real housing price index was 170.3 in Istanbul, 195.7 in Ankara and 177.6 in Izmir.
The annual real price increase, which reached 65.8% in August 2022, started to decline rapidly as of September 2022. The annual real price, which rose temporarily in February 2023 due to the impact of the earthquake, started to decrease again as of March, and in February 2024, the annual price change rate decreased by 6.5 points compared to January 2024, continuing its course at negative values at -12.1%.
The number of advertisements increased from January to February across the country and in three metropolitan cities. Compared to last month, the supply of housing for sale increased by 3.2% across the country, 3.6% in Ankara and 4.4% in Izmir. The increase in Istanbul is lower than other metropolitan cities, with 1.8 percentage points.
REAL RENTAL INCREASE WAS NEGATIVE
Annual increases in inflation-adjusted real rent across Turkiye have been decreasing for a long time. Excluding the exceptional increase from May to June, the annual increase in average real rent peaked at 86.6% in February 2023 and then started to decline, decreasing by 4 points from December to January to 9.5%. In February, it was observed that the average real rent decreased by 1.1%. With this decrease, the average real rent in February 2024 fell below the February 2023 level.
While the rental housing demand indicator decreased between August and November, it increased slightly in December and January. In February, demand remained flat. The rental housing demand index increased by 0.1% from January to February. On an annual basis, there is a 25% decrease in the demand for rental housing.
Source: NTV / Prepared by Irem Yildiz