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The rising trend of rents continues in Istanbul, housing sales prices increased

Annual rent increase rate increased by 8.4 percentage points in Istanbul, 1.8 percentage points in Ankara and 6.8 percentage points in Izmir compared to the previous month.

According to the ‘Sahibindex Housing Market Outlook’ report, the annual rent increase rate increased by 8.4 percentage points in Istanbul, 1.8 percentage points in Ankara and 6.8 percentage points in Izmir, compared to the previous month. The annual rate of increase in the advertisement price, which was 37.9% in July, became 38.9% in August. With the statement made by sahibinden.com, the ninth “Sahibindex Housing Market Outlook” report has been published.

The report, prepared by the Bahcesehir University Center for Economic and Social Research (BETAM), based on the advertisement data of sahibinden.com, revealed that there has been a significant increase in rental prices in Istanbul. In addition, value increases were observed in summer residences.

While it was observed that the continued increase in demand for summer houses increased the values of the houses, the report included the comments of BETAM experts on the statistical data obtained by analyzing the data pool in the real estate category of sahibinden.com.

According to the report, it was observed that the annual rate of increase in the annual current price (advertisement price) in August increased again after the loss of tempo last month.

The annual rate of increase in the advertisement price, which was 37.9% in July, became 38.9% in August. Thus, the average square meter price of housing for sale in Turkey, which was ₺3 thousand 155 in the same period of last year, reached ₺4 thousand 382 in August.

The provinces with the highest and lowest annual sale price changes in August are as follows:

ProvincesAugust 2020 m2 PriceAugust 2021 m2 PricePrice Change for Sale (%)
Turkey Average3.1554.38238.9
Aydin3.4075.75068.7
Mugla6.45510.35760.5
Sanliurfa1.6292.50053.5
Balikesir3.0904.61149.2
Mersin2.1723.19247.0
Malatya1.9312.52530.8
Manisa2.4813.23330.3
Kayseri1.9442.51629.4
Van2.0312.60028.0
Kocaeli2.4493.12527.6

Strong increase in housing demand in Istanbul

It was observed that both the number of advertisements for sale (supply of houses for sale) and the number of houses sold (demand for houses for sale) increased compared to the previous month in three big cities.

Although the housing supply in these provinces increased at about the same rate, the increase in the demand for housing in Istanbul was more pronounced than in other provinces.

The number of ads for sale increased by 3.8% in Istanbul, 3.8% in Ankara, and 3.5% in Izmir.

On the other hand, the number of houses sold increased by 28.9% (from 10 thousand to 13 thousand) in Istanbul and 22.6% in Ankara (from 3 thousand 678 to 4 thousand 509), 23.1% in Izmir (from 2 thousand 617 to 3 in 223) compared to the previous month.

Luxury residences reached the highest value after September 2017, compensating for real depreciation

Luxury house prices continued to increase the pace of increase in August, and continued to widen the gap with the CPI.

When the price developments are analyzed, there was an increase of 3.8% in luxury housing announcement prices and 1.1% in CPI compared to the previous month.

With these data, inflation-adjusted luxury housing prices broke a new record, reaching the highest value since September 2017 and increased by 13.4%.

Looking at the current price developments compared to the same month of the previous year, it was seen that the rate of increase in luxury housing prices slowed down somewhat, while the rate of increase in the price of cheap houses increased slightly.

The annual rate of increase in current sales prices in August was 49.1% in luxury residences and 29.7% in cheap residences. Thus, while the average current price of square meters for sale was ₺13 thousand 491 in luxury residences, it was ₺2 thousand 306 in cheap residences.

Prices increased in districts dominated by summer residences, prices in Datca increased 2.5 times the average of Turkey

Prices increased in districts where summer residences are dominant, and prices in Datca increased 2.5 times the average of Turkey. The lowest annual price increase rate in these districts was 63.1% (Izmir, Dikili) and the highest was 105.2% (Mugla, Datca).

The price increase in Datca was 2.5 times the average of Turkey. The increase in Dikili was more than 1.5 times the average of Turkey.

While 20 of these 26 districts are the districts with a very high density of summer residences, the 6 districts outside this group are Samsun 19 Mayis, Diyarbakir Sur, Gaziantep Oguzeli, Sile and Kadikoy of Istanbul and Bayindir district of Izmir, respectively.

Rental increase continues in Istanbul

The annual rate of increase in the rental price per square meter in August increased in all three major cities.

Compared to the previous month, the annual rent increase rate increased by 8.4 percentage points in Istanbul, 1.8 percentage points in Ankara and 6.8 percentage points in İzmir.

The annual rent increase rate reached 50.7% in Istanbul, 31.8% in Ankara and 30.9% in Izmir.

Thus, the average rental square meter prices, which were ₺21.1 in Istanbul, ₺11.7 in Ankara and ₺16.7 in Izmir in August 2020, increased to ₺31.8 and ₺15.4, ₺21.8 in these provinces, respectively.

When the monthly changes in the ratio of the number of rented residences to the total number of rental advertisements are analyzed, it is seen that the number of rental advertisements increased slightly, while the number of rented residences increased significantly.

Compared to the previous month, the number of rental advertisements (rental housing supply) increased by 0.6% (from 194 thousand to 195 thousand), and the number of rented houses (rental housing demand) increased by 24.7% (from 43 thousand to 54 thousand).

When these indicators are compared, it is seen that the increase in the vitality index is mainly due to the increase in rental housing demand.

Source: AA / Translated by Irem Yildiz

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