The changes in the rental and sale housing market were examined in the “sahibindex Rental and Sale Housing Market Outlook” report prepared by sahibinden.com in cooperation with Bahçeşehir University Economic and Social Research Center (BETAM).
According to the report, since the current housing price increase rates nationwide and in three metropolitan cities from July to August were lower than the inflation rate, real sales prices nationwide and in three metropolitan cities remained low. The annual rate of change in real prices was -18.3 percent nationwide, -19 percent in Istanbul, -17.4 percent in Ankara, and -15.4 percent in Izmir in August. The annual rate of increase in current prices decreased by an average of 3.5 points nationwide compared to July, falling to 24.1 percent. The annual rate of increase in current prices per m2 of housing for sale decreased in all three metropolitan cities, becoming 23 percent in Istanbul, 25.5 percent in Ankara, and 28.6 percent in Izmir. The annual rate of increase in the average rental housing price per m2 across Turkey rose to 47.1 percent in August. The annual rental increase rate was announced as 46.7 percent in Istanbul, 56 percent in Ankara, and 62.5 percent in Izmir.
Real housing prices continue to decline
The real housing price index across the country, which has been increasing continuously since May 2020, has continued to decline since July 2023 in August 2024. The real housing price index decreased by 0.9 points in August compared to July, reaching 161. The inflation rate from July to August was higher than the current housing price increase rate. Since current housing prices have systematically remained below inflation for the past year, real prices have decreased.
Real sales price index declines in three major cities
The real housing sales price index, which has been decreasing for the last year, continued to decrease in August after the stagnation in June. From July to August, the real housing price index decreased by 0.7 points in Istanbul, 0.2 points in Ankara and 1.2 points in Izmir. In August, the real housing price index (September 2017=100) was 156.6 in Istanbul, 181.7 in Ankara and 170.6 in Izmir.
Annual change in real prices remains negative
The annual real price increase, which reached 65.8 percent in August 2022, began to decline rapidly as of September 2022. The annual real price increase, which temporarily increased in April 2023 due to the impact of the major earthquake, began to decline again as of May. The decrease in real prices began to slow down in July 2024. Although the annual price change rate increased by 2.8 points compared to July 2024 in August 2024, it continued to be negative at -18.3 percent.
Increase in housing demand
The demand index, which made an exceptional jump in January 2023 and rose to 235, followed a downward trend following the February 2023 earthquake and fell to 88.7 in November 2023. The index, which turned upwards as of December 2023, reached 155.9 with an increase of 9.5 percent from July to August.
Annual change in real rent is in the negative area
The annual change rates in inflation-adjusted real rents across Turkey have been decreasing for a long time. Excluding the exceptional increase from May to June of last year, the annual change rate in average real rents peaked at 86.6 percent in February 2023 and then began to decline. The annual real rental price change, which gave way to negative increases as of February 2024, was approximately 15 percent in May. The decline in real rents lost momentum after May. The loss of momentum became more pronounced in August. According to August data, the annual change in real rental prices decreased to -3.2 percent. Accordingly, real rents decreased by 3.2 percent on average compared to the same month of the previous year.
Source: www.dunya.com
