Turkey’s property price index jumps 96% annually in February

A general view of Galata Tower and the surrounding neighborhood from the Suleymaniye Mosque garden in Istanbul, Turkey, December 6, 2021. REUTERS/Umit Bektas

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ISTANBUL, April 18 (Reuters) – Turkey’s Residential Property Price Index (RPPI) jumped 96.4% in February in nominal terms, central bank data showed on Monday, amid rising of inflation.

In the country’s largest city, Istanbul, home to around a fifth of Turkey’s population of 85 million, the index climbed 106.3% on the year.

The surge follows a fall in the pound at the end of 2021 – a year in which it lost 44% of its value against the dollar – triggering a spiral of inflation linked to imports.

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The annual increase in the IPPR – which measures changes in quality-adjusted house prices – was 77.5% in January and 59.7% in December. Almost a year ago, the index’s annual increase was 32%.

The February RPPI rose 26.9% in real terms over the year and 13.5% from the previous month.

Consumer price inflation in Turkey hit a 20-year high of 61.1% in March, from 54% in February. According to the Statistical Institute of Turkey, average rents – which began to soar across the country in December when the lira hit an all-time high – rose 19.7% year-on-year in March.

However, data from real estate website EmlakJet and competitor Sahibinden analyzed by Bahcesehir University shows that rents nearly doubled during this period.

Evidence on the ground even suggests that’s an underestimate, Reuters reported last week.

Many would-be tenants have given up looking for properties in what some industry experts see as an incipient housing crisis, fueled not only by inflation but also by a struggling lira, boiling property market, population growth local community and a constant influx of immigrants. Read more

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Reporting by Daren Butler; Editing by Jonathan Spicer

Our standards: The Thomson Reuters Trust Principles.

Sharon P. Juarez