Turkey is one of the three countries with the largest decline in housing prices

According to first-quarter housing price statistics released by the Bank for International Settlements (BIS), which is considered the umbrella organization for central banks worldwide, Turkey was one of the three countries where housing prices fell the most.

Data from the Switzerland-based BIS, of which the Central Bank of the Republic of Turkey (TCMB) is also a member, showed that global housing prices fell by 1 percent in real terms in the first quarter of 2024 compared to the same period last year. Global housing prices, which had surged during the pandemic, have been falling since the third quarter of 2022. This decline had reached 3.1 percent in the first quarter of 2023. Since then, although the decline has continued, it has been gradually slowing down.

'TURKEY IS ONE OF THE THREE COUNTRIES WHERE HOUSING PRICES FELL THE MOST'

BIS data shows that Turkey was one of the three countries where housing prices fell the most in the first quarter of 2024. In Turkey, housing prices fell by 8.9 percent in real terms in the first quarter compared to the same period last year. The country where housing prices fell the most in the first quarter was Luxembourg, with 13.7 percent. Hong Kong took second place with a 13.2 percent decline.

On the other hand, the country where housing prices increased the most in the first quarter was the UAE, with 15.6 percent. Poland ranked second with a 14.6 percent increase, and Bulgaria ranked third with a 12.2 percent increase.

'TURKEY HAD BEEN THE COUNTRY WHERE PRICES INCREASED THE MOST DURING THE PANDEMIC'

Turkey had been the country in the world where housing prices increased the most in real terms during the pandemic. According to BIS data, the annual real increase in housing prices in Turkey reached 59.6 percent in the third quarter of 2022. This rate of increase gradually slowed, and in the first quarter of 2024, a decline was observed for the first time since the last quarter of 2019.

However, despite this decline, Turkey remains the country in the world where housing prices have risen the most since the last quarter of 2019. According to BIS data, housing prices in Turkey have increased by 119.4 percent in real terms since the last quarter of 2019.  

DECLINE IN HOUSING PRICES ACCELERATED

According to BIS data, the decline in real housing prices in advanced economies has almost come to a standstill. Housing prices in advanced economies, which fell by 0.9% on an annual basis in the previous quarter, declined by 0.3% on an annual basis in the first quarter of 2024.

In contrast, the decline in housing prices in emerging economies accelerated slightly. Following a 1.4% decline in the fourth quarter of 2023, a 1.6% decline occurred on an annual basis in the first quarter of 2024 in emerging economies. This decline was largely driven by Asian countries.

News Source: 12punto