Real decline in housing prices continues

The Residential Property Price Index (RPPI) (2023=100), calculated to monitor price changes in residences in Turkey adjusted for quality effects, increased by 0.9 percent in July compared to the previous month, reaching 141.3.

While the Construction Cost Index (KFE) increased by 38.7 percent annually in July, the real decrease during this period was 14.3 percent.

When looking at the change in the House Price Index (HPI) for the three major provinces, a decrease of 0.2 percent was observed in July compared to the previous month for Istanbul and Izmir, while an increase of 0.6 percent was seen for Ankara.

Compared to the same month of the previous year, index values rose by 26.8 percent in Istanbul, 39.4 percent in Ankara, and 37 percent in Izmir.

The CBRT had revised the calculation method for the Residential Property Price Index to improve timeliness.

The new series have begun to be calculated using a monthly dataset instead of a 3-month dataset to increase timeliness, and the publication period has been updated from t+45 to t+15.