Turkish house prices lag inflation by 10 percentage points
Increases in new home prices in Turkey are lagging consumer price inflation by more than 10 percentage points.
Prices rose an annual 3.6 percent in June after a 3.55 percent increase in May, according to the REIDIN-GYODER new home price index. The price of new homes climbed 0.33 percent in June compared with May.
Properties in branded projects on the Asian side of Istanbul saw prices increase 0.05 percent in June compared with May. They rose by 0.56 percent monthly on the European side of the city.
New housing stock rose 7.5 percent compared with 4.5 percent in May and 3.6 percent in April. The six-month average was 4.6 percent.
The government sought to stimulate Turkey’s stuttering housing market prior to presidential and parliamentary elections on June 24, lowering taxes, ordering real estate agents to reduce commissions and state-run banks to lower mortgage rates. Inflation in Turkey surged to 15.4 percent in June from 12.2 percent in May, spurred by government incentives for the economy and a slump in the lira’s value against the dollar.
The REIDIN-GYODER index is based on 70 housing projects with a monthly average number of properties totalling 22.500 built by 34 major developers.