Turkey’s Housing Price Index Rises 3.4% in May, But Real Prices Decline Year-on-Year

Turkey’s Housing Price Index (HPI) rose by 3.4% in May 2025 compared to the previous month, according to data released by the Central Bank of the Republic of Türkiye (CBRT). However, despite the nominal increase, real housing prices showed a year-on-year decline when adjusted for inflation.

“The HPI, which measures price movements of residential properties across Türkiye after adjusting for quality, increased to 182.4 points in May,” the CBRT reported.

Year-on-year, the index rose 32.3% in nominal terms, but when adjusted for inflation, it fell by 2.3%, indicating that rising home prices have not kept pace with the broader cost of living.

City Highlights: Ankara Leads in Price Growth

Among Türkiye’s three major cities:

• Ankara recorded the highest monthly increase at 3.8%

• Followed by İzmir at 3.0%

• And Istanbul at 2.7%

Compared to May 2024:

• Ankara’s housing prices jumped 41.4%

• Istanbul rose by 32.6%

• İzmir saw a 31.1% increase

Despite these significant gains, the real value of homes — once inflation is considered — continues to lose ground, especially for prospective homeowners facing high mortgage rates and tight credit conditions.