Turkish House Prices Show Strongest Annual Surge Since August
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The Central Bank of the Republic of Türkiye (CBRT) has released its House Price Index (HPI) data for March 2025, revealing a 32.3% annual increase in nominal housing prices—marking the strongest year-on-year growth in seven months. However, in real terms (adjusted for inflation), prices declined by 4.2%, continuing a downward trend in actual purchasing power.
The HPI, which tracks price changes excluding quality differences, rose 2.0% on a monthly basis, reaching a new level of 174.0.
Highest Annual Growth Since August 2024
March 2025 saw the fastest annual nominal increase in house prices since August last year, with the 32.3% rise reflecting a rebound in property values. Nonetheless, real price growth remains in negative territory, suggesting that inflation continues to erode investment returns in the housing market.
Regional Breakdown: Istanbul, Ankara, Izmir
According to CBRT’s data:
| City | Monthly Increase | Annual Increase |
|---|---|---|
| Istanbul | 2.5% | 30.7% |
| Ankara | 1.9% | 38.6% |
| Izmir | 3.8% | 32.5% |
While Izmir saw the highest monthly rise, Ankara topped the chart in terms of yearly growth.
Eastern Türkiye Leads the Price Rally
The highest year-on-year nominal price increases were observed in the following regions:
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+46.7%: Bingöl, Elazığ, Malatya, Tunceli, Van, Bitlis, Hakkari, Muş
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+39.5%: Afyonkarahisar, Kütahya, Manisa, Uşak
Weakest Growth in Southern and Southwestern Cities
Regions with the lowest annual price increases include:
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+19.3%: Antalya, Burdur, Isparta
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+28.3%: Aydın, Denizli, Muğla
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+28.4%: Konya, Karaman
Real Returns Still Under Pressure
Despite robust nominal gains, real returns on housing remain in negative territory, reflecting the broader macroeconomic environment. Analysts advise caution, noting that the inflation-adjusted value of real estate investments is still falling, despite price rises on paper.
