Among 56 countries in the world, Turkey was the country where housing prices increased the most. In the first quarter of 2023, house prices in Turkey rose 133 percent compared to the same period in 2022. In some countries, including Germany and the UK, house prices fell.
As the crisis in Turkey's housing and rental market deepens, the government is trying to alleviate the problem with new measures.
At a time when official inflation exceeded 70 percent, the government imposed a 25 percent limit on rent increases, pitting landlords and tenants against each other.
Finally, the Banking Regulation and Supervision Agency (BRSA) decided to reduce the housing loan value rate by 75 percent if the spouse or children under the age of 18 own at least one house. For example, those who will buy a house worth 5 million TL as their second deeded house will be able to borrow 22.5 percent of the value of the house.
According to the Global House Price Index of Knight Frank, an international real estate consultancy firm that examines 56 countries and regions, house prices in Turkey increased by 132.8 percent in the first quarter of 2023 compared to the same period in 2022.
North Macedonia ranked second (18.8 percent), followed by Croatia (17.3 percent), Hungary (16.6 percent) and Lithuania (15.3 percent).
The rate of increase in some other countries is as follows: Greece 14.5 percent; Bulgaria 9.5 percent; Japan 6.8 percent; France 2.7 percent and the USA 0.7 percent.
House prices fell in some regions, especially in European countries. House prices fell by 1 percent in Germany, 3.1 percent in the UK and 8.8 percent in Sweden.
The index also examines price changes in 150 cities. Turkey's three largest cities are on the list. Ankara (135.3 percent), Izmir (133 percent) and Istanbul (127.3 percent) were the cities where housing prices increased the most among the 150 cities on the list.
The increase in Zagreb, in fourth place, was 22.5 percent. Tokyo saw house prices rise by 7.5 percent, compared to 3.4 percent in New York, 1.4 percent in Barcelona and London, and 0.6 percent in Rome.
In a small number of cities, prices fell. The decline was 0.2 percent in Washington and 0.3 percent in Rotterdam.
These increases by country and city are nominal. In other words, inflation is not taken into account. The real change, which takes inflation into account, is also quite high in Turkey. Between the last quarters of 2021-2022, real house prices in Turkey increased by 51 percent.
According to the CBRT's house price index, house prices rose 189 percent in September 2022 compared to the same month of the previous year.
This rate was the highest in the last 10 years. House prices suddenly started to climb in September 2021 with the transition to the new economic model. In September 2011, the annual house price increase was 36 percent.
As inflation started to fall, the annual increase was 96 percent in June 2023. In the same period, house prices rose by 38 percent in real terms.