Central Bank of Turkey announces rises in Housing Price Index
According to the data announced by the Central Bank of the Republic of Turkey, the Housing Price Index,(HPI) which is calculated to monitor the price changes adjusted for the quality effect of the houses in Turkey, increased by 2.7% in June 2021 compared to the previous month.
KPI, which increased by 29.2% compared to the same month of the previous year, increased by 9.9% in real terms.
Where was the largest increase?
The biggest increase on an annual basis occurred in Izmir, followed by Istanbul and then Ankara. According to some industry sources, the main reason for the rise in house prices in Izmir can be directly linked to the earthquake as demand for housing was high following this disaster.
Housing loan rumours
It is rumoured that the government may be planning to reintroduce new low-interest rates for housing loans to revive the industry as it did in the early days of the pandemic. This can only be considered good news for construction companies and contractors as it would enable more real estate to be sold. So, now is a good time to buy.