Turkey doubled Europe in housing price increase: 60 percent annual increase
The increase in housing and rent prices in Turkey cannot be prevented. Social media posts that the landlords want to rent out the existing tenants and re-lease them at a higher price draw attention. Turkey is the country with the highest increase in housing prices in Europe. In the last quarter of 2021, the annual increase in Turkey was 60% compared to the same period of 2020, while the European Union (EU) average remained at 10%. As for rent, Turkey is the second country in Europe with the highest increase. EU Statistics Office (Eurostat) has announced housing and rental price data for the 4th quarter of 2021. Eurostat gets this data from the national statistics offices of the countries. Turkish Statistical Institute (TUIK) shares data on Turkey. The data reflect the annual change from the last quarter of 2020 to 2021. Accordingly, in a year covering the 4th quarter of 2020 and the 4th quarter of 2021, housing prices in Turkey increased by 60 percent. The increase in Czechia, which ranks second after Turkey, remained at 26 percent. Housing prices in the EU increased by an average of 10 percent.
Cyprus is in the last place in housing price increase. Housing prices in this country fell by 5 percent. In this period, the increase rates in some other countries are as follows: The Netherlands 19 percent, Germany 12 percent, Bulgaria 9 percent, France 7 percent and Italy 4. The price change is calculated over the housing price index.
How much have rents increased?
According to Eurostat’s Harmonized Index of Consumer Prices (HICP), rents rose by the most in Slovenia in the 4th quarter of 2020-2021, by 15%. Turkey ranks second with 12%. The EU average is only 1.3 percent. Austria is in last place. Rents in this country decreased by 1.7 percent in the 1 year covering this period.
In some countries,
rents are 12 percent in Estonia, 3 percent in Romania, 2 percent in Bulgaria, 1.3 percent in Germany; Netherlands and France 0.8 percent and Greece 0.3 percent.
While Eurostat data shows house prices quarterly, it is possible to see rent monthly. In the last 1 year, covering the 2021-2022 February period, rents increased by 18.2 percent at the most in Slovenia. While Turkey ranks second with 15.5 percent, the EU average was 1.4 percent.
As of February, the housing price increase in Turkey in the last 1 year is 96 percent.
Eurostat data does not show monthly housing price increases, but the Central Bank of the Republic of Turkey announces monthly data. According to Central Bank data, housing prices in Turkey have increased by 96.4 percent in the last year, covering the period between February 2021 and February 2022.
Housing prices exploded after the currency crisis
It is noteworthy that the housing prices in Turkey have increased rapidly in the last 4-5 months. Looking at the annual increase between January 2011 and February 2021, it is seen that it was around 10-15 percent until the last period. In January 2011, the annual rate of increase was only 6.4 percent. In fact, this rate dropped to 1.5 percent in May 2019. In May 2020, the annual increase in the last 10 years exceeded 20 percent for the first time.
The annual increase rate, which was between 25-30 percent after this date, exceeded the 40 percent band for the first time in October 2021. Annual increase from 51 percent in November 2021 saw 60 percent in December 2021, 78 percent in January 2022 and finally 96 percent in February 2022.
It is noteworthy that housing prices started to increase rapidly after the October-November 2021 period, when the depreciation of TL against foreign currency accelerated.