Housing prices in Türkiye extended their decline in real terms in May, despite continued growth in sales volumes, as elevated borrowing costs weigh on the property market.
Data from the Central Bank of the Republic of Türkiye (CBRT) showed on Tuesday that the Residential Property Price Index (RPPI) rose 1.7% month-over-month in May and was up 24.5% from a year earlier in nominal terms. The annual nominal increase was the weakest since May 2020.
Adjusted for inflation, however, house prices fell 6.1% year-over-year, marking the 27th monthly real decline in the past 28 months.
Inflation in Türkiye edged up to 32.6% in May from 32.4% in April.
Analysts said the divergence between stronger sales volumes and weaker real prices reflected a market driven more by deferred demand than fresh speculative interest.
