📉 Türkiye home prices keep falling in real terms

Türkiye’s residential property price index rose in nominal terms in May, but home values continued to fall after inflation adjustment as high borrowing costs weighed on the market. Sales volumes remained active, showing that transaction activity has not stalled even as affordability stays stretched.

The latest reading underscores a split between nominal and real performance in the housing market, according to Daily Sabah. With inflation still eroding purchasing power and mortgage rates remaining elevated, the data suggests that nominal price gains are not translating into real capital appreciation for homeowners or investors.

Why it matters for investors

The market remains active, but the combination of high rates and inflation-adjusted price declines points to a buyer-dominant environment in which cash buyers hold more leverage. For investors tracking Turkish residential assets, the key issue is not just headline price growth but whether rental income and financing costs can offset the real decline in values.

➡️ Real house prices in Türkiye are still under pressure despite nominal increases.

➡️ Sales volumes holding up indicate liquidity remains in the market even as affordability weakens.

The data signals that Turkish housing is likely to stay sensitive to monetary policy, with real returns constrained until borrowing costs ease.