📉 Turkey inflation eases to 32.1% as housing costs keep pressure on prices

Turkey’s annual inflation eased to 32.11% in June, down from 32.61% in May, with housing remaining among the main drivers keeping prices elevated. The reading shows inflation is moving lower, yet the cost base for households and landlords is still being shaped by sticky shelter expenses.

AFP reported the June print on IndoPremier, while Knight Frank’s latest Global House Price Index said global house-price growth slowed to 1.4% in Q1 and that Turkey remained among the weakest inflation-adjusted housing markets, with nominal annual growth of 26.2% and real growth of -3.5%. That combination points to a market where nominal price levels can still rise, but inflation-adjusted returns remain compressed.

Why it matters for investors

Housing inflation is particularly important in Turkey because it feeds directly into affordability, rental pressure and consumer demand. For real estate investors, the data suggests that nominal pricing power may persist in selected segments, but real returns are likely to remain under strain unless inflation decelerates more decisively. The reading also reinforces the importance of asset selection, as income stability becomes more valuable than headline appreciation.

➡️ Housing continues to act as an upward pressure point in the inflation basket.

➡️ Turkey remains one of the weakest inflation-adjusted housing markets in Knight Frank’s global comparison.

The latest data leaves Turkey’s residential market with a tighter affordability backdrop and a slower path to real value growth.