Turkey's Housing Price Index Rises 1.5% in July

The Central Bank of the Republic of Turkey released July data for the Housing Price Index (KFE) and the New Tenant Rent Index (YKKE); the KFE rose 1.5% month‑over‑month to 234.8.

July Momentum of the KFE

■Monthly gain: 1.5% (vs. previous month)

■Year‑over‑year gain: 25% (same month last year)

■Real decline: 5.1% after inflation adjustment

■City‑level moves: Istanbul +2.7%, Ankara +2.2%, İzmir -0.5%

Regional Hotspots and the Highest Gains

■The strongest annual increase, 35.5%, was recorded in the Bingöl, Elazığ, Malatya, Tunceli, Van, Bitlis, Hakkari, Muş regions.

■The weakest annual rise, 16.4%, occurred in Balıkesir and Çanakkale.

■Annual KFE growth for Istanbul, Ankara and İzmir stood at 27.7%, 26.6%, and 23.1% respectively.

New Tenant Rent Index (YKKE) Trends

■Monthly gain: 1.9% (July)

■Nominal annual gain: 28.4%

■Real decline: 2.6% after inflation adjustment

■City‑level moves: Istanbul +1.7%, Ankara +2.2%, İzmir -1.8%

Real vs. Nominal Shifts: What the Numbers Reveal

■While nominal figures show robust growth, the 5.1% and 2.6% real drops indicate price increases are not fully keeping pace with inflation.

■Regional disparities, especially the sharp rise in Eastern Anatolia, point to a shifting geographic demand pattern.

Fatih Kılıç – The real‑term pull‑back in both KFE and YKKE suggests that tighter monetary policy has yet to fully translate into lower housing price pressures, but localized speculation continues to lift prices. Going forward, TL interest rates and inflation dynamics will be the decisive levers steering the KFE trajectory.