Türkiye's home prices continued to rise in nominal terms in July but fell further behind inflation, marking an eighth consecutive month of declines in real terms, official data showed Tuesday.

The residential property price index rose 1.5% month-over-month in July and increased 25% from a year earlier in nominal terms, the Central Bank of the Republic of Türkiye (CBRT) said.

Adjusted for inflation, however, home prices fell 5.1% year-over-year. Annual consumer price index (CPI) stood at 31.75% in July.

Among Türkiye's top three cities, price growth accelerated more strongly in Istanbul than in capital Ankara and western Izmir during the month.

Home prices rose 2.7% month-over-month in Istanbul, compared with 2.2% in Ankara and 0.5% in Izmir.

On a regional basis, the largest annual increase in the residential property price index was recorded in the Bingöl, Elazığ, Malatya, Tunceli, Van, Bitlis, Hakkari and Muş region, at 35.5%.

The smallest annual increase was seen in Balıkesir and Çanakkale, at 16.4%.

Rents also drop in real terms

The CBRT's new tenant rent index, which tracks newly signed lease contracts, also showed a decline in real terms.

The index rose 1.9% month-over-month in July and 28.4% year-over-year in nominal terms, but declined 2.6% in real terms.

Regional rental trends diverged from the housing market. The Eastern Black Sea region recorded the strongest annual increase, with rents rising 35%, ahead of Istanbul, Ankara and Izmir.

In Istanbul, annual rent growth reached 32.4%, exceeding July's 31.75% inflation rate and resulting in a real increase.

Annual rent increases were 28.6% in Ankara and 26.3% in Izmir.

The strongest regional increase was recorded in Artvin, Giresun, Gümüşhane, Ordu, Rize and Trabzon, where the new tenant rent index rose 35% year-over-year.

The lowest increase was again recorded in Balıkesir and Çanakkale, at 18.8%.