Türkiye's housing market recorded its weakest monthly price increase in a year in July, according to data on Monday that signaled a continued slowdown in real terms despite nominal gains.
The Residential Property Price Index (RPPI) rose by 0.9% compared to June, the Central Bank of the Republic of Türkiye (CBRT) said. This marks the lowest monthly increase since July last year.
The index, which measures quality-adjusted price changes of dwellings, recorded an annual increase of 32.8% in nominal terms, yet inflation-adjusted figures revealed a 0.5% decline.
The data marked the 18th consecutive month of decline in prices in real terms.
Türkiye's largest and most populous city, Istanbul, saw a modest monthly increase of 0.6%, while the capital Ankara posted a stronger 1.2% rise. In contrast, the country's third largest city, Izmir, experienced a 1% monthly decline.
Year-over-year, Ankara led the three major cities with a 42.9% nominal increase, followed by Istanbul at 33.5% and Izmir at 31.0%.
The lowest annual increase was observed in Antalya, Burdur and Isparta region with 19.6%.
The data came days after the country's statistical authority said the market recorded its strongest month of the year in July, as demand remains strong despite high borrowing costs.
House sales grew 12.4% year-over-year last month to 142,858 units, marking the second-highest July figure ever.
The figure extended the upward trend that began a year ago and signaled the resilience of the housing market despite tight monetary conditions and inflationary pressures.
Monthly sales had ranged between 107,000 and 130,000 units in the first half of the year. Last month's performance was second only to the pandemic-driven boom in July 2020, when a low-interest loan campaign pushed sales to a record 229,357 units.
The data showed mortgaged sales leaped 60.3% on an annual basis in July and accounted for 14.9% of the total figure. New home sales climbed 7.8% year-over-year, while secondhand sales jumped 14.6%.
Last month, the central bank cut its key policy rate by 300 basis points to 43% as it relaunched an easing cycle that was disrupted by political turmoil earlier this year, as markets calmed and disinflation continued.
The bank had hiked the one-week repo rate to 46% from 42.5% in April and lifted its overnight lending rates to 49 % following market volatility over the arrest in March of Istanbul Mayor Ekrem Imamoğlu.
Imamoğlu was jailed pending trial over graft charges.
Before April, the CBRT had gradually cut its key policy rate from December as inflation eased.
Latest official data showed inflation slowed to 33.5% in July, the lowest rate since November 2021, having peaked at 75% in May last year.
From January through July, overall sales reached 834,751 units, the second-highest seven-month total ever and a 24.2% increase from a year ago.
The peak was recorded in 2020 when 854,126 units were sold in the first seven months.
Mortgaged sales almost doubled during this January-July period, rising 93.2%.
Industry representatives say this year's sales are expected to surpass 1.5 million units, highlighting persistent demand fueled by high rents and the fact that housing price increases currently remain below inflation.
In the whole of 2024, sales grew by 20.6% to about 1.48 million units, returning to levels last seen in 2022.
