As we all know, house prices are going up. Moreover, these increases are at a level that is truly shocking. Let’s take a closer look at the housing price index report published by the Central Bank in August 2021 and see the statistics of the increase in house prices.
With the opening of universities, a great movement started in our country and everyone took their way to another city. Since the number of dormitories to meet the basic accommodation needs of university students is insufficient, students who want to own a house have encountered astonishing numbers. This is not just for students, Anyone looking for a home, trying to provide the basic right to live, shelter valid for.
There are many different reasons for this change in house prices, but this is the subject of a different article. By the Directorate of Surveys and Indices of the Central Bank of the Republic of Turkey, General Directorate of Data Management and Statistics Housing Price Index Report published in August 2021 Let’s take a closer look and see, for some reason, the incredible increase in house prices.
Housing price indices across the country and in our three major cities:
We see in the report prepared on the basis of 2017=100 level that Housing price index in Turkey is 192.6 (33.4%), The price index of new houses is 208.3 (40.2%), the price index of non-new houses is 189.7 (32.0%) and the unit price per square meter is 4851 TL.
Housing price index in Istanbul is 163.5 (30.7%), The price index of new houses is 176.2 (34.7%), the price index of non-new houses is 162.8 (30.1%) and the unit price per square meter is 7265 TL.
Housing price index in Ankara is 180.1 (28.5%), The price index of new houses is 218.4 (40.5%), the price index of non-new houses is 176.0 (27.1%) and the unit price per square meter is 3508 TL.
Housing price index in İzmir is 204.0 (33.6%), The price index of new houses is 218.8 (41.2%), the price index of non-new houses is 202.0 (31.9%) and the unit price per square meter is 5973 TL.
The increase in the housing price index is surprising:
Based on the Housing Price Index Report dated August 2021 at the level of 2017=100 displays the quality-adjusted prices. The data in the report show that the housing price index increased by 3.9 percent compared to the previous month and reached the level of 192.6.
When we analyze the House Price Index Report on an annual basis, the amount of increase we see is compared to the same period of the previous year. It is seen as 33.4 percent. Again, the real increase in the same period is 11.9 percent.
Compared to the previous month, the increase in the housing price index is 4.3 percent in Istanbul, 3.3 percent in Ankara and 3.8 percent in Izmir. one in Istanbul compared to the same period of the previous year The increase in the housing price index is 30.7 percent, 28.5 percent in Ankara and 33.6 percent in Izmir.
The provinces where the housing price index has changed the least and the most:
According to the general result presented by the Housing Price Index Report dated August 2021, the housing price index 3.9 percent compared to last month, It has increased by 33.4 percent and 11.9 percent in real terms compared to the same period of the previous year.
Bingol, Elazig, Malatya, Tunceli 23 percent; Van, Hakkari, Bitlis, Muş 23.7 percent; Zonguldak, Bartın, Karabük with 24.7 percent housing price index shows the least change is at the forefront of our provinces.
Antalya, Burdur, Isparta 41.9 percent; Diyarbakır, Şanlıurfa 44.3 percent; Aydın, Denizli, Muğla with 53.7 percent housing price index shows the most change is at the forefront of our provinces.
Why are houses so expensive?
When we examine the statements made by real estate and economy experts on the subject, Why are houses so expensive? We see the increase in foreign exchange as the first answer to the question. Since the increase in foreign exchange directly affects inflation, house prices increase simultaneously.
There are those who say that the prices of the houses have increased because the quality of the houses have increased, and there are those who claim that the landlords are trying to defraud people in need in some way. However, in general we can say that As the value of our Turkish lira decreases in the international arena, and as inflation on the street rises, so do house prices. Unfortunately, it looks like it will continue to rise.
We reviewed the Housing Price Index Report dated August 2021, We’ve seen price increases And we tried to answer the question why houses are so expensive. You can share your thoughts about house prices in the comments.