Turkey is one of the three countries where house prices fell the most!

According to the Q1 2024 house price statistics announced by the Bank for International Settlements (BIS) and followed with great interest by the real estate sector, Turkey was one of the three countries where house prices fell the most. According to the reports of the Switzerland-based BIS, real house prices worldwide in the first quarter of 2024 decreased by 1% compared to the same period last year. Turkey, on the other hand, experienced an 8.9% decline in house prices in this period, ranking as the third country with the largest decline.

Price Declines in Turkey and Worldwide

Since Q3 2022, the global house price decline reached 3.1% in Q1 2023. This decline continued in the first quarter of 2024, but at a slower pace. In Turkey, house prices fell by 8.9% in real terms in Q1 2024, with Luxembourg ranking first with a decline of 13.7% and Hong Kong second with a decline of 13.2%.

There was a significant increase in global house prices during the pandemic period, and Turkey became the country with the highest increase in house prices worldwide in Q3 2022. At that time, the annual real house price increase in Turkey was recorded as 59.6%. However, by 2024, this increase slowed down and as of Q1, Turkey experienced a decline in prices. Nevertheless, Turkey has maintained its position as the country with the highest increase in house prices since the last quarter of 2019. According to BIS data, house prices in Turkey rose by 119.4% in real terms during this period.

Divergence between Global and Emerging Markets

While the decline in real house prices almost came to a halt in advanced economies, it was more pronounced in emerging economies. In the first quarter of 2024, emerging economies recorded an annualized decline of 1.6%. Most of this decline stemmed from the fall in house prices in Asian countries.

Countries with Increasing House Prices

In contrast, the United Arab Emirates (UAE) topped the list of countries where house prices rose the most, with an increase of 15.6%, Poland came second with 14.6% and Bulgaria third with 12.2%.