House prices in Turkey decreased by 12% in real terms in November 2024 compared to the same month last year, according to data from the Central Bank dated December 17.
In nominal terms, that is, excluding inflation, the residential real estate price index (RPPI) increased in November by 2.8% month-on-month and by 29.4% year-on-year, the bank said.
According to industry representatives, the construction sector, which has shown a downward trend over the past few years, showed signs of recovery in the 3rd quarter and is expected to start growing again in 2025.
Experts attribute the recovery that began in the 3rd quarter of 2024 to the release of pent-up demand and a change in the preferences of deposit holders.
"People withdrew money from their deposit accounts, expecting that interest rates would decrease, and began to turn to the real estate market," said Sheref Demir, president of the association representing construction companies, adding, however, that this revival "is not enough."
According to Demir, high interest rates and construction costs slow down the growth and development of the industry.
Source: Hurriyet Daily News