House prices in Turkey increased by 1.32 percent on average in March. The first three months of the year increased by 3.44 percent and the last one year increase was 12.67 percent. The rise in housing prices has slowed down, inflation has risen, and the annual rate has risen to 11.87 percent. Housing prices rose to 19 percent a year on an annual basis, double the inflation rate of the period. Normalization of housing prices can also contribute to the stabilization of inflation through rents.
While Istanbul and Ankara became increasingly stagnant in residential prices, İzmir passed. Istanbul and Ankara housing prices are also the main reasons for the slowing of the Turkish index. Especially Istanbul is the locomotive of the housing sector. Istanbul housing prices, which went up to 26 percent a year on a yearly basis, dropped to 12.18 percent in March and continue to stay below the Turkish average. On a quarterly basis and in March, Istanbul housing prices remained below Turkey’s.
What is interesting is the acceleration of housing prices together with the immigration of İzmir. In the first quarter of the year, İzmir’s housing prices went up to 50 percent of Turkey’s average with 5.23 percent. The annual increase was also 19 percent, with more than 50 percent of the new average. While Istanbul is below average, İzmir can be over 50 percent.
In this case, it is also effective that Izmir will receive 24 thousand net immigrations in 2016 and Istanbul will also have net migration with 71 thousand people. One is the second most migrated province after Kocaeli, the other is the most migrating province. According to TUIK data, Istanbul received immigration of 4,408,889 while receiving immigration of 369,582 in 2016. On a net basis, 71,307 people became the province of Turkey’s largest emigration. Until recent years, the province with the highest number of immigrants has become the most immigrant province of Turkey.