The housing price index for April revealed a 4.7 percent increase compared to the previous month, along with a substantial year-on-year surge of 121.3 percent.

Despite witnessing remarkable price hikes of up to 190 percent over the past year, the rate of increase notably slowed down in April, marking the lowest annual growth since March 2022.

The data also highlighted a real increase of 53 percent during the same period, resulting in an average square meter sales price of 22,841 Turkish liras across the country.

Ankara, the capital city that has experienced significant migration following recent earthquakes, recorded the highest increase in housing prices. The annual price surge in Ankara reached 126.1 percent, with an average square meter sales price of 16,800 Turkish liras. In Istanbul, prices rose by 114.1 percent in April, reaching an average square meter price of 35,114 Turkish liras. Meanwhile, Izmir witnessed a 123 percent annual increase, with an average square meter price of 26,582 Turkish liras.

Simultaneously, construction costs continued to rise, albeit at a slower pace. According to data from the Turkish Statistical Institute (TÜİK) for April, construction costs increased by 1.03 percent compared to the previous month and saw a significant year-on-year rise of 52.99 percent.

These figures represent the lowest yearly increase in the past 17 months and the lowest monthly rate in the past 19 months.

However, while the growth rate of construction costs has moderated, the labor index experienced a rapid surge in recent months due to challenges in finding workers. In April, the material cost index exhibited a 39.80 percent annual increase, while the labor index soared by 102.72 percent.

The housing market's slowdown in price growth coupled with the ongoing rise in construction costs pose both challenges and opportunities for Türkiye's real estate sector. Stakeholders will closely monitor these developments as they navigate the evolving dynamics of the housing market and its impact on the broader economy. (ILKHA)