Turkey has become the Organization for Economic Cooperation and Development (OECD) leader in house price growth, recording extraordinary growth over the past nine years, as house prices soared to 1740.7 from an index of 100 in 2015 by the third quarter of 2024.
According to OECD house price data, this accounts for a staggering 1640.7% nominal increase (16.4 times) in average house prices over the period. Similarly, the rent index jumped from 100 to 949.4, representing an increase of 849.4% (8.5 times) over the same time period.
In real terms, a house that cost ₺500,000 ($171,039) at the end of 2015 is now worth ₺8.7 million ($245,083), while a property that was previously valued at ₺1 million has risen to ₺17.4 million. Rental prices have followed suit; a house rented for ₺2,500 in 2015 now costs ₺23,700, while a house renting for ₺5,000 has risen to ₺47,500. House prices in Turkey have risen to an unprecedented degree
According to data compiled by business-focused website dunya.com, house prices in Turkey have outpaced global trends to an unprecedented degree, far exceeding the OECD average of 84% and the eurozone average of 44.4% over the same period, with growth almost 19.5 times the OECD average. According to the OECD:
Iceland recorded growth of 154% (1.5 times), lagging well behind Turkey.
It was followed by Lithuania with growth of 136%.
Portugal saw growth of 127.8%.
The Czech Republic saw growth of 123%.
Estonia saw growth of 112%.
The US saw a 97.5% increase, placing it among the top 10 countries with the highest house price growth.
Elsewhere, house price growth ranged from 10% to 85%.
While rents in Turkey have almost doubled in nine years, no OECD country has seen cumulative rent growth exceeding 100%. Turkey’s closest follower, Hungary, saw an 88.2% increase, falling short of doubling. Countries such as Lithuania (77.1%), Slovenia (71.9%), Ireland (68.3%) and Poland (67.6%) saw relatively high rent growth. The US saw a 47.7% increase, while Japan was the only country to see a decrease in rents (-0.3%). Among the countries with the lowest growth, Italy (8.7%), South Korea (8.6%), France (7.5%) and Greece (3.5%) showed the lowest cumulative rent growth over the period. Pandemic-era boom
House prices and rents in Turkey have risen sharply since the second half of 2021, driven by internal migration, refugee influx and increased foreign demand during the pandemic, with the trend accelerating further in early 2022.
Between 2015 and 2021, house prices increased by 140.5% and rents by 172.6%. Between 2022 and 2024, these figures increased even more, with house prices increasing by 624% (6.2 times) and rents by 450% (4.5 times).
Factors contributing to this include increased foreign demand for rental properties and rapidly rising lending rates since mid-2023, which has made home ownership increasingly unaffordable, further fuelling rental demand.
According to OECD house price data, this accounts for a staggering 1640.7% nominal increase (16.4 times) in average house prices over the period. Similarly, the rent index jumped from 100 to 949.4, representing an increase of 849.4% (8.5 times) over the same time period.
In real terms, a house that cost ₺500,000 ($171,039) at the end of 2015 is now worth ₺8.7 million ($245,083), while a property that was previously valued at ₺1 million has risen to ₺17.4 million. Rental prices have followed suit; a house rented for ₺2,500 in 2015 now costs ₺23,700, while a house renting for ₺5,000 has risen to ₺47,500. House prices in Turkey have risen to an unprecedented degree
According to data compiled by business-focused website dunya.com, house prices in Turkey have outpaced global trends to an unprecedented degree, far exceeding the OECD average of 84% and the eurozone average of 44.4% over the same period, with growth almost 19.5 times the OECD average. According to the OECD:
Iceland recorded growth of 154% (1.5 times), lagging well behind Turkey.
It was followed by Lithuania with growth of 136%.
Portugal saw growth of 127.8%.
The Czech Republic saw growth of 123%.
Estonia saw growth of 112%.
The US saw a 97.5% increase, placing it among the top 10 countries with the highest house price growth.
Elsewhere, house price growth ranged from 10% to 85%.
While rents in Turkey have almost doubled in nine years, no OECD country has seen cumulative rent growth exceeding 100%. Turkey’s closest follower, Hungary, saw an 88.2% increase, falling short of doubling. Countries such as Lithuania (77.1%), Slovenia (71.9%), Ireland (68.3%) and Poland (67.6%) saw relatively high rent growth. The US saw a 47.7% increase, while Japan was the only country to see a decrease in rents (-0.3%). Among the countries with the lowest growth, Italy (8.7%), South Korea (8.6%), France (7.5%) and Greece (3.5%) showed the lowest cumulative rent growth over the period. Pandemic-era boom
House prices and rents in Turkey have risen sharply since the second half of 2021, driven by internal migration, refugee influx and increased foreign demand during the pandemic, with the trend accelerating further in early 2022.
Between 2015 and 2021, house prices increased by 140.5% and rents by 172.6%. Between 2022 and 2024, these figures increased even more, with house prices increasing by 624% (6.2 times) and rents by 450% (4.5 times).
Factors contributing to this include increased foreign demand for rental properties and rapidly rising lending rates since mid-2023, which has made home ownership increasingly unaffordable, further fuelling rental demand.
