Turkey housing prices show biggest jump globally

Prices in Turkey’s residential real estate recorded the highest gains in the world in the first quarter of the year amidst rising concerns of a bubble market emerging in housing globally.

According to a report put together by Knight Frank, housing prices across the world are rising at their fastest rate since the last quarter on 2006, with its Global House Price Index, a benchmark average of prices across 56 countries, increasing 7.3 percent in the year to March 2021.

“With thirteen countries recording double-digit price growth in the year to Q1 2021 it is no surprise that talk of postpandemic housing bubbles is increasing but authorities are already starting to take action,” the report said.

Since January 2021, authorities in China, New Zealand, and Ireland have intervened with a range of measures from tighter lending rules to higher stamp duties for multiple purchases, it added. Canada is also looking closely at a national vacancy tax and China is mulling over a national property tax.

In Turkey, housing prices soared by 32 percent on an annual basis but once inflation is stripped out, the gains are limited to around 16 percent.

There are also large economies where prices dipped in the first three months of the year due to the pandemic and concerns of oversupply. In Spain and Italy home prices dipped 1.8 percent 1.6 percent respectively.