The acceleration of home prices can vary by region, cityscape, sidewalk or even by street. The most important factor is supply demand balance. For example, it is possible to find a reasonably priced house in Bagdat Street and its district, which is called elite districts where Istanbul is always sold at high prices, because too many houses are built at the same time and supply and demand balance do not overlap. Too many new houses are built, more apartments are built, supply balances are changing as they evacuate their homes and move out of Istanbul or other neighborhoods. This inevitably affects home prices. For example, it is possible to buy a new house around Bagdat Caddesi at prices sold 3 years ago. Currently, about 800.000 TL and around 3 + 1 houses can be bought.
Is there an increase against the dollar?
Supply demand balance is affecting home prices. What are the prices in the districts where there are so many increases? Although prices seem to have increased in new residential areas, there is no significant increase in prices when you index prices. For example, three years ago, a house sold for $ 200,000 and $ 100,000 is now worth 350,000 TL. Although the real price of the house seems to have increased by almost 70% in 3 years, there is no price change in dollar terms.
Pay attention to the inflation increase!
The significant increase in inflation over the past two years has also affected home prices. So if you are going to sell a house and buy a house, if you have accumulated like gold in dollars, the variability in house prices will not affect you very much. However, the increase in construction costs on TL basis will increase the prices of houses. House prices will increase in TL terms and will be proportional to the increase in inflation. In the past years inflation has been around 8-9% in single digits, whereas in big cities like Istanbul, house prices increased by 20% or more. Now, inflation has risen, but home prices in the metropolitan cities increase by 10-15% a year. In summary, where the supply-demand balance does not overlap, we can talk about the declining housing prices for those who make their unit in foreign currency or gold.