According to the Global House Price Index released by real estate consultancy Knight Frank, property prices in Türkiye experienced a significant year-on-year increase of 132% in the first quarter of 2023. The cities of Ankara, Izmir, and Istanbul saw the largest growth rates, with house prices increasing by 135.3%, 133%, and 127.3% respectively.
These remarkable price jumps can be attributed to a series of powerful earthquakes that struck the Turkish-Syrian border region in February, leading to the loss of more than 51,000 lives in Türkiye alone. The damage caused by the earthquakes is estimated to exceed $104 billion, resulting in a surge in property prices.
Türkiye ranked at the top globally for property price increases, followed by North Macedonia and Croatia, where prices surged by 18.8% and 16.6% respectively in the first three months of the year. Hungary (16.6%) and Lithuania (15.3%) completed the top five in terms of price growth.
Further analysis by Knight Frank revealed that countries such as Greece, Iceland, and Mexico also experienced substantial increases in home prices, rising by 14.5%, 13.4%, and 11.7% respectively. Portugal (11.4%) and Singapore (11.3%) also made it into the top ten countries with the highest property price growth.
However, despite these significant spikes in property prices, the global property market as a whole witnessed a slower year-on-year price growth of 3.6% in the first quarter of 2023. This figure represents a decline from the 5.7% increase recorded in the previous quarter.
Knight Frank’s Global House Price Index monitors the average residential real estate prices in 56 countries worldwide. The prices reflected in the index are not adjusted for inflation and are provided in nominal terms.
In conclusion, Türkiye experienced an unprecedented surge in property prices during the first quarter of 2023 due to the devastating earthquakes that struck the country. The impact of these natural disasters led to a tremendous increase in demand for properties, driving up prices significantly. While other countries also saw notable property price growth, the global property market as a whole experienced slower growth compared to the previous quarter.
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