Turkey's home price growth stays below inflation in November

Turkey's home price growth stays below inflation in November
By bne IntelliNews January 29, 2018

Home prices in Turkey rose by 11.33% y/y in November, data from the central bank showed on January 29, but the gain was once more short of annual CPI inflation, which stood at a 14-year high of 12.98% y/y in the month.

Annual home prices growth fell below annual CPI inflation in September and has subsequently stayed lower than the rate in the following two months.

Prices of new dwellings decelerated to 11.18% y/y in November from 11.65% y/y in October, central bank data also showed.

Annual inflation in Turkey eased to 11.92% in December. Expectations for Turkey's end-2018 inflation stand at 9.5% % in January, the central bank’s regular survey of businesses and analysts showed on January 12.

Homes sales in Turkey rose by 5% y/y to 1.41mn units in 2017, marking a new all-time high, following the 4% y/y gain in 2016 to 1.34mn units.

Construction confidence increased by 6.7% m/m in January after declining 1% m/m in December.

Consumer sentiment in Turkey jumped by 11% m/m in January to 72.3. That was the highest level recorded since May last year, following declines posted over the previous five months in a row.