Turkey saw a larger spike in house prices than any other major economy last year—and that’s after adjusting for inflation. Rental values also increased by a staggering 157% in the year to March 2023.

In light of the country’s soaring inflation, it is unsurprising that Turkey has found itself at the top of house price growth indices in recent years. However, a recent study by the Bank for International Settlements reveals that house prices in Turkey increased by 51% in 2022—after adjusting for inflation. Turkey saw a larger spike than any other major economy, with Israel following with a much more modest growth rate of 11%. And the rental market is following a similar trajectory. According to a report by the Center for Economic and Social Research (BETAM) at Istanbul’s Bahcesehir University, rental inflation reached 157% in the year to March. Istanbul, a major city located on the Bosphorus peninsula, has long been one of Turkey’s most expensive markets, but real estate values have skyrocketed in recent years. Turkish consultancy Endeksa reported a staggering 480% increase in the price of Istanbul real estate per square metre in the two years to May. Meanwhile, rents have surpassed average incomes in the city.