<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>In Turkey, the housing market is affected by various factors, and housing prices are shaped according to current conditions. In this study, the relationship between the housing price index (HPI) and economic variables (inflation and exchange rate) in Turkey was investigated. We used a 10-year time period for this study, from January-2010 to December-2019, with monthly data frequency. For our research, we employ the Wavelet Coherence Transformation (WCT) method. The results show that there is a positive relationship between inflation and housing prices in the short and long run. In addition, a continuous rise in inflation led to an increase in housing prices all over the period from 2010 to 2019. The findings of this study can aid in achieving the goal of the research by offering evidence-based perceptions of how housing prices and different economic variables are related. Housing costs in Turkey increased as a result of the substantial likelihood that the Turkish lira would weaken. The expansion of global inflation is a further anticipated factor contributing to the rise in housing costs in Turkey. This study can also be used by investors to help them decide whether to engage in the Turkish real estate industry.</p>
</abstract>

In Turkey, the housing market is affected by various factors, and housing prices are shaped according to current conditions. In this study, the relationship between the housing price index (HPI) and economic variables (inflation and exchange rate) in Turkey was investigated. We used a 10-year time period for this study, from January-2010 to December-2019, with monthly data frequency. For our research, we employ the Wavelet Coherence Transformation (WCT) method. The results show that there is a positive relationship between inflation and housing prices in the short and long run. In addition, a continuous rise in inflation led to an increase in housing prices all over the period from 2010 to 2019. The findings of this study can aid in achieving the goal of the research by offering evidence-based perceptions of how housing prices and different economic variables are related. Housing costs in Turkey increased as a result of the substantial likelihood that the Turkish lira would weaken. The expansion of global inflation is a further anticipated factor contributing to the rise in housing costs in Turkey. This study can also be used by investors to help them decide whether to engage in the Turkish real estate industry.

A 10-Year Analysis of Housing Prices and The Influence of Economic Factors in Turkey

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

In Turkey, the housing market is affected by various factors, and housing prices are shaped according to current conditions. In this study, the relationship...

A 10-Year Analysis of Housing Prices and The Influence of Economic Factors in Turkey

Published Online: Oct 06, 2023

Page range: 100 - 112

Received: Aug 02, 2023

Accepted: Sep 05, 2023

DOI: https://doi.org/10.2478/fiqf-2023-0022

Keywords
Consumer Price Index (CPI), House Price Index, Exchange rate, Wavelet method, Economic Indicator

© 2023 Muhammad Muddasir et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

A 10-Year Analysis of Housing Prices and The Influence of Economic Factors in Turkey

Published Online: Oct 06, 2023

Page range: 100 - 112

Received: Aug 02, 2023

Accepted: Sep 05, 2023

DOI: https://doi.org/10.2478/fiqf-2023-0022

KeywordsConsumer Price Index (CPI), House Price Index, Exchange rate, Wavelet method, Economic Indicator

© 2023 Muhammad Muddasir et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
Consumer Price Index (CPI), House Price Index, Exchange rate, Wavelet method, Economic Indicator