International Congress on Eurasian Economies

International Congress on Eurasian Economies

26-28 June 2024 – Bishkek, KYRGYZSTAN

Paper properties

Paper ID : 2549
Status : Paper published
Language : Turkish
Topic : Sectoral Analyses
Presenter: Ph.D. candidate Hoşeng Bülbül
Session : 6B Sektörel Analiz

Are There Any Housing Bubbles in Turkey?
Türkiye’de Konut Balonları Var mı Yok Mu?

Abstract

It is very important that the housing market, which meets the most basic need of people is needed for shelter from the past to the present, has a stable structure. The instability structure of the housing market is generally associated with the presence of housing bubbles. The deviation of housing prices from their basic value and not being able to be explained by economic fundamentals leads to the formation of housing bubbles. Housing bubbles can lead to permanent losses, as it may take a long time to return to normal prices. For Turkey as a developing country, it is important to identify an unstable structure in house prices discuss the basic economic factors related to this. After the global increases in housing prices, inflation, and depreciation in the Turkish lira, Turkey has become the country with the highest housing price increases globally in 2020. In the study, the presence of bubbles in the housing market for Ankara, Izmir, Istanbul, and Turkey in general, was investigated by SADF and GSADF unit root tests for the period 2010:01-2021:02. In this context, the study examines the presence of bubbles in housing prices for Ankara, Izmir, Istanbul, and Turkey in general, which are the three cities with the highest price increases. As a result of the study, the presence of bubbles in the housing market has been determined for Ankara, Istanbul, Izmir, and Turkey in general.

JEL codes: C22, R10, R31

Korkmaz, Özge, Çağlayan Akay, Ebru, Bülbül, Hoşeng (2021). "Are There Any Housing Bubbles in Turkey?" in Proceedings of International Conference of Eurasian Economies 2021, pp.289-295, Istanbul, TURKEY and ONLINE.

DOI: https://doi.org/10.36880/C13.02549

Full paper in PDF format.

Session 6B: Sektörel Analiz

Eurasian Economists Association Kyrgyz-Turkish Manas University Istanbul Beykent University Doğuş University