Socio-Economic Structure and Its Implications for Real Estate Markets

This chapter examines the socio-economic structure of Türkiye and its implications for real estate markets. This chapter employed both qualitative and quantitative data. Qualitative investigations indicate that economic and social development significantly influences the trajectory of the real estate market, particularly in light of current global trends. Additionally, annual data from 11 provinces, spanning from 2013 to 2023, was used for quantitative analysis using the fully modified ordinary least squares (FMOLS) model. Dummy variables were introduced to capture the effects of the COVID-19 pandemic and the February 2023 earthquake. The findings from the study reveal that demographic changes have positive and significant impacts on the Turkish House Price Index (HPI). The results indicate a significant variance across different educational stages. Education exceeding that of a primary school certificate establishes a significant long-term relationship between housing sales (HS) and the Turkish HPI. Furthermore, we find a significant relationship between household size (HLDS) and the Turkish HPI for individuals holding master’s and doctoral degrees but not for those possessing other degrees. Additionally, the findings illustrate a positive long-term relationship between population groups with varying educational levels (EDL) and the Turkish HPI, with the exception of those with only a primary school education. This indicates that a higher level of education correlates with an elevated Turkish HPI. The COVID-19 pandemic and the February 2023 earthquake exerted a significant positive influence on the Turkish HPI.