Determination of the Factors That Affect House Prices in Turkey by Using Hedonic Pricing Model

Abstract

The primary purpose of this paper is to analyze the marginal effects of various features of the houses on the prices to observe the price changes in the Turkish housing market which follows a heterogeneous pattern. As the second concern, it is aimed to declare the results and additionally to define Turkish housing market and its submarkets which affect the market itself and to calculate the pure price changes of the houses with constant features. Hedonic pricing model is applied on the data obtained via the house price index study performed at the Central Bank of Turkey. For the period between December 2010 and June 2012, under the constant housing features, hedonic price indexes are calculated as 6.21% for Turkey, 5.93% for İstanbul, and 5.05% and 2.83% for Ankara and İzmir respectively.