The effect of housing finance provided by participation banks on housing prices and inflation in Turkey

Housing is one of the most basic housing rights of individuals. However, sometimes individuals cannot meet their housing needs, and in cases where they do, they cannot reach qualified housing. The fact that housing costs, consumer price index and interest rates are quite high make it difficult for individuals from the middle and lower income groups to acquire housing. In addition, those who want to avoid interest and stay away from interest, but who do not have enough savings to buy a house, have difficulty in financing the houses they demand. To cope with this problem, participation banks have developed housing finance models. In this study, it is aimed to determine whether the housing finance provided by participation banks in Turkey has an effect on housing prices and consumer price index. In the study, which consists of four parts, firstly, housing financing models applied in participation banks in Turkey are mentioned, then housing problems and "Housing Financing Models Applied in Participation Banks in Turkey" are discussed. In the fourth part of the study, in line with the purpose of the study, the housing loans, housing price index and consumer price index variables made by participation banks were analyzed by considering the monthly time series data covering the 2013:01-2020:12 periods. EViews 10 program was used for econometric analysis, and in the first stage, the stationarity of the series was tested with Extended Dickey Fuller (ADF) and Phillips Perron (PP) unit root tests. After examining the level at which the series are stationary, the long-term relationship between them was revealed by the Johansen Cointegration Test. Finally, the existence of a causal relationship between housing finance provided by participation banks and housing prices and consumer price index rates was tested with Granger Causality Analysis. In the light of the findings, when the findings obtained from the Granger Causality Causality Analysis, which was carried out using the data of the Turkish economy between 2013 and 2020, are evaluated in general, there are bidirectional housing loans extended by participation banks and consumer variables between housing loans extended by participation banks and housing price index variables. It can be said that there is a one-way relationship between.