@article{article_1623024, title={Analysis of Factors Affecting House Prices in Türkiye: Evidence from the Fourier Approach}, journal={Hitit Sosyal Bilimler Dergisi}, volume={18}, pages={652–668}, year={2025}, DOI={10.17218/hititsbd.1623024}, author={Sizer, Lütfü}, keywords={Konut Fiyatları, İnşaat Maliyet Endeksi, BIST İnşaat Endeksi, Döviz Kuru, Fourier Yaklaşımı}, abstract={In developing countries such as Türkiye, the housing sector plays a crucial role in shaping both the macroeconomic balance and the quality of life of individuals. Changes in house prices have a significant impact on household consumption and investment decisions. Therefore, understanding the dynamics that affect house prices is critical for shaping economic policies effectively. In this study, the factors affecting house prices in Türkiye are analyzed using econometric models based on the Fourier approach. The main objective of the study is to determine the effects of variables such as BIST Construction Sector Index, exchange rate and Construction Cost Index on house prices. In the analysis using the data set covering the period between December 2016 and September 2024 for Türkiye, the Fourier ADL (Autoregressive Distributed Lag) cointegration test, which is an effective tool to detect cointegration relationships in time series data and to examine possible break points, was applied. To determine the stationarity level of the variables used in the model, the Augmented Dickey-Fuller (ADF) test, one of the traditional unit root tests, and the Fourier ADF unit root test, which accounts for structural breaks, were applied. The results of both tests show that the variables are non-stationary at level values, but become stationary when first differences are taken. To examine the long-run relationship between the variables, Banerjee, Arcabic and Lee (2017) Fourier ADL cointegration test was applied and a significant cointegration relationship was found in the long run. Finally, the long-run cointegration coefficients are estimated using the FMOLS (Fully Modified Least Squares) method. The results show that house prices are significantly affected by macroeconomic factors such as construction sector indices and exchange rates. The Fourier approach offers a more flexible analysis compared to traditional cointegration models. The study provides important findings on the dynamics of the housing market in Türkiye and provides valuable information for policymakers and investors that can be taken into account when making strategic decisions.}, number={3}, publisher={Hitit Üniversitesi}