The primary goal of the Central Bank of the Republic of Turkey (CBRT) is to achieve and maintain price stability through the framework of inflation targeting policy. Accordingly, predicting the future course of inflation in a precise manner is a crucial objective to maintain this goal. Therefore, monitoring developments in house prices is an important factor underlying monetary policy decisions aimed at maintaining price stability. A true measure of house prices is also an important concern for promoting financial stability. Within this framework, constructing a house price index (HPI) for Turkey had long been one of the considerations of the CBRT. The implementation of the inflation targeting regime since 2006 has reinforced that intention as the CBRT also has to be aware of any factor that may have an impact on price stability. Moreover, the global financial crisis in 2008, and the enactment of mortgage law in 2007 also made it clear that a house price index was needed for Turkey.