Are property prices in turkey falling?

Property prices in turkey

Endeksa indicated that the average housing price in Turkey is about 3700 Turkish lira (290$) per square meter. This means the property prices in turkey in general increased by 23.6% on an annual basis to November 2021.  

Based on Fortune Magazine, Turkey, led all countries for the fifth straight quarter in the fastest-growing home prices on earth. In that home buyers in turkey are seeing the biggest increases in their home prices on earth. 

Starting from these two points we can indicate that real estate prices in Turkey are not falling…

Ever since Turkey published Land Register Law in 2012, it has always been an ideal mid to long-term investment, and house owners are seeing the positive effects of their real estate investment and will continue to do so in the near future. 

We will switch the question here…

Why property prices in Turkey are increasing? 

Covid-19:

Corona pandemic made a huge shift in residential property trends. People started to look for property with large spaces in villages and resorts more than residing in congested cities.

Notable places such as Antalya, Fethiye, Marmaris, and Bodrum are attracting thousands of home buyers to reside or invest in. 

House prices in Antalya:

the average property price in October in Antalya is about 415.000 Turkish lira, seeing an increase of about 30% compared to the same month in 2020.  

House prices in Fethiye, Muğla:

the average property price in October in Fethiye is about 760.000 Turkish lira, seeing an increase of about 29% compared to the same month in 2020.  

House prices in Marmaris, Muğla:

the average property price in October in Marmaris is about 870.000 Turkish lira, seeing an increase of more than 40% compared to the same month in 2020.  

House prices in Bodrum, Muğla:

the average property price in October in Bodrum is more than 1.500.000 Turkish lira, seeing an increase of about 70% compared to the same month in 2020. 

Economy:

As housing-related inflation was 21.30% last month in October 2021, reflecting soaring rents, valuations, and mortgage rates.

As well as the depreciation of the Turkish lira against the US dollar rises the demand for buying real estate by foreign buyers and investors to buy or invest in real estate in Turkey, which can another factor in increasing property prices in turkey.

property prices in turkey - CPI annual rate of change in turkey October 2021
Consumer Price Index, October 2021 (TURKSTAT)

Construction cost:

The building construction cost index increased by 42.97% annually and 1.06% monthly in turkey. Turkey is importing many construction materials like iron and cement from abroad. So because of the devaluation of the Turkish lira against the dollar increases material prices in the Turkish lira which affects property prices in turkey.

What are the average property prices in turkey?

We will discuss the property prices in the most notable cities in turkey:

Istanbul:

The prices in Istanbul are increasing rapidly due to its economic growth and modern technologies in infrastructure it adapts. Housing prices in Istanbul in October have increased by 30% compared to the same month in 2020. Thus the average property price in Istanbul was about 530.000 Turkish lira.

Izmir:

Izmir Recently has witnessed a significant increase in terms of international investments. The housing prices in Izmir in October have increased by more than 30% compared to the same month in 2020. Thus the average property price in Izmir was about 475.000 Turkish lira.

Ankara: 

The housing prices in Ankara in October have increased by more than 23% compared to the same month in 2020. Thus the average property price in Ankara was about 270.000 Turkish lira.

Bursa:

The housing prices in Bursa in October have increased by more than 26% compared to the same month in 2020. Thus the average property price in Bursa was about 320.000 Turkish lira.

Mersin:

The housing prices in Mersin in October have increased by more than 34% compared to the same month in 2020. Thus the average property price in Mersin was about 280.000 Turkish lira.

Antalya:

We discusses the property prices in Antalya previously in this article.

Why Do Home-buyers Choose Turkey To Buy Real Estate?

There Are Several Reasons For Choosing Turkey To Invest In Real Estate:

  1. Reasonable Real Estate Price: Real estate prices in Turkey, in general, are still very competitive in comparison to other countries like (Spain, Portugal, and Greece).
  2. Turkish Citizenship Opportunity: Foreign nationals who are purchasing real estate in Turkey with a total value of 250,000$ or more have the right to apply for Turkish citizenship for themselves and their families.
  3. Lower Cost Of Living: According to Numbeo, the Cost of living in Turkey is, on average, 62.70% lower than in the United States, while the rent there, on average, is 84.39% lower than in the United States. And a family of four estimated monthly costs is 12,924TL without rent which is approximately 1200$. 
  4. lower Income / Property Tax: Turkey has an average of 34% income tax which is somewhat above the worldwide average percentage. But the tax on property percentage in Turkey, which is 0.001%, is below the total tax percentage taken in the world. 
  5. Modern Construction Technology Adoption: Many construction firms in Turkey are taking steps to improve construction and infrastructure by adopting technologies. 
  6. Turkey’s Unique Geographical Location: Turkey is the bridge between east and west. And the unique Mediterranean climate makes Turkey one of the most attractive destinations in the world. 
  7. Profitable For Investors: The fluctuation in the Turkish currency exchange rate against other currencies like the dollar and euro, increases the desire of foreign buyers and investors to buy or invest in real estate in turkey. After the Central Bank of the Republic of Turkey (CBRT) cut the policy rate by 100 basis points from 16% to 15% yesterday on November 18; the Turkish lira lost 46.50% of its value against the dollar on a yearly basis. Despite the expansion of urbanization in Turkey the demand for real estate is exceeding the supply, this leads to generating a high return on selling and renting. 

How does the Turkish lira’s depreciation effects on real estate market?

Real estate prices have not yet been affected by the devaluation of the currency. The Turkish real estate market has not yet seen a significant rise in prices to compensate for the difference in the exchange rate of the Turkish lira, since the property prices in turkey, in general, have increased by only 1.4% in October compared to September.    

We answered this question in a previous article you can read the full article by clicking here.

Join The Discussion

Compare listings

Compare
Search
Other Features