Real Estate Prices Have Been Increasing Significantly in Turkey Since 2017. According To Trading Economy; The Housing Index In Turkey Increased To 185.30 Points, Which Records The Highest Figure Reached Since 2011. Despite that, real estate in Turkey is still cheap compared to property prices in different countries like Greece, Brazil, Spain, etc..
Today we will answer one of the most frequently asked questions regarding real estate in Turkey:
Is property cheap in turkey?
Real estate in Turkey is very affordable and it offers luxury and a modern lifestyle, according to the Turkish Statistical Institution the number of building permits in the first half of 2021 increased by 45.3% due to the increasing demand of residing in Turkey or investing in real estate in turkey.
Why is real estate cheap in turkey?
1- Turkey’s real estate market is in its infancy:
When Turkish banks started offering mortgages and the government published its Turkish citizenship through investment program a few years ago, Turkey is becoming the center of attention for real estate buyers but it is still at the beginning of the massive movement. So this is one of the reasons Turkish real estate prices are lower compared to other ones globally.
2- Cheap deed fees & taxes:
The Organisation for Economic Co-operation and Development (OECD) in 2019 found that Turkey’s property tax percentage is below the average of the total tax percentage taken in the world with only 0.001% on residences.
Property on Tax in Turkey for 2021 is indicated in the table below
|Real Estate Type||Outside the borders of metropolitan cities||Within the borders of metropolitan cities and their adjacent areas|
And the title deed registration tax is only 4% of the registered price of the property in the contract, usually, it is paid fully by the buyer or equally between the buyer and seller 2% each.
3- The pandemic (Covid-19):
With the increasing number of housing in Turkey and due to the travel restrictions imposed by most of the countries because of the pandemic covid-19, Home sales in turkey dropped to a lower level, so that property prices declined to attract people.
4- Currency exchange rate fluctuation:
The Turkish lira lost about 29.14% of its value against the dollar and 25.64% against the Euro, the devaluation of the currency could benefit foreign investors by purchasing luxury properties at lower prices or could be a good opportunity for those who want to own a number of properties in different destinations or cities within Turkey, in which the total price of the entire properties owned there is equal to the price of one real estate in other parts of the world.
5- Real estate supply increasing:
Turkey consists of 81 states, let’s give Istanbul as an example. The demand for buying real estate in districts near the new Istanbul airport and around Istanbul Canal is having a huge increase, in that, real estate prices in such regions are inclining. And the demand and supply could differ from one region to another.
Why buy a property in turkey?
Daily Sabah Announced That; in One Survey, Conducted By The U.S.-Based International Real Estate Investment Company Remote Ventures In 2020 Listed The 25 Most Advantageous Real Estate Investment Markets; Turkey Ranked 14th Among 200 Countries In Terms Of:
- ReasonableReal Estate Prices
- Profitable For Investors
- Lower Cost Of Living
- lower Income / Property Tax
- Modern Construction Technology Adoption
- Turkish Citizenship Opportunity
- Turkey’s Unique Geographical Location
- Multicultural Life In Turkey
- Qualified Education
- High-quality health care services
What Is The Average House Price In Turkey?
Endeksa recently has reported that the average housing price in turkey in 2021 is 3447₺ around 350$.
Property prices In turkey Istanbul:
Housing prices for sale in Istanbul have increased by 2.91% in the last month with an average price of 5500 TL per square meter. Accordingly, in the real estate index and regional report of 2021, the average price of a 100 square meter house purchased in Istanbul was between 432,770 TL and 721,300 TL.
Property Price In Turkey Antalya:
During the last month, property prices in Antalya have increased by 3.12% in the last month in the housing market for sale. While the average residential square meter prices in Antalya are 4,123 TL, the payback period is calculated as 19 years.
Accordingly, in the real estate index and regional report of 2021, the average price of a 100 square meter house purchased in Antalya was between 309,240 TL and 515,400 TL.
Property Prices In Turkey Izmir:
Housing prices for sale in Izmir have increased by 1.93% in the last month in the housing market for sale. While the average residential square meter prices in the city of Izmir are 4.895 TL, the payback period is calculated as 21 years.
Accordingly, in the real estate index and regional report of 2021, the average price of a 100 square meter house purchased in İzmir was between 367,111 TL and 611,900 TL.
The cheapest place in turkey to buy property:
Turkey is large and has more than 80 states, here are the cities with the cheapest real estate prices in turkey:
Hakkâri Province is a province in the southeast of Turkey. The province covers an area of 7,121 km² and had a population of 286,470 in 2018. The average housing prices in hakkari is 1.101 ₺/m2.
Şırnak is a town in southeastern Turkey. It is a new province that split from the Mardin and Siirt provinces. The Habur border gate with Iraq which is one of Turkey’s main links to Arab countries is also on Şırnak.The average housing prices in Şırnak is 1.372 ₺/m2.
Ağrı Province in eastern Turkey, near the border with Iran. The city is named as Ağrı, the Turkish name of Mount Ararat. The average housing prices in Ağrı is 1.663 ₺/m2.
Muş is a city and the provincial capital of Muş Province in Turkey. Its population is mostly Kurdish. The average housing prices in Mus is 1.733 ₺/m2.
Erzurum is a city in eastern Anatolia, Turkey. It is the largest city in and capital of Erzurum Province. It is situated 1,900 meters above sea level. The average housing prices in Erzurum is 1.745 ₺/m2
So, as you can see, real estate prices in Turkey, in general, are somewhat cheap and rather than looking at Turkey as a whole, we should assess each region’s real estate market because many factors can influence the prices of residential properties. And as the Turkish real estate market is performing a huge boom it will return to property owners with high profits over time.