The situation with prices on the Turkish real estate market is being actively discussed by industry experts and investors, causing, on the one hand, some concern, and on the other — optimism. The fact is that over the past year, under the influence of geopolitical and economic factors, the rise in prices for Turkish real estate exceeded all the wildest forecasts and expectations.
Several waves of migration and an increase in the number of people wishing to move to a prosperous country, obtain a residence permit and Turkish citizenship for real estate have contributed to the emergence of a significant shortage of properties on the market. Which, as a result, led to a record increase in the cost of renting and purchasing housing. According to experts, this trend will continue this year. Some buyers believe that market stagnation is possible.
In our expert publication, we will consider a number of topics of concern to investors, including: analysis and official sales statistics, the current situation and forecast for real estate prices in Turkey in 2023.
Content of the article:
- Analysis of the Turkish real estate market over previous years
- Changes in the Turkish real estate market
- Will real estate prices fall in Turkey?
- Is it worth buying property in Turkey now?
Analysis of the Turkish real estate market over previous years
Statistical analysis of the Turkish real estate market, according to information from TUIK showed that the number of sales in 2022 decreased by 0.4% when compared with 2021.
According to the results of the last annual period, a total of 458,622,000 residential real estate properties were purchased in the country. The largest number of transactions were recorded in the metropolis of Istanbul — 259,654 (17.5% of all apartments sold). It is followed by the capital Ankara — 126,166 transactions (8.5%) and Izmir — 83,502 sales (5.6%).
Comparative sales data 2013–2022 are shown in the graph:
Note that citizens from abroad concluded 67,490 purchase and sale transactions in 2022, which shows an increase of 15.2% compared to 2021. Of the total number of sales, the share of housing purchased by foreigners was 4.5% .
The most popular Turkish cities in which the most houses and apartments were sold to foreign investors were:
- Istanbul — 24,953;
- Antalya Province — 21,860;
- Mersin — 4 316.
Russians lead the list of the most active buyers of Turkish apartments — 16,312 transactions. They are followed by Iraqis (8,233 transactions) and Iranians (6,241 transactions).
Statistical comparative report on real estate sales to foreigners for 2013–2022:
As for the latest data for 2023, according to the Turkish Statistics Institute, in January 2023 alone, local citizens and foreigners bought 97,708 houses. Sales growth was 10.6% compared to January last year. The same trend remains in the popularity of Turkish cities. Investors choose Istanbul, Ankara and Antalya province to invest their savings.
House sales statistics in Turkey in January 2023:
Foreigners purchased 4,161 houses in January (4.3% of the total number of real estate transactions), which indicates a decrease in sales by 0.6% compared to the same period last year. Investors from abroad are most interested in apartments in Antalya (592 objects), Istanbul (380), Mersin (331). Main buyers — citizens of the Russian Federation, Iran, Iraq, Ukraine.
Comparative data on sales of real estate to foreigners in January 2023:
Changes in the Turkish real estate market
What prospects await the Turkish housing market in the near future? To understand this, it is important to navigate the changes that have already influenced it.
And, first of all, this concerns new laws adopted by the government of the country to manage and control foreign investments. Investors about these innovations must find out before purchasing Turkish real estate in order to manage your capital as profitably as possible.
Against the backdrop of an unprecedented increase in migration flows, the authorities were forced to react in order to maintain control over the current situation. In connection with this, the following changes took place in 2022:
- Increasing threshold prices for real estate for those who wish to take advantage of the state investment citizenship program. The new minimum cost was $400,000. In addition, the purchase of one property now allows only one investor to apply for a second passport. Previously, the law allowed equity participation if the cost allowed.
- Some areas in popular Turkish cities were closed for foreigners to obtain residence permits. Today there are almost 1,200 blocks in which the number of foreign citizens has reached 20% in relation to local residents.
In order to obtain a residence permit based on the right to own real estate, it is now necessary to purchase apartments, the cadastral value of which is at least $200,000 in lire equivalent at the time of execution of the transaction (these changes came into force on October 16, 2023). - Will these changes negatively impact foreigner demand in the near future? Taking into account the simple and acceptable conditions of legalization and the complex geopolitical situation, most likely, Russians and other foreign citizens in 2023 will still actively purchase square meters in the Republic of Turkey.
Tosmur district, 2+1 apartment of 110 m² in a complex built in 2010, furnished, with 2 bathrooms and 2 balconies, located 1000 m from the sea and 350 m from the center of the district, suitable for obtaining a residence permit and has a sea view.
2+1
110 m²
10864
Tosmur district - open for residence permit, 2+1 apartment with an area of 110 m² in a complex built in 2009, furnished, with 2 bathrooms and 2 balconies, located 850 m from the sea and 600 m from the center of the district.
2+1
110 m²
10863
Mahmutlar district, 1+1 apartment of 65 m² in a complex built in 2022, furnished, with 1 bathroom and 1 balcony, located 650 m from the sea and 250 m from the center of the district, in a complex with developed infrastructure.
1+1
65 m²
10862
Güllerpınarı district, 2+1 apartment of 100 m² with a separate kitchen, in a complex with the possibility of obtaining a residence permit, unfurnished, with 2 equipped bathrooms and 1 balcony, located 250 m from the sea and 50 m from the center of the district.
2+1
100 m²
10861
Oba district on the border with the center of Alanya, 2+1 apartment of 85 m², unfurnished, with 1 bathroom and an enlarged balcony space, located 300 m from the sea and 150 m from the center.
2+1
85 m²
10860
Mahmutlar district, 1+1 apartment of 65 m² in a complex built in 2016, furnished, located 450 m from the sea and 300 m from the center of the district, with a view of the surrounding area and infrastructure.
1+1
65 m²
10859
Mahmutlar district, 1+1 apartment of 55 m² in a complex built in 2022, furnished, located 650 m from the sea and 250 m from the center of the district, with views of the surrounding area and partly the sea.
1+1
55 m²
10858
Kestel district, 3+1 apartment of 175 m² in a complex built in 2017, furnished, first line - 0 m to the sea and 100 m to the center of the district, with a direct sea view and the possibility of obtaining a residence permit.
3+1
175 m²
10857
Kargicak district, 1+1 apartment of 60 m² in a complex built in 2010, furnished, 1 bathroom with bathtub, 1 balcony with sea and mountain views, 2500 m to the sea and 2000 m to the center of the district, suitable for rent and living.
1+1
60 m²
10856
Avsallar district, 1+1 apartment of 52 m² in a complex built in 2023, with a kitchen set, 1 bathroom and 1 balcony with a view of the surrounding area, 1500 m to the sea and 1000 m to the center of the district.
1+1
52 m²
10855
Kestel district, 1+1 apartment of 58 m² in a complex built in 2022, unfurnished, located 350 m from the sea and 100 m from the center of the district, with a view of the pool and the surrounding area.
1+1
58 m²
10854
Mahmutlar district, 1+1 apartment of 60 m² in a complex built in 2010, furnished, located 250 m from the sea and 100 m from the center of the district.
1+1
60 m²
10853
Mahmutlar district, 1+1 apartment with an area of 68 m² in a complex built in 2020, fully furnished, located 100 m from the sea and 300 m from the center of the district.
1+1
68 m²
10852
Mahmutlar district, 1+1 apartment of 50 m² in a complex built in 2024, furnished, located 700 m from the sea and 300 m from the center of the district.
1+1
50 m²
10851
Tosmur district, 2+1 apartment, 110 m² in a complex built in 2013, furnished, located 300 m from the sea and 100 m from the center of the district, with a view of the surrounding area and partly the sea.
2+1
110 m²
10850
Mahmutlar district, duplex 2+1 with an area of 110 m² in a complex built in 2024, furnished, located 400 m from the sea and 200 m from the center of the area.
2+1, Duplex, Penthouse
110 m²
10849
Mahmutlar district, 2+1 apartment of 120 m² in a complex built in 2007, furnished, located 50 m from the sea and 100 m from the center of the district, with a view of the pool and partial sea view.
2+1
120 m²
10848
Mahmutlar district, 1+1 apartment of 50 m² in a complex built in 2022, furnished, located 1500 m from the sea and 1200 m from the center of the district, with a transfer to the beach and mountain views.
1+1
50 m²
10847
Oba district, 2+1 apartment of 80 m² unfurnished, located 2500 m from the sea and 100 m from the center of the district, with a view of the mountains and surrounding area.
2+1
80 m²
10846
Oba district, 1+1 apartment of 60 m² in a complex built in 2024, furnished, located 3000 m from the sea and 1000 m from the center of the district.
1+1
60 m²
10845
Of course, last year, record inflation, which amounted to 83%, had a significant impact on the Turkish real estate market. In order to preserve their capital, many Turks began to acquire real estate and were not disappointed. The thing is that with such inflationary processes, the annual increase in the cost of housing reached about 203% in Turkish lira. This means that investing in the purchase of property turned out to be very profitable even against the backdrop of elevated mortgage rates. Experts believe that if inflation continues at the same rate, then interest in acquiring Turkish assets will remain unchanged.
As for interest from foreign investors, the trend for purchasing housing in the Republic of Turkey is likely to also be relevant. There are several main reasons for this:
- Despite some tightening of migration policy, the Turkish authorities offer some of the simplest and most acceptable conditions for foreigners to obtain residence permits and citizenship.
- Based on the results of last year, to control migration, the rules for issuing tourist residence permits were tightened. Therefore, some foreigners will be forced to legalize their residence in Turkey through the purchase of apartments.
- The housing market of the eastern republic offers profitable projects for both mid-level investors and wealthy investors who own large capital.
- Some difficulties in purchasing property for Russians in European countries will also play a role.
- In 2023, Turkey will celebrate the centenary of the republic and the completion of the Lausanne Agreement, the terms of which hampered the country's development.
One more factor can be added to the above: if the situation with gas supplies to EU countries is not resolved successfully, European buyers will most likely become more active in the Turkish real estate market. In 2022 alone, the number of German investors increased by 11.5%, British — by 12%. In addition, demand among the Chinese increased by 22%, which indicates good prospects for the development of the Turkish housing market.
Will real estate prices fall in Turkey?
Real estate in Turkey is becoming more expensive, and, according to industry experts, there are no prerequisites for a decrease in its value in 2023.
You should not expect a decline in prices for Turkish real estate for several objective reasons:
- The number of people wishing to become owners of Turkish apartments does not dry out, despite the traditional slight decrease in excitement in winter. Taking into account current trends and the worsening geopolitical situation, the number of people wishing to relocate to Turkey will go up. Some investors will seek to preserve their savings by purchasing property, others — find a safe place for a comfortable stay under relatively simple legalization conditions.
- According to TUIK, construction costs at the end of 2022 alone increased by 117%. The financial costs of Turkish developers, who import many building materials from abroad, are affected by logistics difficulties and rising energy prices on the world market.
- The rise in real estate prices in Turkey is associated with an imbalance between supply and demand. This is another factor that will contribute to the rise in prices of Turkish housing in 2023. Foreigners continue to actively buy apartments in new buildings and among the secondary housing, which leads to a shortage of supply and an automatic increase in the price tag.
- Over the past year, renting apartments in Turkey has become twice as expensive. It is quite natural that, against the backdrop of an increase in stable profits from rentals and general market trends, owners will increase the cost of selling their property.
- Some popular tourism centers and resort regions of the country are experiencing a slight shortage of investment-attractive land plots for the construction of residential complexes. It may take some time to develop new areas. Against this background, the remaining liquid land becomes more expensive, which affects the final cost of the apartments.
- In 2023, the government of the Republic of Turkey plans to commission several infrastructure and transport projects: new metro lines in Istanbul, the planned construction of a metro in Mersin, high-speed railway lines, highways, bridges, the Istanbul Canal and other strategically important facilities. The successful implementation of these projects will certainly affect the rise in real estate prices.
Is it worth buying property in Turkey now?
Investing in Turkish real estate is profitable and now you should not miss this chance. Primarily because 2023 will be marked by a further rise in prices. It is likely that the rise in prices will be more calm and methodical. Local and foreign investors have already adapted to difficult conditions, which means they will approach purchases carefully and consciously.
Why is it worth buying property in Turkey now? There are several main reasons:
- An opportunity to exchange money profitably.
The exchange rate of the national currency of Turkey has been falling for quite some time. This is a beneficial situation for investors from abroad who have savings in dollars and euros. You should not count on significant dividends, as the price tag for housing is growing rapidly. But the subsidence of the lira guarantees a certain benefit. - Investment ratio.
Investment in the Turkish housing market — this is a guaranteed profit for foreign investors. Experts predict that in the new year the amount of investment in the purchase and construction of real estate will reach one billion dollars. In the medium and long term, investments will bring the expected results from resale or rental. - Modern design solutions and construction technologies.
Developers offer a huge pool of proposals, including both budget options and premium segment apartments. In addition, the Turkish government continues to update old and build new urban infrastructure and roads. Therefore, each buyer will be able to choose an option that is suitable in terms of cost and characteristics. - Passive income from rentals.
Foreign citizens have the opportunity to rent out their property for a long term or on a guaranteed rental basis in cooperation with a real estate or management company. < /li> - Simple legalization of residence.
Owners of Turkish real estate can apply for a tourist residence permit or ikamet under TAPU. If the price tag for an apartment exceeds $400,000, a foreign investor has the opportunity to apply for a “golden” certificate. passport according to a simplified scheme. - Additional incentives from the Turkish authorities.
The Turkish government, in addition to simply obtaining a residence permit and citizenship, offers additional bonuses to investors, such as discounts on taxes and duties. - Absolute right of ownership.
After receiving a Turkish title, a foreigner becomes the full owner of real estate and has the right to transfer his property by inheritance or as a gift. - Reasonable cost.
Compared to the cost of apartments and taxes in European countries or the USA, prices for Turkish real estate are much lower. High quality of construction and complete readiness of objects for living make apartments in Alanya, Antalya and Istanbul is truly attractive. - Comfortable living conditions.
Turkey offers foreign citizens comfortable living conditions: wonderful climate, picturesque nature, inexpensive and high-quality food, favorable atmosphere and much more.
Regardless of the goals you set for yourself when deciding to buy real estate in Turkey, you cannot do without the help of an experienced real estate company. The housing market of the resort country has its own specifics and subtleties. The specialists of the Point Property real estate agency will help you invest your money wisely and guarantee the achievement of all investment goals.
Tosmur district, 2+1 apartment of 110 m² in a complex built in 2010, furnished, with 2 bathrooms and 2 balconies, located 1000 m from the sea and 350 m from the center of the district, suitable for obtaining a residence permit and has a sea view.
2+1
110 m²
10864
Tosmur district - open for residence permit, 2+1 apartment with an area of 110 m² in a complex built in 2009, furnished, with 2 bathrooms and 2 balconies, located 850 m from the sea and 600 m from the center of the district.
2+1
110 m²
10863
Mahmutlar district, 1+1 apartment of 65 m² in a complex built in 2022, furnished, with 1 bathroom and 1 balcony, located 650 m from the sea and 250 m from the center of the district, in a complex with developed infrastructure.
1+1
65 m²
10862
Güllerpınarı district, 2+1 apartment of 100 m² with a separate kitchen, in a complex with the possibility of obtaining a residence permit, unfurnished, with 2 equipped bathrooms and 1 balcony, located 250 m from the sea and 50 m from the center of the district.
2+1
100 m²
10861
Oba district on the border with the center of Alanya, 2+1 apartment of 85 m², unfurnished, with 1 bathroom and an enlarged balcony space, located 300 m from the sea and 150 m from the center.
2+1
85 m²
10860
Mahmutlar district, 1+1 apartment of 65 m² in a complex built in 2016, furnished, located 450 m from the sea and 300 m from the center of the district, with a view of the surrounding area and infrastructure.
1+1
65 m²
10859
Mahmutlar district, 1+1 apartment of 55 m² in a complex built in 2022, furnished, located 650 m from the sea and 250 m from the center of the district, with views of the surrounding area and partly the sea.
1+1
55 m²
10858
Kestel district, 3+1 apartment of 175 m² in a complex built in 2017, furnished, first line - 0 m to the sea and 100 m to the center of the district, with a direct sea view and the possibility of obtaining a residence permit.
3+1
175 m²
10857
Kargicak district, 1+1 apartment of 60 m² in a complex built in 2010, furnished, 1 bathroom with bathtub, 1 balcony with sea and mountain views, 2500 m to the sea and 2000 m to the center of the district, suitable for rent and living.
1+1
60 m²
10856
Avsallar district, 1+1 apartment of 52 m² in a complex built in 2023, with a kitchen set, 1 bathroom and 1 balcony with a view of the surrounding area, 1500 m to the sea and 1000 m to the center of the district.
1+1
52 m²
10855
Kestel district, 1+1 apartment of 58 m² in a complex built in 2022, unfurnished, located 350 m from the sea and 100 m from the center of the district, with a view of the pool and the surrounding area.
1+1
58 m²
10854
Mahmutlar district, 1+1 apartment of 60 m² in a complex built in 2010, furnished, located 250 m from the sea and 100 m from the center of the district.
1+1
60 m²
10853
Mahmutlar district, 1+1 apartment with an area of 68 m² in a complex built in 2020, fully furnished, located 100 m from the sea and 300 m from the center of the district.
1+1
68 m²
10852
Mahmutlar district, 1+1 apartment of 50 m² in a complex built in 2024, furnished, located 700 m from the sea and 300 m from the center of the district.
1+1
50 m²
10851
Tosmur district, 2+1 apartment, 110 m² in a complex built in 2013, furnished, located 300 m from the sea and 100 m from the center of the district, with a view of the surrounding area and partly the sea.
2+1
110 m²
10850
Mahmutlar district, duplex 2+1 with an area of 110 m² in a complex built in 2024, furnished, located 400 m from the sea and 200 m from the center of the area.
2+1, Duplex, Penthouse
110 m²
10849
Mahmutlar district, 2+1 apartment of 120 m² in a complex built in 2007, furnished, located 50 m from the sea and 100 m from the center of the district, with a view of the pool and partial sea view.
2+1
120 m²
10848
Mahmutlar district, 1+1 apartment of 50 m² in a complex built in 2022, furnished, located 1500 m from the sea and 1200 m from the center of the district, with a transfer to the beach and mountain views.
1+1
50 m²
10847
Oba district, 2+1 apartment of 80 m² unfurnished, located 2500 m from the sea and 100 m from the center of the district, with a view of the mountains and surrounding area.
2+1
80 m²
10846
Oba district, 1+1 apartment of 60 m² in a complex built in 2024, furnished, located 3000 m from the sea and 1000 m from the center of the district.
1+1
60 m²
10845
These materials have been prepared for informational purposes and are not of a commercial nature.
Point Property — is a certified real estate agency that specializes in providing a full range of real estate services for residential and commercial real estate transactions in Turkey. Our company takes care of all the organizational aspects of a real estate transaction: searching for an object, organizing a sightseeing tour, assistance in collecting documents and checking the legal purity of documentation, support in re-registration of ownership. In addition, we provide our customers with a wide range of after-sales services.
