Turkey real estate price forecast in 2023

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

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:

Turkey real estate price forecast in 2023

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:

Turkey real estate price forecast in 2023

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:

Turkey real estate price forecast in 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:

Turkey real estate price forecast in 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.
Examples of real estate in Turkey

187 000

Tosmur district, apartment 2+1, area 110 m², year of construction 2009, distance to the sea - 400 m, to the center - 200 m, suitable for residence permit from the end of September.

room

2+1

area

110 m²

id

9854

110 000

Popular area Mahmutlar, apartment 1+1, area 55 m², year of construction 2016, distance to the sea - 300 m, to the center - 150 m.

room

1+1

area

55 m²

id

9853

108 000

Furnished apartment 1+1, 70 m², built in 2016, 3rd floor, distance to the sea - 250 m, to the center - 350 m.

room

1+1

area

70 m²

id

9852

Mahmutlar, apartment 2+1, 110 m², built in 2008, 5th floor, distance to the sea - 500 m, to the center - 250 m.

room

2+1

area

110 m²

id

9851

Mahmutlar is a furnished 1+1 apartment with an area of 55 m², located on the 8th floor of a residential complex with developed infrastructure. Year of construction - 2015. To the sea - 600 meters, to the center - 300 meters.

room

1+1

area

55 m²

id

9850

Complex with hotel infrastructure in the Mahmutlar area, 600 meters from the coast

room

2+1

area

110 m²

id

9849

203 500

Stylish project with hotel infrastructure for comfortable living

room

2+1

area

120 m²

id

9848

126 500

Kargicak district - 2+1 apartment, 110 m², furnished, built in 2010, located on the 2nd floor, 200 m from the sea and 100 m from the center.

room

2+1

area

110 m²

id

9847

121 000

Kargicak area, furnished 1+1, 50 m², year of construction 2023, to the sea 1500 m, to the center 1250 m

room

1+1

area

50 m²

id

9846

253 000

Stylish and cozy house right on the seashore with developed infrastructure

room

3+1

area

150 m²

id

9845

121 000

Avsallar district, 1+1, 57 m², year of construction 2023, 550 m to the sea, 1000 m to the center, gated club-type complex

room

1+1

area

57 m²

id

9844

101 500

Mahmutlar district, Furnished 2+1, 115 m², year of construction 2010, 150 m to the sea, 200 m to the center

room

2+1

area

115 m²

id

9843

Mahmutlar district, 1+1, 47 m², year of construction 2024, 800 m to the sea, 650 m to the center. Hotel infrastructure

room

1+1

area

47 m²

id

9842

76 000

Area - Upper Oba, 1+1, 50 m², year of construction 2022, to the sea 2500 m, to the center 2000 m

room

1+1

area

50 m²

id

9841

77 500

Tosmur district, new 1+1, 50 m², year of construction 2025, 1000 m to the sea, 500 m to the center. Well-known developer

room

1+1

area

50 m²

id

9840

76 000

Oba district, 1+1, 55 m², year of construction 2022, to the sea 1500 m, to the center 900 m

room

1+1

area

55 m²

id

9839

44 000

A convenient option for living and relaxing in a new residential complex with infrastructure, just 1 km from the sea.

room

1+1

area

44 m²

id

9838

Mahmutlar district, 2+1, 70 m², year of construction 2024, 800 m to the sea, 500 m to the center. Unfurnished

room

2+1

area

70 m²

id

9837

Bright 1+1 apartment with a modern kitchen, two panoramic windows and an excellent layout - 400 meters from the sea.

room

1+1

area

45 m²

id

9836

Mahmutlar district, furnished 1+1, 55 m², year of construction 2017, 500 m to the sea, 400 m to the center

room

1+1

area

55 m²

id

9835

See more

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.

Turkey real estate price forecast in 2023

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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. 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.
  6. 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.

Examples of real estate in Turkey

187 000

Tosmur district, apartment 2+1, area 110 m², year of construction 2009, distance to the sea - 400 m, to the center - 200 m, suitable for residence permit from the end of September.

room

2+1

area

110 m²

id

9854

110 000

Popular area Mahmutlar, apartment 1+1, area 55 m², year of construction 2016, distance to the sea - 300 m, to the center - 150 m.

room

1+1

area

55 m²

id

9853

108 000

Furnished apartment 1+1, 70 m², built in 2016, 3rd floor, distance to the sea - 250 m, to the center - 350 m.

room

1+1

area

70 m²

id

9852

Mahmutlar, apartment 2+1, 110 m², built in 2008, 5th floor, distance to the sea - 500 m, to the center - 250 m.

room

2+1

area

110 m²

id

9851

Mahmutlar is a furnished 1+1 apartment with an area of 55 m², located on the 8th floor of a residential complex with developed infrastructure. Year of construction - 2015. To the sea - 600 meters, to the center - 300 meters.

room

1+1

area

55 m²

id

9850

Complex with hotel infrastructure in the Mahmutlar area, 600 meters from the coast

room

2+1

area

110 m²

id

9849

203 500

Stylish project with hotel infrastructure for comfortable living

room

2+1

area

120 m²

id

9848

126 500

Kargicak district - 2+1 apartment, 110 m², furnished, built in 2010, located on the 2nd floor, 200 m from the sea and 100 m from the center.

room

2+1

area

110 m²

id

9847

121 000

Kargicak area, furnished 1+1, 50 m², year of construction 2023, to the sea 1500 m, to the center 1250 m

room

1+1

area

50 m²

id

9846

253 000

Stylish and cozy house right on the seashore with developed infrastructure

room

3+1

area

150 m²

id

9845

121 000

Avsallar district, 1+1, 57 m², year of construction 2023, 550 m to the sea, 1000 m to the center, gated club-type complex

room

1+1

area

57 m²

id

9844

101 500

Mahmutlar district, Furnished 2+1, 115 m², year of construction 2010, 150 m to the sea, 200 m to the center

room

2+1

area

115 m²

id

9843

Mahmutlar district, 1+1, 47 m², year of construction 2024, 800 m to the sea, 650 m to the center. Hotel infrastructure

room

1+1

area

47 m²

id

9842

76 000

Area - Upper Oba, 1+1, 50 m², year of construction 2022, to the sea 2500 m, to the center 2000 m

room

1+1

area

50 m²

id

9841

77 500

Tosmur district, new 1+1, 50 m², year of construction 2025, 1000 m to the sea, 500 m to the center. Well-known developer

room

1+1

area

50 m²

id

9840

76 000

Oba district, 1+1, 55 m², year of construction 2022, to the sea 1500 m, to the center 900 m

room

1+1

area

55 m²

id

9839

44 000

A convenient option for living and relaxing in a new residential complex with infrastructure, just 1 km from the sea.

room

1+1

area

44 m²

id

9838

Mahmutlar district, 2+1, 70 m², year of construction 2024, 800 m to the sea, 500 m to the center. Unfurnished

room

2+1

area

70 m²

id

9837

Bright 1+1 apartment with a modern kitchen, two panoramic windows and an excellent layout - 400 meters from the sea.

room

1+1

area

45 m²

id

9836

Mahmutlar district, furnished 1+1, 55 m², year of construction 2017, 500 m to the sea, 400 m to the center

room

1+1

area

55 m²

id

9835

See more

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.

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