New Home Prices in Türkiye: Will they increase in 2024?
When answering any inquiry regarding upcoming price
rates or the anticipated cost of properties within Turkey's real estate market,
a typical approach is to analyze data from the previous years, focusing on the
sales market. When did it peak? Why did it go down? Etc.
According to recent reports, the real estate market in
Turkey is expected to continue its steady growth in 2024.
With the inflation rates still rising, the non-stop flow of
tourism, and upcoming major projects, the prices of Turkish properties and
houses have been increasing steadily.
This is because The New Home Prices for 2024 in Türkiye are
not influenced by the overall economic state of the country but by high demand
from foreign investors seeking Citizenship, a safe haven amid wars, and the
non-stopping flow of tourism.
The Real Estate market in Turkey has already proved its
resilience to major pandemics like COVID-19 in 2020, global inflation, and the
fall of the Turkish Lira against the USD, where home prices sustained their
high-sale rate, reaching their peek in 2021 (amid the global pandemic). With
Reports explicitly stating that Interest rates in Türkiye are projected to
remain low, we can see a higher appeal in the housing market.
The lack of available building land in urban centers,
especially in Istanbul, has forced housing construction companies to move to
the suburbs with large projects; this has caused the home prices in peripheral
areas like Beylikduzu, Basaksehir, Buyukcekmece, etc., to witness a massive
increase in the pricing within a few years, from 2020 and 2022. Mass housing
construction is also increasing rapidly.
Brief Look at the median rates of Turkish Homes and
Properties the past years:
Over the past ten years, data regarding home sales in
Istanbul - in general - have remained at their levels, with a price increase of
about 13.6 percent, compared to home prices in 2014 and this day - (the year
According to the official data from the Turkish Statistical
Authority, the sales of apartments to foreign buyers in the last month of the
year reached 6,386 units, showing an increase of 4.98% from the previous month.
Foreigners' purchases accounted for 3.1% of all residential apartment sales
that month. Additionally, the annual sales of apartments to foreign buyers
reached 67,490 units, a 15.2% increase from the previous year. Foreigners'
purchases made up 4.5% of all apartments sold in Turkey throughout the year.
The price per square meter of a property built in 2014 was
about 2231 TL, while the price per square meter of a property built in early
2023 was about 21,260 TL.
Considering the difference in the exchange rate of the Lira
against the dollar, the equation is as shown in the following table:
What factors have caused the Average prices of Homes in
Turkey to Increase in the past years?
One of the leading causes of the continued growth of house
prices in Turkey is its growing tourism industry. The country is admired for
its stunning beaches, historical sites, and moderate climate, all of which have
made it a popular destination for eager travelers; who can enter it quickly.
Moreover, Turkey was one of the few countries that adjusted cleverly to tourism
impediments during COVID-19, it did not impose major lockdowns and restrictions
during the pandemic, and although the country did take sufficient measures to
diminish the virus’s expansion and keep it under control, it kept its tourism
sector alive, welcoming visitors and granting visas easily.
This has benefitted homeowners of tourist real estate like
residential properties by the seas and other rural areas, as data revealed that
the demand for vacation homes and the average costs of houses in tourist areas
like the Turkish Riviera and the Aegean coast has risen.
Another factor contributing to the rise in New Home Prices
in Turkey is the country's strong economic growth. Turkey's GDP has been
steadily increasing annually. In contrast, the Government's efforts to boost
foreign investment have also played a role in the market's positive performance
(including the Citizenship for Investment Program, Tax Exemption, Providing
convenient options for mortgage loans, and house inheritance.). Subsequently,
this has increased demand for homes in areas resided by foreigners in Turkey
within Istanbul City, Ankara, and Antalya, particularly in sales of the
commercial and residential sectors. Not to mention the Home Prices in Turkey
are relatively much more convenient in comparison to the average pricing of
properties in Europe, the United States, Russia, Canada, etc... taking into
consideration the overall quality of construction materials, modern design,
climate, social facilities, and general merits of living in a politically
stable and civilized country. Many foreign investors can get their dream home
with an outstanding view easily, costing them a comparatively much less amount
As obtaining a residence permit has become more accessible
in recent days, foreign buyers have increased their investments in Turkish real
estate, typically leading to a rise in home prices. The Government's efforts to
simplify the process of obtaining a permit for a foreign buyer and his family
have made it more attractive for them to start purchasing homes, whether for
investment, tourism, or residency.
Likewise, part of an easy and fast process for foreigners to
obtain residence permits in Turkey included ownership of homes and/or
properties, stimulating a win-win situation for both parties and increasing
demand and costs. This has resulted in more listings for existing buildings and
new constructions to sell.
Easy Ownership of Turkish Properties by Foreigners
The ease of property ownership in Turkey has contributed to
the increase in home prices in Turkey. The Government's efforts and seasonally
published laws to simplify the property buying process and make it more
accessible to foreign buyers have played a key role in attracting investment
and the median increase in home price cost. Such as the implementation of
existing laws that allow for freehold ownership of homes by foreigners and the
elimination of restrictions on property ownership largely encouraged investors
to purchase properties in Turkey.
A recent report published by the national Government of
Turkey has shown that the number of transactions involving foreign ownership of
Turkish properties has increased in recent months. This trend has led to a
significant increase in home prices in certain areas, particularly in popular
tourist destinations. The report includes data on the total number of units
sold and the average price per unit and is published monthly. The exact figures
may vary depending on location and other factors, but the overall trend is
The data also shows that the average price per unit has
increased over time, with foreign buyers often willing to pay a premium for
properties in desirable areas. In addition, the report notes that foreign
buyers are increasingly choosing to make a payment in cash rather than through
traditional financing methods.
This trend is not limited to just a few specific locations
but is seen across the country, with many countries and cities experiencing the
same increase in prices.
Overall, the data suggest that foreign ownership of Turkish
properties plays a significant role in driving home prices in the country, and
this trend is likely to continue in the coming months and years. However, it is
worth noting that depending on the choices and preferences of the buyers, the
prices may be priced differently.
New Homes Prices in Turkey 2024
Therefore, as the Turkish Government proceeds to maintain
the previously mentioned factors in its regulations, it is highly expected that
the Turkish real estate market will continue its growth for the year 2023. The
country's strong economic performance and increasing foreign investment are
expected to continue driving prices upward, particularly in major cities. Many
builders are expected to release new homes priced competitively, making them
more affordable for a broader range of buyers.
The past year has seen a steady rebound in the housing
market, with home sales picking up in the latter half of 2022, particularly in
the months of November and Dec. This strong performance has led many experts to
believe that builders will be looking to capitalize on this renewed interest in
the housing market, and may be planning to build and release a large number of
new homes in the coming year.
Many experts are also closely watching the prices of these
new builds. Even though costs of materials, jobs, and labor rose, many
builder/s are expected to release new homes that are priced competitively,
making them more affordable for a wider range of buyers; Month by month, we
will continue to see more custom home listings being released, and the nation's
builders will be closely watched as they continue to innovate and improve the
housing market in Turkey. The new homes that are being built are not only
attractive in terms of price but also in terms of design, location, and overall
All in all, the housing market in Turkey is looking very
promising for 2024, with a wide range of new homes available at competitive
prices. The market is set to be an exciting one to watch, as buyers will have a
lot of options to choose from, and the nation's builders continue to push the
boundaries of what's possible. The market shifts and high house sales of the
past years have set the stage for an intriguing and positive year ahead.