In 2022-2023, Turkey saw rapid growth in real estate prices. Some experts predicted a price decline in their forecasts for this year due to a decline in high demand. However, Turkey continues to lead the world in housing price growth. We reviewed all relevant analytics to determine the projected real estate prices in Turkey in 2024.
Results for 2023
According to statistics, the Republic of Turkey ranks first in real estate price growth in many global rankings. For example, in the Global Property Guide ranking, Turkey took first place with a housing price growth rate of 41,70%. North Macedonia ranks second with a rate of 18,32%, and the UAE ranks third with a rate of 14,56%. As can be seen, other countries lag significantly behind in this indicator.
An analysis of the domestic market reveals that property prices in Turkey have increased most significantly in major cities: Ankara, Istanbul, and Izmir. It was in these major cities that the average home price exceeded the previous year's threshold, reaching 3 million TL ($106.8 thousand).
The Turkish real estate market
A decline in residential real estate sales is expected at the end of 2023. It would be logical to assume that the decline in demand would lead to lower prices. However, this prediction did not come to pass.
The Turkish real estate market is expected to reach 14.9 billion Turkish yen in 2023. By the end of 2028, this figure is expected to reach 14.1 billion Turkish yen, with a CAGR of 11.161 billion Turkish yen. This forecast was presented by the Istanbul Construction Association (İNDER).
Buying real estate in Turkey attracts many investors due to the country's excellent transportation links, favorable geographic location, abundant tourism resources, and developed infrastructure. Istanbul, the crossroads of Europe and Asia, has become a true paradise for investors and a rising star in the real estate market.
Due to the lack of available land in the central areas of major cities, large-scale construction projects have shifted to the outskirts. Massive housing construction is developing rapidly. Particular attention is being paid to providing housing for low-income families. Seismic-resistant residential areas are particularly in demand.
Top 5 Cities for Buying Property in Turkey
According to analytical reports, the following cities are in high demand for purchasing real estate in Turkey:
- Istanbul – 416 thousand transactions;
- Ankara – 214 thousand transactions;
- Izmir – 170 thousand transactions;
- Antalya – 132 thousand transactions;
- Bursa – 132 thousand transactions.
Furthermore, Alanya is experiencing rapid growth in real estate sales, reaching 201,000 units. This high figure was achieved thanks to the city's rapid development and high investment potential.
Property prices in Turkey in 2024: expert forecasts
Experts believe the trend of rapidly rising real estate prices in Turkey will continue. It will likely be virtually impossible to buy a home in Turkey at 2023 prices by the middle of next year. This is due to the following factors:
- Rising costs of building materials;
- Lack of land for development;
- rapid development of the country's major cities and increasing their investment attractiveness;
- High demand and lack of supply in the real estate rental market;
- There are a large number of large-scale construction projects in Turkey.
Is it worth buying property in Turkey?
Investing in real estate in Turkey is now more profitable than ever. This is primarily due to the fact that prices are expected to continue to rise over the next few years. While this increase may be purely methodological, favorable investment conditions currently exist. This is due to the following factors:
- Favorable currency exchange . The Turkish lira has been depreciating for many years. This situation is advantageous for foreign investors who hold their funds in dollars or euros. Therefore, the weakening lira guarantees financial gains, despite the rapid rise in housing prices.
- Rapid growth in real estate prices. In major tourist areas, there are practically no available plots of land left for construction. Consequently, land prices will rise. Ankara is the province with the fastest land price growth, with a rise of 921% (30%). Antalya ranks second with a rise of 801% (30%), and Bursa and Izmir rank third with a rise of 741% (30%).
- Investment Rate. Investing in residential property in Turkey is guaranteed to generate profits for foreign investors. Next year, investment in the real estate market will reach $1 billion. Reselling or renting out properties will generate significant profits in the long and medium term.
- Modern construction technologies. The Turkish real estate market offers both budget apartments and premium options. According to government plans for the coming years, the government will continue to renovate old and build new urban infrastructure, improving road quality. This will allow every investor to choose the optimal residential property based on price and specifications.
- Generating passive income. Investors can rent out their properties long-term or partner with real estate companies to secure guaranteed rental income.
- Fast residence permit acquisition. Property owners in Turkey can easily obtain a tourist residence permit or ikamet (Ikamet) using a TAPU. Investors who have invested over 1,000,000 rubles in real estate can obtain a "golden passport" through a simplified process. Furthermore, investors can take advantage of numerous government incentives, including tax and duty discounts, and much more.
- Reasonable prices. European countries and the United States offer significantly higher real estate prices and tax rates compared to housing costs in Turkey.
- Comfortable living conditions. Turkish citizens have full access to all the comforts of life: a pleasant climate, a pleasant atmosphere.
In summary, real estate prices in Turkey continue to rise. This is driven by many factors: rising land prices, an attractive investment climate, the ability to obtain a residence permit, and much more. Investing in Turkish real estate is a profitable investment. Buying a home in Turkey is becoming increasingly difficult every year, so we recommend taking advantage of this opportunity to invest profitably now.