In 2022-2023 in Turkey was recorded a rapid increase in real estate prices. Some experts in their forecasts for the current year noted a decrease in prices due to a decrease in increased demand. However, the Republic of Turkey continues to maintain its leading position in the world ranking for housing price growth. We have studied all the current analytics to find out the predicted value of real estate in Turkey in 2024.Results for 2023
According to statistics, the Republic of Turkey ranks first in real estate price growth in many world rankings. For example, in the Global Property Guide portal ranking, Turkey ranked first with a 41.70% increase in housing prices. The second position is occupied by North Macedonia with an indicator of 18.32%, and the third position is occupied by the UAE with an indicator of 14.56%. As can be seen, the other countries are significantly behind in this indicator.
Analyzing the domestic market, we can see that the cost of real estate in Turkey has increased most strongly in the major cities: Ankara, Istanbul and Izmir. It is in these large cities, the average price of housing exceeded the threshold of the previous year and reached 3 million TL ($106.8 thousand).Turkish real estate market
At the end of 2023, there is a decline in residential real estate sales. It would be logical to imagine that the fall in demand will entail a decline in prices. But this forecast did not come true.
The size of the real estate market in Turkey in 2023 almost reached $90 billion. By the end of 2028, this figure should reach $150 billion, with an average growth rate of 11.16%. This forecast was presented by the Istanbul Builders Association (İNDER).
Buying real estate in Turkey attracts many investors, as this country
has excellent transportation, favorable geographical location, rich tourist resources and developed infrastructure. Istanbul, the crossroads of Europe and Asia, has become a real 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, the construction of large-scale projects has shifted to the periphery. Mass housing construction is developing rapidly. Special attention is paid to providing housing for families with low social income. Particularly in demand are seismic-resistant residential areas. Top 5 cities to buy real estate in Turkey
According to analytical reports, the following cities are in the highest demand for buying real estate in Turkey:
- Istanbul - 416 thousand transactions;
- Ankara - e214 thousand transactions;
- Izmir - 170 thousand transactions;
- Antalya - 132 thousand transactions;
- Bursa - 132 thousand transactions.
In addition, the rapid growth of real estate sales is observed in Alanya, and is 20%. Such a high indicator was achieved due to the rapid development and high investment potential of the city.
The price of real estate in Turkey 2024: expert forecasts
According to experts, the trend of rapid growth in real estate prices in Turkey will continue. Most likely, in the middle of next year to buy housing in Turkey at prices in 2023 will be almost impossible. This will be overblown by such factors:
Is it worth buying real estate in Turkey?
- Increase in the cost of construction materials;
- Deficit of land for construction;
- Rapid development of major cities of the country and increase of their investment attractiveness;
- High demand and insufficient supply in the real estate rental market;
- Numerous large-scale construction projects in Turkey.
It is now investing in real estate in Turkey is more profitable opportunity than ever. Firstly, this is due to the fact that in the next few years will continue the trend of further price growth. Perhaps, the appreciation will have an exceptionally methodical nature. But still, the optimal conditions for investing have developed at this very moment. This is due to a list of the following factors:
- Favorable money exchange. The national currency of the Turkish Republic continues to fall for many years. No matter how it harms the economy of the country, this situation is favorable for foreign investors who keep their funds in dollars or euros. Therefore, the sagging lira guarantees financial benefits despite the rapid rise in housing prices.
- Rapid growth of real estate prices. In major tourist cities, there are hardly any vacant land plots left for construction. Accordingly, land prices will increase. Ankara is the province with the most rapid growth of land prices, the indicator has increased by 92%. The second place is occupied by Antalya with an indicator of 80%, and the third place is occupied by Bursa and Izmir with 74%.
- Investment ratio. Investing in housing within Turkey is guaranteed to bring profits to foreign investors. Next year the amount of investment in the real estate market will reach $1 billion. Resale or rental of real estate will bring substantial profits in the long and medium term.
- Modern construction technologies. In the real estate market in Turkey are available as budget apartments, and options for the premium segment. According to the plans of the state authorities for the next years, the government will continue to update the old and build new objects of urban infrastructure, improve the quality of roads. Thanks to this, every investor will be able to choose the best in cost and characteristics of the residential object.
- Obtaining passive income. Investors can rent out their property for a long period of time or cooperate with real estate companies to ensure guaranteed rent.
- Obtaining a residence permit quickly. Owners of real estate in Turkey can easily obtain a tourist residence permit or ikamet under TAPU. Investors who have invested in housing more than $400 thousand, have the opportunity to issue a "golden" passport under a simplified scheme. In addition, investors can take advantage of many incentives from government agencies: discounts on taxes, duties and more.
- Reasonable prices. European and US countries offer much higher real estate prices and taxation rates compared to the cost of housing in Turkey.
- Comfortable living conditions. Turkish citizens have full access to all comfortable living conditions: pleasant climate, scenic views, quality food, relatively low prices for necessities, favorable atmosphere and attractive investment climate.
To summarize, we can say that the cost of real estate in Turkey continues to rise. Many factors contribute to this: rising land prices, attractive investment climate, the opportunity to obtain a residence permit and much more. Investing in Turkish housing is a profitable investment tool. Buying housing in Turkey is becoming more and more difficult every year, so we recommend you to take advantage of the opportunity to profitably invest your money now.