Property prices in Turkey are rising, which is good news for eager real estate investors who have already bought property in Turkey. The Central Bank of Turkey, housing prices increased by 30.6% in the last year, from the first quarter of 2021 to the third quarter of 2021. Real estate specialists estimate that the figure is closer to 13% when inflation is taken into account. Regional variations also exist, with Istanbul presently averaging 6,312 Turkish Lira per square metre and Ankara 2,972 Turkish Lira per square metre.
According to leading property experts the increase was 32% year over year. In addition, for the fifth quarter in a row, Turkey has led all countries as measures to keep interest rates low continue enticing buyers. Inflation accounted for half of the country’s 32% increase in house prices impact.
Global price increases
According to leading experts, numerous countries worldwide are experiencing their most significant property price increases since 2006. Turkey leads the rankings for an annual price rise for the fifth consecutive quarter. However take inflation out of the equation, and real prices are rising at roughly 16% each year. Therefore, let us examine why property prices in Turkey are rising and forecast future house values. It’s not only big city locations such as Istanbul and Ankara that are seeing price hikes. On the south coast leading resorts such as Bodrum, Fethiye, Kalkan, Antalya and Alanya are also seeing a boom in property sales. Foreign buyers are often buying without seeing, they are that desperate to invest in Turkish real estate for sale in 2021.
Why are property prices in Turkey increasing?
With a shift in residential property patterns, Covid had an impact on the Turkish real estate market. Homebuyers are flocking to beach resorts and small towns and villages as they want to escape the significant, congested cities where apartment living is the norm. Furthermore, they wish to buy private villas with a garden and a tiny office for people who work from home.
With no sign of Covid going away, demand will undoubtedly continue to rise, pushing the price of real estate in Turkey even higher. The coastal regions of Antalya, Fethiye, and Bodrum are seeing increased demand from persons looking to acquire private residential homes. The economic sector is another aspect that influences housing prices.
Increased construction costs
Building supplies and expenses are growing, mainly when a developer imports iron rather than purchasing it locally. It’s simple to see how house prices have risen when you combine this with high inflation and a weak Turkish currency. Therefore, what does the future hold?
What can we expect in terms of property prices in Turkey?
Anyone interested in investing in Turkey’s housing market should do it now since all expert predictions indicate that house values will rise rather than fall. This is because the Turkish Lira’s economic difficulties are not projected to be resolved for several years. Another aspect is that, while the number of international buyers in Turkey is declining, they will return once international travel laws are restored, resulting in increased demand.
Since Turkey’s housing market exploded at the turn of the century, it’s been an excellent mid-to-long-term investment, and homeowners already see the benefits of their investment. They will continue to do so in the foreseeable future.
So, where is the cheapest place to buy a Turkish property?
When looking at the Turkish housing market, it’s also helpful to look at regional trends. Some areas in Turkey are noted for their high-end residences that dominate the rental market. Others, on the other hand, are noted for their affordability.