The average housing price of property in Turkey is currently far less than in Europe. However, rising costs have resulted from two factors that have caused substantial changes in the real estate industry. The first is an increase in the cost of construction materials, particularly those imported from abroad, and an increase in demand for houses in rural rather than urban regions. However, keep in mind that these average costs are for the entire country of Turkey. Drill down to regions to ensure a healthy, prudent investment with plenty of capital appreciation possibilities when investing in Turkish real estate.
Buyers were attracted by rapid development on the European side and massive projects such as the Istanbul Canal project. When inflation is factored out, property prices increase by 4% year over year, bringing the average cost to 6,312 Turkish Lira per square metre.
However, Istanbul is such a vast metropolis that, besides having affordable property, it also has the Bosphorus, which has the most costly properties in Turkey. Some, such as the new homes there, are even the most costly globally, selling for 115 million euros. Head to the outskirts of European areas to find a low-cost house. Many developments sell off-plan, allowing for more significant appreciation potential, and long-term payment arrangements can often be as long as five years with no interest.
In contrast to Istanbul, house prices increased by a startling 21% last year. The current average price per square metre in Turkish Lira is 4,911 lira. The city centre and adjacent beach resorts, on the other hand, are experiencing a new trend. Many Istanbul residents have been trying to get out of the city in recent years, citing traffic congestion as a reason. They still want to see the city, so they travel to Izmir.
Antalya’s city centre
Forforeigners, Antalya is the most popular destination in Turkey for foreigners searching for a vacation house rather than a long-term investment. Antalya is split into five distinct districts. Naturally, the closer a home is to the sea, the higher the price per square metre, yet the district’s average price per square metre is 4000 lira.
Where can I find the lowest price property in Turkey?
If you’re looking at typical house prices with the intention of buying one, you’ll be relieved to learn that many neighbourhoods stand out for their low pricing. Didim is another name for Altinkum, which is located on Turkey’s Aegean coast. Didim remains relatively inexpensive compared to other places in Turkey, despite rising prices due to increased demand last year. The reason for this is the abundance of available resources.
Meanwhile, Trabzon and Bursa were late to modernise their property markets on Turkey’s northern shore, resulting in low pricing. Because of their shared culture and traditions, these two places primarily attract Middle Eastern nationals. Mediterranean Dalaman and Alanya’s Mahmutlar area are two more places to explore for affordable property in Turkey.
Additional purchase costs
Although housing prices are an essential consideration, homebuyers should also consider other costs when setting a budget. Even though the Turkish government does not require the employment of a lawyer, we recommend that every home buyer in Turkey do so. You’ll also need to pay for translators, property taxes, land registry fees, notary fees, DASK insurance, and changing or connecting your utilities. Finally, estimate closing costs at 9% of the property price as a reasonable guideline.
Other things to think about when investing
If buying a house in Turkey is primarily for investment purposes, research and local expertise are required. According to records, property values consistently rise when the provincial government invests significantly in infrastructure and social facilities. Furthermore, given the current status of Turkish real estate, any investment should be considered for the medium to long term, ideally ten years. Finally, look at area rental yields before renting out the home. In Mediterranean Kalkan, where enormous luxury villas are the norm, net profits average 15%.