Real Estate Index Report – Turkey 2022
Turkey’s Residential Property Price Index rose by 96.4% in February
According to the latest figures from the housing ministry, Turkey’s residential property prices index increased by 96.4 percent and 110% in real terms in February. The index is based on quality-adjusted variables and measures the changes in dwelling prices. The index includes both the existing and new homes. For example, in Istanbul, the price for a one-bedroom apartment rose by 15.6%, while a three-bedroom apartment saw a 13.4% increase. This price rise is due to a sharp fall in the value of the lira, which dropped by 44% against USD in late 2021. Inflation related to imports has risen dramatically as a result.
Turkey’s economy is in serious trouble despite the recent increase in property prices. In Turkey, the Turkish lira has fallen in the last year and the housing prices are increasing despite the lack of supply. This increase can be attributed to several factors. Turkey’s real-estate prices have been affected by inflation, an imbalance between demand and supply, rising construction costs, and ongoing Russian war in Ukraine.
Home Sales Rose By 11.5% Y-O-Y To 265,098 Units In 2020
Turkey’s foreign nationals have seen their home sales rise by 43.5 percent in 2020. Istanbul was the leader with 26,469 sales. Antalya and Ankara are other major cities that have seen a rise in foreign home sales. The largest foreign group buying 11500 housing units in 2020 was the Iranians. They were followed closely by Russians and Iraqis. Germans bought 2,762 units while others purchased just over 25% of the year ago.
Turkey’s fourth quarter 2018 home sales increased by 21.5% y/o, largely due to strong foreign sales. Real yields have dropped to negative territory after the central bank of Turkey cut rates twice. As a way to protect themselves from rising prices and inflation, locals have been encouraged to invest in real property. High prices have resulted from Turkey’s low supply of homes despite rising prices.
The Housing Stock Ratio is slightly higher than last year
Although the first quarter of 2022 saw a slightly higher ratio of housing stock than last year’s, demand for Turkish real property is expected to continue growing in the future. This is due to both local and international buyers. Demand for the golden visa program, which grants Turkish citizenship by purchasing property, is expected to rise. Additionally, residential property is considered a safe investment. It is important to mention that the Turkish Lira is tied to the U.S. Dollar, so house prices and real property prices are not officially tied to the U.S. dollars.
Turkey’s house prices have increased rapidly since then. According to Knight Frank’s latest figures, the nominal growth rate was actually 110% for the year ending March. Istanbul saw even greater growth.
The Key Factor in Property Prices is Shortage of Supply
Turkey’s property prices are driven by a shortage of supply. The housing supply is not meeting the demand as the population continues its growth. This has led to higher prices for new-build homes. Residents are finding it difficult to find affordable housing. In short supply are construction permits, and builders are faced with rising input costs.
Turkey’s housing market is experiencing a boom. These increases are often due to panic selling and buying. People are leaving their homes to purchase new homes. They are therefore willing to pay more. Inflation rates are also rising, which means that homes are in high demand.
Investment Opportunities In Turkey’s Real Estate Market
Turkey’s real estate market is experiencing a boom. Turkey’s strategic location, rich cultural heritage and geographic diversity make it a great place to invest in real estate. Investors can also enjoy up to 150% returns. With over one million people moving to Turkey each year, the demand for homes is on the rise. Foreign investors are increasingly interested in Turkey’s real estate investments.
It is important to think about your budget when buying property in Turkey. Many Turkish real estate firms will assist prospective buyers in arranging mortgages. The mortgage term is five years and the down payment is typically 30 to 35 percent. A loan may be taken out from your country of origin, but this is not recommended if the interest rate is high. You should look into a Turkish bank for a mortgage in these cases.