The price for 1 sq. m of housing in Istanbul in September 2021 was equivalent to 15 grams of gold — a square meter costs 22.4 grams. Economists told the Turkish media about this.
Housing investors are more attantive to alternative investment options — how much housing costs in dollar terms and precious metals. Moreover, gold in Turkey is a popular investment tool sold and bought everywhere in small coins of different denominations.
Analysts clarified that, according to the latest data, the housing price index increased by 2.2% month-on-month and by 58.3% year-on-year (based on the results at the end of winter). Although this is the slowest growth in the last 27 months. Nevertheless, residential real estate is growing in price faster than gold: as already mentioned, 1 sq. m has risen in price from 15 to 22.4 grams of gold or by almost 50%.
At the end of 2021, the average cost of housing in Istanbul was $850 per 1 sq. m, while the average in Turkey was about $570. By May 2023, the price per square meter in Istanbul has increased to $1,800, and the average in Turkey is up to $1,200.
Over the 10-month period from May 2023 to February 2024, prices fell slightly — to $1,475 per square meter in Istanbul and up to $1,200 in Turkey. As for the conversion to gold, the cost of 1 square meter in Turkey in September 2021 was equal to 15 grams of gold in Istanbul and 10 grams — on average in the country. The peak was reached in March 2023 with 28 and 18 grams of gold, respectively.
It is obvious that housing prices will continue to go up (although it is unclear at what pace) — because they have risen to the indicators of Europe and the United States — the dynamics in comparison with another investment instrument — gold — puzzles analysts with its uncertainty.
Due to increased demand and high interest rates, the average payback period for residential real estate in Turkey has been reduced to only 15 years.