The capital of the Republic of Turkey and its surroundings are becoming an increasingly popular destination for the purchase of residential real estate. As for Turkish buyers, they have long paid tribute to this metropolis. Ankara has been consistently in the top three in terms of real estate transactions for many years. But this year it was also noticed by those who had previously considered the coastal provinces; it happened after the winter earthquake. Those who want to be safe for possible aftershocks have decided to either move completely or buy a backup apartment in Ankara. Some head offices of large companies and international representative offices have also moved here from Istanbul, for the same reason.
As a result, the free fund of rental real estate has significantly decreased here. This is for those who want to make money on renting out purchased apartments in Turkey on hand.
So, in this article we will tell you in detail how things have been with residential real estate prices in recent years, and especially since the beginning of 2023.
Content:
- Dynamics over the last 3 years
- Leaders and anti-leaders (districts)
- Sales statistics
- Rent
- What apartments can be rented in Ankara for 5,000 TL
Dynamics over the last 3 years
From January 2019 to January 2020, price volatility in relation to a square meter of housing in the Turkish capital was not strong: the cost of square meters fluctuated back and forth in the range from 1,895 to 1,956 Turkish lira (TL). In the general scale of prices, 60 TL cannot even be taken into account.
However, then the situation began to change. From February to September, the average price rose from 1,925 TL to 2,275 TL per 1 m2. This is +350 TL in just seven months compared to 60 TL for the entire previous year.
Let’s consider at the end of the year:
- September 2020 – 2,275 TL;
- October 2020 – 2,409 TL;
- November 2020 – 2,483 TL;
- December 2020 – 2,488 TL.
That is the price per square meters for the year has risen from less than 2,000 to almost 2,500 TL. This is +25% only for 2020.
Since 2021, prices have started to rise even more rapidly. Here are some figures:
- January 2021 – 2,444 TL;
- February 2021 – 2,430 TL;
- March 2021 – 2,476 TL;
- April 2021 – 2,591 TL;
- May 2021 – 2,676 TL;
- June 2021 – 2,729 TL;
- July 2021 – 2,739 TL;
- August 2021 – 2,794 TL;
- September 2021 – 2,895 TL;
- October 2021 – 3,058 TL;
- November 2021 – 3,385 TL;
- December 2021 – 3,917 TL.
As you can see, apart from the occasional (and minimal) subsidence of a few lira in February, the average price per square meters rose monthly from 50 to more than 300 TL.
What was the situation in 2022 and early 2023?
- January 2022 – 4,381 TL.
- February 2022 – 4,716 TL.
- March 2022 – 5,078 TL.
- April 2022 – 5,730 TL.
- May 2022 – 6,412 TL.
- June 2022 – 6,942 TL.
- July 2022 – 7,389 TL.
- August 2022 – 7,914 TL.
- September 2022 – 8,343 TL.
- October 2022 – 8,682 TL.
- November 2022 – 9,066 TL.
- December 2022 – 9,726 TL.
- January 2023 – 10,641 TL.
- February 2023 – 11,622 TL.
- March 2023 – 12,664 TL.
- Finally, the most recent data for April 2023 is 13,910 TL.
It is clear that inflation played a significant role in such a rapid rise in price – up to 1,000 TL per month. But in terms of currency, the cost of real estate also grew.
This was confirmed by Endeksa, which uses big data and artificial intelligence in its work.
How has real estatw become more expensive during the mentioned period:
| Changes | January 2019 – April 2023 | 1 year | 2 years |
|---|---|---|---|
| Ankara | 611,15% | 142,76% | 436,86% |
Here are the figures for the change in the exchange rate against the Turkish lira:
| Exchange rate | January 2019 – April 2023 | 1 year | 2 years | At the time of publication of the analytical review (rate: 1 CU = in Turkish lira (TL)) |
|---|---|---|---|---|
| USD/TRY | 262,68% | 31,49% | 134,46% | 19,4281 |
| EUR/TRY | 244,99% | 36,61% | 113,55% | 21,3157 |
| GBP/TRY | 252,43% | 30,70% | 111,21% | 24,2043 |
- Thus, in Ankara (let's repeat: the figures are given not only for the capital, but also for the entire region), according to data for April 2023, prices for the past 12 months for real estatw for sale have risen by 142.76%.
- The average cost of one residential residence (taking into account typical basic characteristics) was 1.8 million TL.
- The average area of residential real estate for sale is 130 m2.
- The average price per square meter of real estate in April 2023 was equal to 13,910 TL. The average payback period of residential real estate in the province is 13 years.
Leaders and anti-leaders (districts)
In April 2023, real estate prices in Ankara mainly increased in the districts of Kalecik, Hayman, Ayash, Chubuk and Kyzylkahamam.
Prices decreased the most in the districts of Beipazary, Chamlydere, Yenimahalle, Pursaklar and Etymesgut.
As for the payback period of investments, according to data for April 2023, the fastest payback is in Balla, Chamlydere, Haimana, Kalechik and Mamak.
There are districts with the longest average period of return on invested funds: Ayash, Kyzylkakhamam, Nallikhan, Gelbashi and Shereflikochisar.
Sales statistics
TÜIK has published data on housing sales for March (for April, data will be officially presented in the second half of May 2023).
The number of real estate transactions in Ankara in March amounted to 12,023; this is 5% lower than in March 2022, when the figure of 12,609 transactions was recorded.
Analysts explain this by the fact that some of the potential buyers are cautious. However, there is no doubt that after the earthquake in Kahramanmarash. The stock of available rental apartments in the province has sharply decreased. Since February, almost 50% of rented residences have bought in Ankara in about a month. The prices of apartments and houses that have not yet been commissioned have grown astronomically.
The high demand for rental real estate in Ankara has caused fluctuations in prices for lots for sale, so most owners of local residential real estate are now resorting to artificial price increases in order to gain more (it partly explains the slight decline in sales for March).
"In such volatile markets, where there is a "bubble" of prices, deferred demand has grown and a mass of undecided buyers has formed," experts’ comment, recommending that when buying, contact professional consultants who will orient in terms of whether the value of a particular lot declared by the seller is justified.
Here is how many homes were sold in March in Ankara province by district (data are given in units; districts are presented in alphabetical order):
- Akyurt – 151;
- Altyndag – 782;
- Beipazars – 55;
- Gelbashi – 678;
- Yenimahalle – 1,195;
- Kahramankazan – 118;
- Kechioren – 1,751;
- Kyzylhamam – 84;
- Mamak – 1516;
- Polatly – 279;
- Pursaklar – 294;
- Sinjan – 1,367;
- Hyman – 25;
- Chankaya – 2,007;
- Chub – 236;
- Shereflikochkhisar – 69;
- Elmadag – 60;
- Etymesgut – 1,306.
As you can see, the clear winners are one of the central districts of the capital – Chankaya, another metropolitan district Mamak; as well as Sinjan, Kechioren and Etymesgut. Here are the "five winners" for you.
The buyers were least interested in real estate in Beipazary, Haimana, Shereflikochkhisar and Elmadag.
So, there is no need to be afraid of the fact that the newly purchased property in Ankara and its immediate surroundings will be idle and will not find its tenant.
Rent
What are the current prices for rental housing in Ankara?
The average cost of renting a house was fixed in March 2023 at the level of about 10,199 TL.
For 5,000 TL, you can rent an apartment of 208 m2 in Nallikhan, 161 m2 in Akyurt, 132 m2 in Chubuk, 132 m2 in Sindjan, 122 m2 in Altyndag or Pursaklar, 192 m2 – in Polatly.
Analysts also clarified that Chubuk is "growing" in terms of rental rates the fastest. The most expensive area in terms of renting real estate is Chankaya.
In general, according to data for March 2023, the increase in rental prices in the capital of Turkey amounted to +250% in 12 months.
In the table below, you can see what area and where exactly apartments can be rented in Ankara and the surrounding area for the amount of 5,000 TL per month.
What apartments can be rented in Ankara for 5,000 TL
| Region | March 2023, average rent per 1 m2 (TL) | The number of squares meters available for rent for 5,000 TL (m2) |
|---|---|---|
| Chunky | 92 | 54 |
| Gelbashi | 84 | 60 |
| Etymesgut | 71 | 70 |
| Yenimahalle | 68 | 74 |
| Chamlydere | 56 | 89 |
| The ball | 50 | 100 |
| Kechioren | 48 | 104 |
| Hyman | 46 | 109 |
| Mamak | 42 | 119 |
| Altyndag | 41 | 122 |
| Pursaclar | 41 | 122 |
| Shereflikochhisar | 40 | 125 |
| Chub | 38 | 132 |
| Sinjan | 38 | 132 |
| Beypazars | 33 | 152 |
| Kahraman kazan | 33 | 152 |
| Akyurt | 31 | 161 |
| Kyzyldzhakhamam | 27 | 185 |
| Polatli | 26 | 192 |
| Elmadag | 25 | 200 |
| Nalikhan | 24 | 208 |
| Kalechik | 23 | 217 |
| Ayas | 12 | 417 |
Taking into account the fact that Turks do not consider real estate of less than 50 m2 acceptable for living, you can roughly orient yourself on possible rental income for housing purchased in a particular area. If you are puzzled by a short-term lease, turning to specialists for help in renting out housing, then the profit from investing in real estate in Turkey will be even higher.