Ankara: Real housing prices are lower than advertised — let's buy!

Previously not-so-sought-after Ankara is rapidly becoming more expensive in terms of property prices. At the same time, the cost of services, food and other items here is often lower than in Istanbul or popular resorts. Thanks to this, the capital can be considered a good investment destination despite its distance from the coastline. Nevertheless, many buyers of residential property in Turkey are choosing it.

As per the results of the 'Housing Market Survey for Sale: April 2024' by the Turkish research institute BETAM, analysts specify that the autumn-winter price decline in Ankara was less severe than in other cities. While the average decline in the country was -14.1%,  in Istanbul it was -16.1 % and in Izmir-13.6%, Ankara experienced a decline of only -5.9%.

The average cost per square metre of housing for sale in Istanbul is 38,461 TL (USD 1,193), 20,961 TL (USD 650) in Ankara and 31,818 TL (USD 987) in Izmir. Thus, the capital is also the 'winner'. Additionally, like in Izmir, Ankara's 'market viability' indicator increased in April 2024.

At the same time, the volume of property sales in Ankara in April was still lower than in previous months. Compared to April last year (2023), the reduction in the number of transactions amounted to almost 40%, which is significantly higher than the overall decrease in the country, averaging 11.8%.

This situation is making sellers much more inclined to offer discounts. Indeed, the number of property sale adverts in the capital of the Republic of Turkey has increased significantly this spring. Owners and intermediaries are eager to make sales, so now is the perfect time to buy. After all, buyers now know that the adverts' prices are inflated and can safely ask for a discount. Real Estate analysts commented on the April sales statistics as follows: 'It seems that <in Ankara,> the housing bubble has burst due to the tight monetary policy implemented by the government and the attractiveness of deposits in TL, as well as advertising prices that do not reflect market realities. We observe a 30–40 % difference between the quoted advertisements prices and the actual sale prices.' During this period, characterised as 'the time for genuine buyers and sellers', they believed purchasing property at an affordable price was possible.

The most expensive area in Ankara is Gölbaşı, while one of the most sought-after areas for purchases is the central section of Cankaya (or rather, one of the central sections).

Thus, in April 2024, the highest number of housing sales in the capital occurred in this location, totalling 1,006 residences. It was followed by Kechioren (930 sales) and then Sinjan (755), another central area.

Content:

• Here are more detailed figures for the different locations:
• A few numbers and facts:
• Furthermore:
• Detailed figures by neighbourhood as of the end of April 2024
• Brief conclusions:

Here are more detailed figures for the different locations:

• Akyurt: 79
• Altındağ: 481
• Beypazary: 51
• Elmadag: 34
• Etimesgut: 629
• Gölbaşı: 319
• Güdül: 27
• Kahramankazan: 45
• Kechioren: 930
• Kiziljahamamam: 47
• Mamak: 700
• Polatly: 151
• Pursaklar: 162
• Sinjan: 755
• Yenimahalle: 617
• Chankaya: 1,006
• Chubuk: 150
• Shereflikochhisar: 35

A few numbers and facts:

• The Endeksa analytical portal reported that despite the decline in the number of transactions, housing in the capital saw a slight decrease over the year, with prices fluctuating, but not significantly: the average price fell by 3.67 per cent over 12 months;
• However, the Emlakjet portal specifies that this decrease would have been more significant if Ankara had not experienced a recent recovery of approximately +3% in prices in the last month alone!;
• According to Emlakjet, rental prices surged by 7% from March to April alone;
• The price of a typical, medium-sized residence for sale is USD 85,360;
• As of the end of April 2024, according to Endeksa, the districts in Ankara province experiencing the fastest increase in housing prices are Haymana, Elmadag, Çamlıdere, Polatlı and Kahramankazan;
• The areas that have shown the lowest price growth are Beypazarı, Bala, Kecioren, Sereflikocşhisar and Sincan;
• Areas of the city where housing pays back the fastest: Altındağ, Bala, Çamlıdere, Güdül and Yenimahalle;
• Areas with the longest return on investment periods currently include Ayash, Elmadag, Şereflikoçhisar, Kızılcahamam and Nallıhan.

The Turkish housing portal Hepsiemlak also shared valuable figures.

As per data obtained directly from sellers and buyers and analysed accordingly, in April, the price per square metre of flats for sale in Ankara was 23,093 TL (USD 716). Thus, 100 square metre apartments in Turkey purchased in the province cost, on average, between 1,903,900 (USD 59,000) and 2,821,300 TL (USD 87,500), depending on the number of rooms.

Specifically, by format:

• The average price of a studio (1+0) flat for sale is 1,890,625 TL (USD 58,630)
• The average price of a 1+1 flat is 1,819,499 TL (USD 56,500)
• The average price of a 2+1 flat is 2,346,257 TL (USD 72,800)
• The average price of a 3+1 flat is 2,832,788 TL (USD 88,000)

By neighbourhood, the top three most popular and sought-after areas of the province for buying housing and therefore the most expensive, as of the end of April:

• Cankaya: The cost of one square metre of living space here is 37,505 TL (USD 1,163)
• Gölbaşı: 30,094 TL (USD 933)
• Jenimahalle: 26,795 TL (USD 831)
• Top three most affordable neighbourhoods, in terms of cost per square metre:
• Güdül: 12,299 TL (USD 381)
• Kalecik: 11,395 TL (USD 353)
• Shereflikochhisar: 12,564 TL (USD 390).

The average return period on residential investment in Ankara is only 13.8 years, making it a significant advantage of buying property locally.

Furthermore:

From January 2019 to April 2024, housing prices in Ankara province have risen by an average of 81.49% in USD, with 67.6% of this increase occurring in the last 2 years alone. Analysts predict a further rise of up to 35% within the coming year;

As of the end of April 2024, the average price per square metre is USD 657;

The average size of a flat in Ankara is 130 square metres, as opposed to the 100–110 square metres found in many other provinces;

Average price per housing unit: USD 85,360;

Minimum/maximum price per square metre: USD 422–USD 1,343;

Average time to sell homes for sale in the province: 72 days;

The number of available lots for sale right now is just over 120,000.

Detailed figures by neighbourhood as of the end of April 2024

Brief conclusions:

• The three districts with the most expensive flats, considering the average area, are Gölbaşı, Yenimahalle and Cankaya (all three are highly sought-after);
• The cheapest districts are Güdül and Haymana;      
• Haymana, Güdül and Polatlı have the lowest cost per square metre.

Just a reminder: Buying property worth USD 400,000 qualifies for citizenship under the accelerated procedure for investment. This amount can cover not just one flat, but several property units. The primary condition is acquiring all the property units in a single transaction.

Unlike Istanbul, Antalya and Alanya, fewer areas in Ankara restrict the issuance of residence permits based on TAPU (property ownership rights). After owning property for five years and residing in Turkey, individuals who have invested USD 200,000 can apply for Turkish citizenship as usual.