Housing in Turkey continues to rise in price

Analysts have summed up the results of Q1 2023. Despite recent statements, which the rise in housing prices slowed markedly, the statistics for January–March indicate the opposite.

Real estate in Turkey continues to rise in price relatively rapidly.

The volume of housing sales in the Republic of Turkey rose by 32% in March compared to February but declined by 21% compared to March 2022. Note that in March, 105,476 housing units were sold. According to Endeksa, the annual increase in the value of property for sale in Turkey as of March was 154%. Endeksa is the research and information portal; it considers the complete data processed by artificial intelligence.

Content:

• Key Figures
• Leading provinces
• Other megacities
• Foreign investors
• Major findings

Key Figures

Here are the primary indicators that deserve special attention:

• Kırklareli, Antalya, and Kocaeli were the provinces with the highest rate of price increases
• The average price per m² for sale in Turkey at the end of March 2023 was TL 17,573 (Turkish Liras)
• The average price per lot (unit of residential real estate) in the country is TL 2,284,490
• The average payback period is 20 years.

Leading provinces

Istanbul remains the unchanged leader in sales. In March 2023, it accounted for 17% of the total transactions in the country — 18,166 lots (apartments or houses) were sold here. The average price of homes for sale in Turkey's most significant metropolis was TL 3,186,472. It is about 40% higher than the average for Turkey. Over the past 12 months, Istanbul's residential real estate rose by 144%, with the price per m² reaching TL 27,004.

Ankara follows Istanbul, with 12,023 sales and an 11.4% share. Incidentally, housing in the Turkish capital has increased in price by 154%, which is also a general figure for the country. The average selling price per m² is now TL 13,018, and the cost of a residence is TL 1,692,340.

Antalya rounds out the top three, with 6,120 sales and a 5.8% share. The province's housing rose by 164%, and the average cost per m² was 24,747 TL. The average unit price is TL 2,969,640.

Antalya, Kocaeli, and Kırklareli are in the top 3 provinces with the fastest price growth. The latter is in first place; for 12 months, the cost of local housing increased by 208%. Yet residential real estate here is not too expensive: TL 13,556 per m² and TL 1,626,720 for a single lot.

Kocaeli's dynamics are the same as in Antalya: +164% over the year. However, the prices differ: one m² of residential property costs TL 14,800, and the average price per residence has reached TL 1,924,000.

Other megacities

In addition to Istanbul, Ankara, and Antalya, Izmir and Bursa are other Turkish megacities worth mentioning. Although they are far from the leaders in terms of both sales and transaction volume in March, these cities (and provinces) are significant for the country.

The Turkish Institute (TUİK) published statistics on home sales in Izmir. According to the data, most houses were sold in Buk and the least in Seferihisar. The volume of transactions in Izmir in March 2023 decreased by 27.2% compared to March 2022: 5,858 versus 8,051 last year.

The number of transactions in the segment of new buildings decreased by 24.1% compared to the same month last year, amounting to 1,688 units. The share of contracts for the sale of primary housing in the total number was 28.8% in Izmir.

71.2% accounted for secondary real estate (4,170 residential lots). In this segment, the drop was 28.4% compared to last year.

One thousand four hundred fifty-eight lots sold accounted for mortgage transactions, 23.1% less than in March 2022.

If we consider the statistics of districts, then most transactions took place in Bucha. Six hundred thirty-five residential units (houses or apartments) were sold there. Bucha is followed by Menemen with 566 sales and Torbaly with 465 sold objects. Next, the number of transactions is distributed as follows (in descending order):

• Karsiyaka – 456 sales;
• Chigli – 420 sales;
• Karabaglar – 391 sales;
• Bornova – 388 sales;
• Konak – 332 sales;
• Bayraklı – 201 sales;
• Seferihisar – 194 sales.

In March 2023, 3,701 residential lots were sold in Bursa. The share of this town in the total volume of transactions in the country was 3.5%.

A number of 1,013 lots were sold with a mortgage loan, 16.5% less than in March 2022. During this month, 2,688 objects were sold without mortgage loans.

Transactions in new buildings this month accounted for 1,312 residences, and 2,389 secondary housing lots changed hands.

Foreign investors

As a portal focused on selecting and selling houses and apartments in Turkey to international buyers, Turk Estate paid attention to the statistics on deals concluded by foreign investors in March.

So, the sales of homes to citizens of other countries in March 2023 decreased by 39% compared to March 2022, down to 3,415 units. But that's a 2% increase over February 2023 (compared to 3,350 units).

Transactions with foreigners accounted for 3% of the monthly national real estate sales.

Antalya took first place by the number of transactions (1,324 lots in March), Istanbul was second (1,090 lots), and Mersin was third (240 lots). As for Izmir, the volume of transactions with citizens of other states has decreased by 30.3 % compared to the same month of the previous year, and has made only 92 agreements. Bursa is just nine units behind. It sold 83 residences to foreigners.

Görkem Ogüt, co-founder and CEO of Endeksa.com, commented on the month and the first quarter of 2023. He explained that the number of deals declined in February due to the earthquake and increased again in spring. But no wonder it is still lower than in March 2022. After all, many potential buyers are waiting and keeping an eye on both high home prices and the general situation in the region.

We present a table of current data at the end of March 2023. You can use it as a guide when choosing a province to buy a Turkish home if you plan the deal for the near future.

The table represents the list of the most demanded locations.

Major findings

• Kocaeli, Antalya, and Kırklareli were the 3 fastest-growing provinces in the last year (compared to March 2022);
• They are followed by Ankara, Tekirdag, and Sakarya, with 154% each; Yalova and Ordu are apparently on the same level – 152%;
• The most expensive real estate is still in Mugla (TL 35,378 per m²), Istanbul (TL 27,004), and Antalya (TL 24,747);
• The cheapest housing is in Erzurum, Elazığ, Kayseri, and Şanlıurfa: less than TL 10,000 per 1 m²;
• The most expensive properties in terms of average price per residence are in Istanbul and Aydın: more than TL 3 million. The cheapest housing is in Erzurum (TL 1.1 million), Elazığ (TL 1.3 million), and Kayseri (TL 1.45 million);
• The shortest return on investments in real estate is in Ankara (13 years), and the longest is in Elazığ (40 years).