Izmir is Turkey’s third-largest metropolis and an important and busy port. Known as the ‘pearl of the Aegean coast’, it boasts elite holiday villages near the city.
The Izmir property market is dynamic, attracting not only local buyers but also investors from abroad. Why? Its mild weather conditions (not as hot in summer as in Antalya province) due to the Mediterranean climate, uniquely beautiful beaches and an abundance of historical sights. Active economic growth, the development of transport systems and urban transformation projects enhance the attractiveness of local facilities and diversify investment opportunities.
Experts believe that 2024 has the potential to become a watershed year for Izmir's property market. In a sense, it already has. During this period, significant changes have been recorded in both the sales and rental sectors. The city has seen a considerable increase in prices and an increase in the number of new projects.
Content:
- Izmir's residential property market this year
- Forecast: 2024 and beyond
- Rental housing market
- What contributes to the popularity of the city
Izmir's residential property market this year
Data from the TUIK (Turkish Statistical Institute) shows that the volume of residential sales in Izmir is showing significant growth compared to previous years. In the first half of 2024 alone, there was a 12% increase in sales compared to the same period in 2023.
The most sought-after neighbourhoods in the city are as follows:
- Karsiyaka: Over 15 thousand housing units sold
- Bornova: Over 13.5 thousand
- Konak (centre): Around 13 thousand
- Buja: About 11 thousand
- Cesme (resort village near the metropolis): Over 9.5 thousand
State and trends of the property market in Izmir
- Price growth: In 2024, the cost of housing here increased by 15%. The demand for luxury property in coastal areas such as Cesme and Urla has played a significant role. The average price per square metre in these areas has already exceeded TL 30,000 (USD 872).
- Urban transformation: The ongoing reconstruction of old buildings and the construction of new projects have a positive impact on residential property prices, particularly in areas like Karsiyaka, Bayraklı and Bornova;
- Interest of foreign investors: While the volume of transactions with foreign buyers of property in Turkey has decreased, in Izmir, sales to foreigners increased by 20% in the first six months alone. Investors from Europe and the Middle East are particularly interested in the province, focusing primarily on the coastal areas.
Forecast: 2024 and beyond
Izmir's property market in 2024 is experiencing significant growth and judging by the observed dynamics, its investment attractiveness is expected to continue increasing. The city has already become one of the most sought-after cities in the country. It’s important to note that, unlike traditional resort areas, Izmir remains ‘active’ throughout the year, attracting tourists from around the world at any time. Additionally, with many universities based in the city, there’s a constant demand for rental housing year-round.
Rental housing market
The rental housing market in Izmir is also very active. The demand for rental apartments in Turkey has particularly increased in areas where universities are concentrated, such as Bornova, Buja and Bayraklı, which are close to business centres. Good, spacious flats in new buildings and stylish premises located in favourable locations are most in demand.
Where it makes sense to invest:
- In areas where urban transformation is planned or already underway, where old buildings are being reconstructed and new ones are being built;
- In luxury development projects in Turkey’s coastal areas like Cesme and Urla;
- Beyond housing, it also makes sense to consider investing in office and commercial space within new business centres, such as the Bayraklı business district. These investments can provide high returns in the long term. It’ll also be profitable to purchase space in shopping malls for rental to shops, as Izmir is one of the shopping capitals.
What contributes to the popularity of the city
Infrastructure projects
Completed and off-plan projects in Turkey also increase the attractiveness of some districts and, at the same time, the prices of adjacent properties. For example, new metro lines are being laid to enhance the value of property near emerging stations and motorway projects alleviate traffic congestion, making it easier to access dormitory districts. The most important development is the completion of the Izmir-Istanbul motorway, which will make travel between the two megacities easier, faster and more comfortable without the need to travel by air.
Ecology and sustainable development
Environmentally friendly technologies in construction, smart home systems and energy and water recycling provide high energy efficiency and savings on utility bills. So, when choosing a project to buy, check its green credentials and the technologies it employs.
The most promising districts for investment
- Bayraklı and Bornova: With its new office centres. Bayraklı is rapidly developing as the ‘new business centre of Izmir’. As of late 2024, numerous office buildings and residential buildings have already been completed, including mixed-use developments such as Bayraklı Towers and Folkart Time, which have attracted many local and foreign investors. Bornova continues to offer attractive housing options for university students and young professionals.
- Cesme and Urla: Holidays and luxury living:
Cesme and Urla attract attention for their luxury premises located in the coastal areas of the province, close to the best beaches. This is particularly true for low-rise beachfront buildings, villa+apartment complexes and detached houses. New marina projects in Çeşme and boutique hotels in Urla further enhance the appeal of these areas.
- Gaziemir and Menderes: Leisure opportunities:
Gaziemir and Menderes are particularly notable for their new mixed-use projects and vast green spaces, making them popular choices for families for living and investment. The Optimum shopping centre and the fairgrounds in Gaziemir drive rapid commercial development in the area. Near Menderes, one can often find particularly spacious premises that are family-friendly and offer a ‘city living in nature’ environment.
Izmir housing market in figures
As per the specialised property platform Endeksa, house prices in Izmir increased by 29.4% year-on-year in September. The average price per square metre increased to TL 35,651 (USD 1,036), while the average cost per 100 square metre unit was TL 3.57 million (USD 104,000).
Moreover, the prices of housing in areas close to the beach and the city centre are now more than double the average. The fastest growth in residential property costs in September was recorded in popular areas such as Güzelbahce, Urla and Cesme.
Based on Endeksa's calculations, the average price of a 100 square metre flat in different districts of the province is as follows, listed in ascending order from the cheapest to the most expensive district:
- Bayındır — TL 1.4 million (USD 40,500)
- Beydag — TL 1.8 million (USD 52,000)
- Kynyk — TL 1.9 million (USD 55,000)
- Odemis — TL 2 million (USD 58,000)
- Tire — TL 2.3 million (USD 67,000)
- Kiraz — TL 2.3 million (USD 67,000)
- Bergama — TL 2.3 million (USD 67,000)
- Torbalı — TL 2.4 million (USD 70,000)
- Karabaglar — TL 2.6 million (USD 76,000)
- Kemalpaşa — TL 2.8 million (USD 81,000)
- Menemen — TL 2.8 million (USD 81,000)
- Buja — TL 2.9 million (USD 84,000)
- Konak — TL 2.9 million (USD 84,000)
- Aliaga — TL 2.9 million (USD84,000)
- Selcuk — TL 3 million (USD 87,000)
- Cigli — TL 3.2 million (USD 87,000)
- Bayraklý — TL 3.2 million (USD 93,000)
- Balcova — TL 3.4 million (USD 99,000)
- Karsiyaka — TL 3.9 million (USD 113,000)
- Gaziemir — TL 4 million (USD 116,000)
- Bornova — TL 4.2 million (USD122,000)
- Focha — TL 4.2 million (USD 122,000)
- Seferihisar — TL 4.3 million (USD125,000)
- Dikili — TL 4.5 million (USD 131,000)
- Menderes — TL 4.7 million (USD 137,000)
- Karaburun — TL 5.2 million (USD 151,000)
- Narlıdere — TL 5.7 million (USD 166,000)
- Güzelbahçe — TL 7.7 million (USD 224,000)
- Urla — TL 7.8 million (USD 227,000)
- Çeşme — TL 7.9 million (USD 230,000)
Property sales statistics
This figure can also be used as a guide when choosing a neighbourhood in which to buy flats or houses in Turkey.
May 2024
First place in terms of sales is Budja with 674 residential premises. Next come Menemen (615), Torbalı (550), Karşıyaka (537), Konak (376), Karabaglar (343), Çigli (340), Bornova (337), Seferihisar (231) and Bayraklı (213).
During this month, citizens of other countries purchased 52 housing units across the whole province of Izmir.
July 2024
Menemen had the most residential property sales this month, with 803 units. Buja is in second place with 795, followed by Karsiyaka (564), Torbalı (531) in fourth place and Konak (376) in fifth place. Karabaglar (367), Bornova (330), Çigli (also 330), Bayraklı (288), and Seferihisar (202) are next in the top ten.
Foreigners bought 29 properties in Izmir in July.
September 2024
Buja was again the favourite last month with 974 lots. Next were Menemen (819), Torbalı (751), Karşıyaka (648), Karabaglar (471), Bornova (463), Konak (422), Çiğli (394), Bayraklı (302) and Aliaga (229).
Foreigners purchased 25 housing units in Izmir this month.