A thorough report on the volume and the qualitative characteristics of transactions for the third quarter of this year was released by Turk Estate, with the secondary housing market receiving special attention. Real estate that has not been bought directly from the developer is known as "secondary housing" and is highly popular in Turkey. Recently, there is more of a refocusing on it by overseas buyers.
The Real Estate Consultants Association (TÜGEM) and the analytical portal collaborated to create the "Second-Hand Market Report" for the period of July to September 2022.
The numbers received show that 227,128 units changed hands in Turkey's secondary real estate market during the third quarter of 2022. A total of 330,795 units were sold during this period in both sectors (referred to as "primary and secondary"). In addition, the "secondary" segment's sales volume declined by 22% in the first quarter of 2022 and by 1 8% inthe same period in 2021 (April - Jun Turkey's annual rise in real estate prices key reached 202% at the end of the third quarter. Additionally, 69% of all residential real estate transactions involved the sale of second-hand properties, over two-thirds of the total volume.
Content:
| Transactions | The third quarter of 2022: the number of lots sold | Changes in the indicator to the previous quarter (%) | Changes in the indicator to the same quarter of the previous year (%) |
|---|---|---|---|
| Housing real estate in total | 330,795 | –19% | –17% |
| "Secondary" housing | 227,218 | –22% | –18% |
| Transactions involving home loans | 58,284 | –43% | –25% |
| Transactions conducted with overseas nationals | 14,261 | –32% | –16% |
By the start of the fourth quarter, the average sale price per square metre for housing in Turkey was 11,972 Turkish liras (TL), with a 19-year average return on investment. The typical "marketing period," or time frame needed to sell a listed for sale unit is 61 days.
If we simply summarise the general dynamics of the last 12 months in the most sought-after section, the "second-hand" or secondary housing would have prevailed in demand by the end of 2021.
The "secondary real estate" had a particularly great start to 2022. In April, sales in this segment climbed by 45.0% compared to the results of the same month in 2021, assuming that January through March had generally positive indicators. A total of 96,637 units, or 72.6% of the total number of transactions, were sold on the secondary market.
In January-April, the number of sales in the resale segment increased by 29.3% compared to the same period in 2021. During this period, 322,263 housing units changed hands; read all the details here.
In the second quarter of 2022, the secondary housing segment of, "added" 30% to the results of the same period (April - June 2021), in regard to transactions.
The following can be seen when comparing the quarterly sales volume for the previous two years (including both primary and secondary dwellings):
- The first quarter of 2020 – 341,038 lots.
- The second quarter of 2020 – 283,731.
- The third quarter of 2020 – 536,509.
- The fourth quarter of 2020 – 338,038.
- The first quarter of 2021 – 263,050.
- The second quarter of 2021 – 289,760;
- The third quarter of 2021 – 396,328.
- The fourth quarter of 2021 – 542,718.
- The first quarter of 2022 – 320,063.
- The second quarter of 2022 – 406,335.
- The third quarter of 2022 – 330,795.
The secondary segment in the third quarter of 2022 performed significantly better, evidenced by a decrease of 25% in the same quarter in the number of transactions using "leverage" and 43% in the second quarter of 2021.
This information is crucial for readers of Turk Estate: in the reviewed period, the number of residences sold to foreigners fell by 32% in the very prosperous second quarter of 2022 and by 16% in the same period of the previous year. In total, 14,261 units were purchased by foreign buyers between July and September. For the entire quarter, the Russians held first place over the previous leaders, the citizens of Iran and Iraq.
Istanbul has the largest "stock" of the top 50 provinces with the highest transaction volumes, with 349,135 units available for purchase. In terms of "selection", Ankara (with 177,849 units) and Izmir (with 94,528 units) are in second position.
By the end of the third quarter, Antalya, Mersin, and Istanbul were the provinces with the highest yearly growth in value in terms of key cities for real estate sales. The average selling price per square metre of housing in Antalya is 17,123 TL, and the average price per home is 2,054,760 TL. In just a year, the city's housing prices have risen by 244%.
With 243%, 10,923 TL per "square metre," and 1,583,835 TL on average per dwelling, Mersin is only 1% behind. In Istanbul, the average selling price per square metre of housing is 20,208 TL, and the average selling price per housing unit is 2,424,960 TL. The rise in the value of home sales prices is 241% (also somewhat lower).
The top three provinces compete against one another. The average cost of a "square metre" in the Republic of Ankara's capital is 9,047 TL (+212% over the previous year). A bit lower down the list of leaders is Izmir, where the average selling price for one square metre is 15,362 TL for the past 12 months (+190%).
Mugla, Istanbul, and Antalya were the provinces in Turkey with the highest sales prices per square metre of residential real estate.
Görkem Ogyut, Founding Partner and CEO of Endeksa, shared his opinion on the statistics received: "The numbers show a slowdown in sales in the third quarter of the year for both the housing market overall and the resale category in particular." The procedure of regulating mortgage loans, a lack of supply on the market, and excessive housing costs are the causes of this. Endeksa claims that the rate of increase in property prices has eased. "However, I anticipate that market conditions will further improve and yearly sales will rise in the fourth and final quarter of the year, which is often marked by considerable activity in the real estate industry."
For his part, Hakan Akdogan, Head of the Association of Real Estate Consultants (TÜGEM), provided the following explanation: "With 69% of all transactions being secondary home sales, this percentage is still very high. However, because there was less financing available, sales of residential real estate on credit dropped by 43% from the previous quarter (this refers to the opportunity for the average civilian to obtain a loan for the necessary amount at a reasonable percentage. – Editor's note). The housing market is considerably constrained by this situation. Having said that, I think the monthly fall in sales will continue even if we don't anticipate any big price reductions."
Top 50 provinces with the highest transaction volume
| Province | Number of transactions in Q3 2022 | Share in total sales (%) | Average price per 1 sq. m. (TL) | Average price per housing unit (TL) | Return on investment (in years) | Annual change in price (%) | Average marketing period | Unis available for sale |
|---|---|---|---|---|---|---|---|---|
| Istanbul | 51,924 | 16 | 20,208 | 2,424,960 | 19 | 241 | 61 | 349,135 |
| Ankara | 25,965 | 8 | 9,047 | 1,176,110 | 17 | 212 | 60 | 177,849 |
| Izmir | 17,601 | 5 | 15,362 | 1,997,060 | 20 | 190 | 61 | 94,528 |
| Antalya | 16,827 | 5 | 17,123 | 2,054,760 | 19 | 244 | 60 | 85,143 |
| Bursa | 12,029 | 4 | 10,625 | 1,466,250 | 27 | 2206 | 61 | 37,585 |
| Gaziantep | 9,268 | 3 | 9,199 | 1,435,044 | 21 | 147 | 59 | 28,736 |
| Mersin | 8,664 | 3 | 10,923 | 1,583,835 | 27 | 243 | 67 | 6,401 |
| Konya | 8,188 | 2 | 7,863 | 1,258,060 | 20 | 185 | 60 | 21,323 |
| Kocaeli | 8,042 | 2 | 10,499 | 1,385,868 | 21 | 232 | 61 | 31,906 |
| Kayseri | 7,921 | 2 | 6,529 | 1,077,285 | 23 | 162 | 60 | 20,411 |
| Balikesir | 7,667 | 2 | 13,360 | 1,670,000 | 35 | 181 | 62 | 52,418 |
| Aydin | 7,555 | 2 | 16,743 | 2,344,020 | 32 | 187 | 65 | 52,290 |
| Tekirdag | 7,553 | 2 | 9,028 | 1,254,892 | 19 | 225 | 61 | 37,373 |
| Adana | 6,243 | 2 | 9,765 | 1,562,400 | 26 | 189 | 53 | 36,089 |
| Samsun | 5,707 | 2 | 9,552 | 1,308,624 | 23 | 188 | 61 | 21,649 |
| Sanliurfa | 5,672 | 2 | 7,036 | 1,196,120 | 23 | 181 | 50 | 11,011 |
| Sakarya | 5,527 | 2 | 9,718 | 1,205,032 | 21 | 195 | 61 | 24,138 |
| Eskisehir | 5,467 | 2 | 8,864 | 1,108,000 | 19 | 165 | 61 | 19,048 |
| Hatay | 5,402 | 2 | 6,941 | 1,041,150 | 24 | 174 | 62 | 11,881 |
| Manisa | 5,390 | 2 | 8,504 | 1,063,000 | 22 | 157 | 60 | 21,238 |
| Mugla | 4,574 | 1 | 28,206 | 3,666,780 | 29 | 154 | 68 | 30,224 |
| Kahramanmarash | 4,173 | 1 | 7,199 | 1,151,840 | 25 | 150 | 60 | 8,974 |
| Diyarbakir | 4,129 | 1 | 8,301 | 1,328,160 | 24 | 176 | 53 | 10,506 |
| Denizli | 4,124 | 1 | 9,367 | 1,255,178 | 21 | 170 | 60 | 20,966 |
| Elazig | 3,558 | 1 | 5,217 | 860,805 | 42 | 116 | 61 | 4,777 |
| Yalova | 3,493 | 1 | 11,552 | 1,501,800 | 27 | 201 | 63 | 6,937 |
| Malatya | 3,296 | 1 | 6,641 | 1,128,970 | 25 | 219 | 62 | 7,188 |
| Canakkale | 2,800 | 1 | 14,168 | 1,700,160 | 24 | 226 | 61 | 9,219 |
| Trabzon | 2,790 | 2 | 9,120 | 1,504,800 | 27 | 201 | 63 | 6,937 |
| Afyonkarahisar | 2,593 | 1 | 8,138 | 1,057,940 | 21 | 191 | 62 | 3,554 |
| Ordu | 2,442 | 1 | 8,613 | 1,188,594 | 26 | 184 | 61 | 4,890 |
| Mardin | 2,407 | 1 | 6,317 | 1,105,475 | 27 | 184 | 61 | 2,781 |
| Erzurum | 2,321 | 1 | 5,129 | 846,285 | 21 | 161 | 60 | 6,008 |
| Sivas | 2,291 | 1 | 6,868 | 995,860 | 25 | 144 | 63 | 4,416 |
| Corum | 2,280 | 1 | 6,484 | 875,340 | 27 | 144 | 63 | 4,416 |
| Duzce | 2,169 | 1 | 8,211 | 10,926,375 | 21 | 200 | 62 | 4,504 |
| Giresun | 2,077 | 1 | 7,241 | 1,049,945 | 28 | 167 | 63 | 2,724 |
| Van | 2,036 | 1 | 7,589 | 1,130,761 | 24 | 183 | 60 | 4,027 |
| Aksaray | 1,979 | 1 | 7,832 | 1,174,800 | 26 | 175 | 61 | 2,712 |
| Kirikkale | 1,978 | 1 | 5,105 | 689,175 | 23 | 152 | 61 | 3,622 |
| Isparta | 1,972 | 1 | 9,867 | 1,272,843 | 21 | 165 | 61 | 2,807 |
| Edirne | 1,934 | 1 | 10,353 | 1,190,595 | 20 | 181 | 63 | 4,321 |
| Yozgat | 1,912 | 1 | 6,681 | 935,340 | 24 | 165 | 64 | 2,321 |
| Adiyaman | 1,908 | 1 | 7,329 | 1,135,995 | 27 | 159 | 60 | 4,272 |
| Kutahya | 1,901 | 1 | 6,756 | 878,280 | 18 | 170 | 61 | 3,788 |
| Batman | 1,788 | 1 | 7,017 | 1,122,720 | 26 | 134 | 60 | 2,545 |
| Zonguldak | 1,754 | 1 | 8,946 | 1,162,980 | 25 | 186 | 66 | 2,960 |
| Bolu | 1,735 | 1 | 8,207 | 1,083,324 | 22 | 162 | 62 | 2,437 |
| Osmaniye | 1,713 | 1 | 6,186 | 958,839 | 25 | 167 | 61 | 3,590 |
| Kirklareli | 1,691 | 1 | 8,166 | 979,920 | 21 | 189 | 62 | 4,010 |
A few numbers that deserve special attention:
- the fastest housing sales in the third quarter occurred in Adana, Sanliurfa, and Diyarbakir (average of 50-53 days);
- residential real estate prices rose the least in Elazig (+116%), Batman (+134%), Corum (+144%), Gaziantep (+147%), and Kahramanmarash (+150%);
- the price per square metre has exceeded 10,000 TL in the following provinces: Edirne, Canakkale, Yalova, Mugla, Aydin, Balikesir, Kocaeli, Mersin, Bursa, Antalya, Izmir, and Istanbul;
- in July-September 2022, the minimum price per square metre was recorded in Kirikkale (5,105 TL), Erzurum (5,129 TL), and Elazig (5,127 TL);
- within a million TL with the purchase of an "average" home, you can keep within the following provinces: Elazig, Erzurum, Sivas, Corum, Kirikkale, Yozgat, Kutahya, Osmaniye, and Kirklareli;
- the lowest average price per housing unit is in Erzurum: 846,285 TL;
- as of the end of September, returns on real estate investments pay off quickly in Ankara (17 years) and Kutahya (18 years), and the longest in Giresun (28 years), Mugla (29 years), Aydin (32 years), Balikessir (35 years), and Elazyge (42 years).