The Endeksa analytical platform, known for the most accurate and up-to-date statistics, and referred to by most Turkish media, presented data in its detailed report which was published recently.
In June 2022, Endeksa announced the updated prices for residential real estate in Turkey by district, taking into account the figures received in May.
Content:
- Rising real estate prices
- Rising rental prices
- The head of Endeksa comments on the situation and up-to-date trends
Rising real estate prices
According to Endeksa, the annual increase in housing prices in Turkey as of May was over 171% (the national average). The average price per square meter reached 9,363 Turkish lira (TL), and the average price per housing unit was 1.3 million liras (1,264,005 TL). The average period in which housing in Turkey is paid off (since the end of May) is 17 years.
The indicators have changed dramatically over the past two months: Turk Estate reported that in March, the average cost of housing in the Republic of Turkey was 998,325 Turkish lira (TL), and the average price per square meter was 7,395 TL, that is, housing has risen by almost 30% in the cost per meter and average prices per residence.
The term of return on investments has been reduced from 19 years to 17. Rentals across Turkey have increased by 152% over the past year and by 233% over the past four years. These are official and averaged data. In some provinces, cities, districts, and the most popular quarters, prices are higher.
Endeksa also clarified this and emphasized that Antalya is the province with the highest increase in prices for the sale and rental of housing over the past 12 months.
Antalya, Istanbul, and Mersin are the provinces with the highest annual increase in the cost of housing per square meter. With Istanbul, the reason for its popularity is clear, as it is the largest metropolis, financial, tourist, and economic center with a powerful air hub, where apartments are quickly sold out because they will always be in demand either for sale or for rent.
Mersin, with the off-plan Akkuyu nuclear power plant (the first in Turkey), is gradually becoming another important economic center of the country.
Russians and Ukrainians are going to Antalya, which used to be a favorite destination for "long-term" tourists, further provoking an increase in prices.
The cost of housing in Antalya has risen by 210% over the past 12 months. The average selling price per square meter of housing is 13,351 TL, and the average cost of a housing unit is 1,735,500 TL, which is almost 40% more than the "national average".
Moreover, Antalya even bypassed Istanbul by 1%. The annual cost increase in the largest Turkish metropolis was 209%. The average selling price per square meter here, however, is more expensive than in Antalya, at 15,775 TL, and the average price per residence is slightly higher, at 1,892,040 TL. The fact that there is a minimal gap between the last two indicators shows that there is a lot of promising housing in Antalya province.
As for Mersin, the annual increase in value here is not much lower than the same indicator in Istanbul and Antalya, with 194%. The average selling price per square meter of housing is 7,907 TL, and the average price per housing unit in the province is 1,186,050 TL.
Mersin can no longer be called "inexpensive", which it was a few years ago. This place is in demand, it is rapidly developing, including infrastructure. It will have a metro and will even have its own airport.
The increase in indicators for 30 provinces, as of the end of May 2022
(The TOP 30 at the maximum price per 1 sq. m of residential property for sale).
| Province | Average Selling Price per 1 sq. m, May 2022 (TL) | Current Average Price Per Housing Unit (TL) | Average Price Per Housing Unit in the Last 12 Months (TL) | Change in Price Per Year (%) |
|---|---|---|---|---|
| Mugla | 23 601 | 3 304 140 | 1 944 756 | 173.35 |
| Istanbul | 15 775 | 1 892 040 | 1 048 570 | 209.62 |
| Aydin | 13 988 | 2 098 200 | 1 232 500 | 178.48 |
| Antalya | 13 351 | 1 735 500 | 956 694 | 210.27 |
| Izmir | 12 135 | 1 577 030 | 912 125 | 166.41 |
| Balıkesir | 10 731 | 1 395 030 | 786 954 | 179.96 |
| Çanakkale | 10 234 | 1 258 782 | 690 000 | 169.6 |
| Yalova | 8078 | 1 050 140 | 625 000 | 161.09 |
| Bursa | 8063 | 1 128 820 | 625 950 | 159.76 |
| Mersin | 7907 | 1 186 050 | 625 050 | 194.27 |
| Mardin | 7745 | 812 805 | 505 726 | 130.03 |
| Adana | 7654 | 1 223 840 | 772 365 | 174.34 |
| Kocaeli | 7634 | 1 030 590 | 575 770 | 169.09 |
| Gaziantep | 7548 | 1 207 690 | 785 385 | 136.32 |
| Denizli | 7501 | 1 087 790 | 653 100 | 134.48 |
| Samsun | 7496 | 1 049 440 | 586 440 | 166.48 |
| Isparta | 7338 | 989 685 | 613 080 | 121.83 |
| Edirne | 7121 | 783 310 | 499 180 | 122.88 |
| Sinop | 6979 | 872 375 | 571 320 | 123.26 |
| Sakarya | 6944 | 847 168 | 564 960 | 144.42 |
| Tunceli | 6907 | 946 259 | 661 095 | 86.88 |
| Tekirdağ | 6755 | 945 700 | 550 395 | 179.02 |
| Ankara | 6712 | 905 175 | 549 120 | 150.73 |
| Eskişehir | 6712 | 872 560 | 533 650 | 125.99 |
| Manisa | 6612 | 839 724 | 561 250 | 122.7 |
| Rize | 6567 | 919 380 | 572 562 | 127.07 |
| Bolu | 6527 | 881 145 | 539 055 | 140.23 |
| Ordu | 6465 | 872 775 | 556 335 | 134.41 |
| Diyarbakır | 6421 | 1 053 044 | 680 000 | 166.1 |
| Trabzon | 6415 | 1 026 400 | 631 520 | 141.26 |
Summary Results:
- Tunceli province has the lowest price increase – +86%.
- Istanbul and Antalya have the highest price increase – above 200%.
- Mugla has added 173%, where the square meterage remains the most expensive.
- In 17 provinces, the average price exceeded one million Turkish lira (TL), and in another three provinces, it came close to this indicator (about 0.95 million TL and above).
It is also worth noting that May 2022 was the fifth month of the year and the most successful for Turkey in sales over the past three 12-month periods.
Rising rental prices
Along with the sale price, rental prices are also growing. According to Endeksa, rentals in Turkey have grown by 152% over the past year (the national average) and by 233% over the past 4 years.
The average rental per square meter is 46.72 Turkish lira (TL), and the average rental per housing unit is 5,139 TL per month.
It should be noted that in May 2022 alone the rent increased by 25% compared to the previous month. The rapid and steady growth of tariffs has resulted in the last recorded maximum of rent increases for the prolongation of long–term (annual) lease agreements was almost 40%, whereas a year ago, it was less than 20%. After that, the authorities had to intervene and for the next 12 months limit the rate of recalculation of rental amounts when renegotiating contracts by a maximum of 25%.
The provinces with the highest rental costs are Mugla, Antalya, and Istanbul. However, the top 3 in this indicator have not changed in recent months.
According to Endeksa, the annual rent increase in Mugla is 86%, the average rent per 1 square meter is 138.27 TL, and the average rent per housing unit is 15,763 TL. The average return on investment in housing in Mugla is 18 years.
Rent in Antalya has risen by 334% over the past year. The average rent per square meter is 93.56 TL, and for one residence it is 10,292 TL, with the average return on investment period being 16 years.
Statistics for 30 key provinces (for the convenience of readers - in the same order as in the previous table)
| Province | Average price per 1 sq. m. for rent, as of May 2022 (TL) | Average price per unit of rented real estate, as of May 2022 (TL) | Term of return of investments (year) | Change in the rental price for the year (%) |
|---|---|---|---|---|
| Mugla | 138.27 | 15 763 | 18 | 86.25 |
| Istanbul | 74.15 | 7786 | 17 | 163.13 |
| Aydin | 29.08 | 3490 | 37 | 88.22 |
| Antalya | 93.56 | 10 292 | 16 | 334.35 |
| Izmir | 59.39 | 7127 | 20 | 165.43 |
| Balıkesir | 24.31 | 2431 | 29 | 72.08 |
| Çanakkale | 33.32 | 3332 | 23 | 131.71 |
| Yalova | 27.97 | 3077 | 20 | 103.57 |
| Bursa | 24.96 | 2746 | 22 | 88.24 |
| Mersin | 23.88 | 3128 | 19 | 73.72 |
| Mardin | 22.41 | 2219 | 27 | 112.62 |
| Adana | 23.07 | 2768 | 25 | 103.26 |
| Kocaeli | 28.44 | 7634 | 21 | 149.61 |
| Gaziantep | 29.53 | 3219 | 22 | 85.24 |
| Denizli | 24.57 | 1867 | 24 | 91.95 |
| Samsun | 24.59 | 2459 | 22 | 114.39 |
| Isparta | 23.10 | 1502 | 24 | 88.73 |
| Edirne | 27.08 | 2464 | 20 | 76.97 |
| Sinop | 19.84 | 2163 | 27 | 71.03 |
| Sakarya | 29.39 | 3145 | 22 | 137.21 |
| Tunceli | 20.89 | 2381 | 24 | 18.56 |
| Tekirdağ | 27.94 | 3073 | 18 | 127.9 |
| Ankara | 32.60 | 3912 | 17 | 151.35 |
| Eskişehir | 25.92 | 2203 | 23 | 110.05 |
| Manisa | 22.11 | 2211 | 24 | 101.92 |
| Rize | 16.98 | 2207 | 27 | 75.59 |
| Bolu | 21.47 | 2104 | 24 | 130.86 |
| Ordu | 17.86 | 1965 | 27 | 99.89 |
| Diyarbakır | 20.18 | 2825 | 22 | 71.45 |
| Trabzon | 13.28 | 1726 | 31 | 58.28 |
Summary results:
- In Istanbul (a province that foreign nationals are interested in), and Antalya, rents have increased by 163% over the past year. The average rent per square meter is 74.15 TL, the average rent per housing unit is 7786 TL, and the return on investment is 17 years (it should be noted that it has decreased as earlier investments in Istanbul residential real estate paid off over much longer periods).
- Rent has risen the most in the provinces of Antalya, Izmir, and Istanbul, at 334.35%, 165.43%, and 163.13%, respectively.
- 15 provinces showed an increase of 100% or more. Two more provinces (Denizli and Ordu) fell short of this indicator by several percent.
- The fastest rental housing pays off is in Antalya (16 years) and Ankara and Istanbul (17 years each).
- Residential real estate will pay off the longest in Aydin province, after 37 years, according to indicators for May 2022.
- The most expensive housing in terms of price per square meter is in Mugla (138.27 TL), and the most budget real estate is in Trabzon, where a square meter costs almost 10 times less (13.28 TL).
- The highest average price per residence for rent is in Mugla and Antalya, at 15,763 TL and 10,292 TL, respectively. Other provinces are lagging by a large margin.
- In Isparta, renting a property will cost 10 times less than in Antalya, at 1502 TL per month.
The head of Endeksa comments on the situation and up-to-date trends
Görkem Ogüt, co-founder and CEO of Endeksa, evaluating the data from the company's analysts, clarified that although attempts by the authorities (housing departments) to regulate prices in the housing market continue, the trend towards an increase in both selling and rental prices persists. "However, in May, we began to observe the signs of mobility, especially in the market of "summer" real estate – the so-called holiday homes. The monthly rise in prices in coastal provinces continues to grow sharply. Istanbul remains one of the provinces with the highest growth in sales of both rental and residential real estate," the specialist said.
Despite the trend towards explosive price growth in the housing market, regulatory measures, regarding restrictions on rent increases, and the fight against fake ads on websites, will have an effect and may lead to a partial decline in the hype. At least, this could partially solve speculative price hikes, the expert believes.