REAL ESTATE SALES IN TURKEY: RESULTS OF 2020 BY MONTHS

The troublesome 2020 for the entire world economy allowed Turkey to perform a real economic miracle against the background of general stagnation. And the epicentre of the miracle was the construction and real estate sector. The first wave of the coronavirus pandemic literally stopped the housing market in the country. In the spring of 2020, no real estate transactions were registered for more than a week throughout Turkey. To save the day, the authorities launched an unprecedented mortgage campaign with the lowest interest rates in history. As a result, a record number of housing units were sold in Turkey in 2020. It was almost one and a half million units. The construction and real estate sector revived and literally restarted the entire economy of the country. Here is a chronicle of events of 2020 by months on the portal Türk.Estate.

REAL ESTATE IN TURKEY IN JANUARY 2020

Contractors and sellers of Turkey’s housing had high hopes for the New Year 2020. The results of the first month of sales only strengthened the positive mood of the Turkish real estate market players: 113 thousand 615 objects were sold in the country for the first month of the year. It was 55.8 percent more than in January 2019. At the same time, almost four thousand transactions were made by foreign buyers of houses and apartments in Turkey. Citizens of Iraq, Iran, the Russian Federation, Afghanistan and Yemen were the most active buyers of Turkey’s housing in January 2020. Istanbul, Ankara and Izmir were the most popular provinces among apartment buyers in Turkey. Istanbul, Antalya and Ankara were the most popular provinces among foreigners.

REAL ESTATE IN TURKEY IN FEBRUARY 2020

The coronavirus did not reach Turkey in February, so apartment sales remained at a high level at the end of the month. In total, 118 thousand 753 housing units were sold in February 2020. It was 54 percent more than in February 2019. The share of real estate sales to foreigners remained as high as ever. It was 4 thousand objects. Citizens of Iran, Iraq, Russia, Afghanistan and Jordan were the most active investors in Turkey in February. The provinces of Istanbul, Ankara and Izmir remained the leaders of real estate sales to Turkish citizens in February 2020. Foreigners bought a lot of houses in Istanbul, Antalya, Ankara, Yalova and Bursa in February.

REAL ESTATE IN TURKEY IN MARCH 2020

Due to worrisome world news and the gradual spread of the coronavirus, real estate sales began to decline in March. The first infected people appeared in Turkey on March 11, and the situation quickly worsened. Construction and housing sales slowed down as a result of the quarantine restrictions. So from March 1 to March 11, no transaction of purchase and sale of housing or commercial property was recorded in Turkey. The market completely stopped for ten days. However, the situation was stabilized in the second half of the month. 108,670 housing units were sold at the end of March 2020. It was 8.49 percent less than in February 2020 but 3.4 percent more than in March 2019. Foreign sales decreased in March by 3 percent in comparison to the same period in 2019 and amounted to 3,366 objects. Citizens of Iran, Iraq, Russia, Afghanistan and Palestine were the five most active foreign buyers of housing in Turkey. Istanbul, Ankara and Izmir were the most popular provinces for apartment buyers in Turkey. Istanbul, Antalya, Ankara, Mersin and Bursa became foreigners' preferences.

According to the results of the first quarter of 2020, real estate prices increased by 2.8 percent in Turkey.

REAL ESTATE IN TURKEY IN APRIL 2020

The second quarter of 2020 began with a huge Turkish market collapse. Comparing to April 2019, apartment sales decreased by more than half - by 55.5 percent. 42 thousand 783 housing units were sold in Turkey in April. The number of sales of houses and apartments to foreigners was the lowest in Turkey in April since June 2013: only 790 objects (78.9 percent less than in the same month of 2019). The three most popular provinces Istanbul, Ankara and Izmir remained unchanged in April among apartment buyers in Turkey. Foreigners preferred to buy housing in Istanbul (it accounted for almost half of all sold properties), in Antalya, Ankara, Izmir and Yalova in April. The Chinese unexpectedly turned out to be in the TOP 5 of foreign buyers of April. Iran, Iraq, Russia, Afghanistan and China were in the TOP 5.

REAL ESTATE IN TURKEY IN MAY 2020

The total number of sales exceeded the April result in May but still remained critically low. It was only 50 thousand 936 objects (44.6 percent less than in May 2019). At the same time, foreigners bought only 860 housing units in Turkey in May. It was 78.1 percent less than in May 2019. Turkish authorities decide to launch a historic mortgage campaign for the country's citizens. The interest rates on loans are such that everyone who were planning to buy a house in future became motivated to do so right now. State-owned banks offered citizens mortgage loans with a rate of 0.72 percent in Turkey - for secondary housing and 0.64 percent - for new apartments. The attractiveness of the latest mortgage terms was complemented by a minimum down payment, a deferral of first payments for a year (for two years in commercial banks) and a maturity within 15 years. The historic mortgage campaign was announced in late May and launched in early June.

Istanbul, Ankara and Izmir were the most popular provinces for apartment buyers in May, while foreign investors preferred to invest in real estate in Istanbul, Antalya, Ankara, Izmir and Mersin. Citizens of Iran, Iraq, Afghanistan, China and Azerbaijan were in the TOP of the most active foreign buyers in May. Russians bought only 40 properties in May in Turkey.

REAL ESTATE IN TURKEY IN JUNE 2020

The first summer month of 2020 marked the beginning of an unprecedented hype in housing sales in Turkey. 190 thousand 12 objects were sold in June. It was 209.7 percent more than in the same period of 2019. And although foreigners could not take part in the historic mortgage campaign, apartment sales to foreign citizens also increased to 1 thousand 664 objects in June (38.1 percent less than in June 2019). Istanbul, Ankara and Izmir became the most popular provinces among buyers in June. Foreigners most often bought villas and apartments in Istanbul, Antalya, Ankara, Izmir and Mersin in June. The five countries where citizens bought housing most actively in June looked like this: Iran, Iraq, China, Azerbaijan and the Russian Federation.

In the second quarter of 2020, the growth of real estate prices was recorded at the level of 11.59 percent in Turkey, which allowed the Republic to become the world leader in housing price growth.

REAL ESTATE IN TURKEY IN JULY 2020

Turkey’s apartment sales were also at a record high in July. For the second summer month, 229 thousand 357 objects were sold, which is 124.3 percent more than in July 2019. At the same time, despite the coronavirus restrictions, foreigners bought 2 thousand 751 real estate objects in July (34.6 percent less than in the same month of 2019), but almost twice as much as a month earlier. As in previous months, the provinces with the highest apartment sales remained Istanbul, Ankara and Izmir. Istanbul, Antalya, Ankara, Mersin and Yalova were the most popular provinces among foreign buyers in July. Citizens of Iran, Iraq, Russia, Afghanistan and Germany most often bought apartments in Turkey in July.

In total, in the first seven months of 2020, foreign investors purchased 17 thousand 300 objects in Turkey (29.6 percent less than in the first seven months of 2019).

REAL ESTATE IN TURKEY IN AUGUST 2020

As expected, the result of the August sales of Turkey’s real estate was less than the July one because the unprecedented mortgage campaign began to wind down gradually. The skyrocketing interest rates on loans were recorded in August in both public and private banks, and the grace period for repayment was canceled. In total, 170 thousand 408 housing units were sold in August 2020 (54.2 percent more than last year's August result). Foreigners bought 3 thousand 893 housing units in Turkey. It was 8 percent more than in August 2019. The three most popular provinces remained unchanged in August. It was Istanbul, Ankara and Izmir. Foreigners most often chose Istanbul, Antalya, Mersin and Yalova to buy a house in August.

If we take the annual growth rate of prices for residential real estate in Turkey (from August 2019 to August 2020), the price growth recorded was an average of 25.9 percent in the last month of summer in the country.

REAL ESTATE IN TURKEY IN SEPTEMBER 2020

A total of 136,744 properties were sold in Turkey in the first month of autumn. It was 6.9 percent less than in September 2019. At the same time, foreign sales increased by 26.1 percent in comparison to the same period last year and amounted to 5 thousand 269 objects. Istanbul, Ankara and Izmir remained the most popular provinces among Turkey’s apartment buyers in September, while Istanbul, Antalya, Ankara, Bursa and Mersin were in the TOP among foreigners. Iranians, Iraqis, Russians, Kuwaitis and Kazakhstanis were the most active buyers in September.

REAL ESTATE IN TURKEY IN OCTOBER 2020

The mortgage campaign continued in Turkey in October, but the conditions were no longer as favorable as they had been at the beginning. And most of those who wanted to buy an apartment in Turkey with a mortgage had already done it in the summer and early autumn. So real estate sales continued to decline. In total, 119,574 housing units were sold in Turkey in October 2020. It was 16.3 percent less than in October 2019. The provinces of Istanbul, Ankara and Izmir remained the sales leaders. Foreign buyers bought 5 thousand 258 houses and apartments in Turkey in October. The growth of foreign housing sales was 23.1 percent in October in comparison to the same period last year. Istanbul, Antalya, Ankara, Yalova and Bursa were the most popular provinces among foreign investors in October. Citizens of Iran, Iraq, Russia, Afghanistan and Kazakhstan were the most active buyers in October.

REAL ESTATE IN TURKEY IN NOVEMBER 2020

The last month of autumn was marked by fairly good apartment sales, despite a decrease in mortgage hype and higher rates in state and commercial banks in Turkey. In total, 112 thousand 483 real estate objects were sold during the month (18.7 percent less than in November 2019). Istanbul, Ankara and Izmir were still the most popular provinces among Turkey’s apartment buyers. Foreigners purchased 4 thousand 962 objects in November. It was 24.4 percent less than in the same period of the previous year. Istanbul, Antalya, Ankara, Yalova and Bursa were the most popular provinces for foreigners in November. Iraq, Iran, Russia, Afghanistan and Kuwait were the five countries in November where citizens bought housing most actively in Turkey. European citizens were not included in the TOP of the last months due to the closed air traffic between Turkey and Europe.

REAL ESTATE IN TURKEY IN DECEMBER 2020

Sales ended at 105 thousand 981 objects in December. It was 47.6 percent less than in December of the previous year. Istanbul, Ankara and Izmir became the most popular provinces among property buyers in Turkey like the previous months of 2020. In the last month of the year, foreigners became owners of 4 thousand 427 houses and apartments in Turkey (a decrease of 16.4 percent year-on-year). Istanbul, Antalya, Ankara, Mersin and Yalova were the most popular provinces among foreigners in December. Iran, Iraq, Russia, Afghanistan, Azerbaijan were in the TOP of foreign buyers in December.

In total, almost one and a half million properties were sold in Turkey in the first twelve months of 2020. This annual result was the highest one ever.