In our last article we talked about the investment profitability in resort real estate. Coastal regions aren't the only ones that are increasing in value, however; and not only Istanbul has potential out of megalopolises in terms of investments in housing.
For those who are choosing - we present an overview published by Hepsiemlak analysts, with detailed statistics at the end of May 2021 about larger cities, including those having no access to the sea, but well developed and promising in terms of economic and social development.
Despite the fact that over the past year the main flow of investments has really «moved» to the coastal regions, they are not the only ones among the ten most expensive provinces in terms of housing costs.
In particular, Samsun, Muğla, Düzce, Gaziantep, Antalya, Aydin, Balikesir, Adana, Sakarya and Kayseri have risen in price from 40% to 70% (with an average increase in prices across the country by 29.12%).
CONTENT:
- 10 provinces with the highest property price increases in Turkey
- Dynamics of Turkish cities with a million-plus population in terms of price increases
- The leaders in prices increase in districts
- Thus, what do we see?
- Two more especially interesting TOP-10 «participants»
- Istanbul is Turkey's largest city and its favorite areas
- Ankara and its leading regions
- Popular Areas in Izmir
- Antalya – «resort capital»
- «Champions» of Bursa
- Expert forecasts
10 provinces with the highest property price increases in Turkey
| Province | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Samsun | 1649 TL | 2812 TL | 70,5% |
| 2. | Muğla | 5006 TL | 7811 TL | 56,0% |
| 3. | Düzce | 1655 TL | 2528 TL | 52,8% |
| 4. | Gaziantep | 2204 TL | 3315 TL | 50,4% |
| 5. | Antalya | 3177 TL | 4772 TL | 50,2% |
| 6. | Aydin | 2108 TL | 3010 TL | 42,8% |
| 7. | Balikesir | 2443 TL | 3471 TL | 42,1% |
| 8. | Adana | 1972 TL | 2782 TL | 41,1% |
| 9. | Sakarya | 1991 TL | 2798 TL | 40,5% |
| 10. | Kayseri | 1620 TL | 2265 TL | 39,8% |
As you can see, Gaziantep, has even slightly overtaken Antalya, the favorite of Russians in terms of price growth dynamics. Real estate in the provinces, where it is very cheap, is also briskly rising in price, and the price per square meter kept at 1600 Turkish lira (TL) per square meter a year ago: in Kayseri, Düzce and Samsun. By the way, all three regions are attractive from a tourist point of view, although they are not well known to our compatriots.
Now let us compare not the regions (provinces), but the five largest cities, which, by the way, are consistently leading in sales of each housing category without exception from month to month, with minimal changes in the order of cities in the ranking.
Thus, according to the results of the past year - from May 2020 to May 2021 - the most profitable city with a million population for investors, as expected, turned out to be the «resort capital» of Turkey, Antalya.
However, Izmir, Ankara, Istanbul and Bursa are not too far behind it: each of the mentioned cities has enough «admirers» among investors. Many of them, by the way, acquire not one housing, but two, three or even more.
Dynamics of Turkish cities with a million-plus population in terms of price increases
| City | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Antalya | 3177 TL | 4772 TL | 50,0% |
| 2. | Izmir | 3397 TL | 4565 TL | 34,3% |
| 3. | Ankara | 2155 TL | 2874 TL | 33,3% |
| 4. | Istanbul | 4680 TL | 6068 TL | 29,6% |
| 5. | Bursa | 2158 TL | 2751 TL | 27,4% |
Istanbul is invariably the most expensive for 1 square meter of the five mentioned megalopolises: here, as we can see, by this summer the cost of a square meter has already exceeded 6000 TL.
However, taking into account inflation, the Turkish lira has fallen in price over the past year: thus, the prices for square meters in «expensive» (in Turkish terms) Istanbul are kept at 60,000 rubles / 1 sq. m. on average in the city in terms of rubles which is equivalent to the prices for economy-class housing in the so-called «average» suburbs - about 30-40 km from the capital and beyond.
The leaders in prices increase in districts
Provinces, as we know, are divided into several districts. And sometimes these territorial divisions show very different indicators from the province.
The following regions are in top ten in terms of profitability (at the beginning of June 2021) among all cities in Turkey:
- Sapanca.
- Urla.
- Seferihisar.
- Çeşme.
- Menderes.
- Döşemealtı.
- Didim.
- Kuşadası.
- Marmara Ereğlisi.
- Bodrum.
In all of them, the growth ranges from 63% to 75%. This rating is especially interesting, because the vast majority of Russians, even those interested in real estate in Turkey, may not be familiar with several names. Thus, these areas are worth taking a closer look at or, at least, it is good to collect information on them.
10 districts with the highest growth in property prices in Turkey
| District (province) | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Sapanca (Sakarya Province) | 3571 TL | 6250 TL | 75,0% |
| 2. | Urla (Izmir province) | 5622 TL | 9588 TL | 71,5% |
| 3. | Seferihisar (Izmir province) | 3392 TL | 5779 TL | 70,0% |
| 4. | Çeşme (Izmir province) | 9252 TL | 15734 TL | 69,9% |
| 5. | Döşemealtı (Antalya province) | 3030 TL | 5150 TL | 69,3% |
| 6. | Didim (Aydin Province) | 3284 TL | 5464 TL | 66,0% |
| 7. | Marmara Ereğlisi (Tekirdağ province) | 1848 TL | 3053 TL | 65,0% |
| 8. | Bodrum (Muğla province) | 8580 TL | 14160 TL | 65,0% |
| 9. | Menderes (Izmir province) | 4143 TL | 6786 TL | 64,0% |
| 10. | Kuşadası (Aydin province) | 3505 TL | 5720 TL | 63,1% |
Thus, what do we see?
Antalya is leading as a province, but not as a region with the most expensive areas: from this province, only Döşemealtı is in the TOP-10.
Döşemealtı was once only a district in the province of Antalya, but now it has become a full-fledged district of the city of Antalya itself located in the northern part, about 15 km from the city center. In terms of buying real estate, it is considered elite, since it is famous for its unique microclimate for the Antalya coast: the air here is amazingly clean, the humidity is slightly lower than on the coast, and it is even cooler here. Therefore, it is Döşemealtı that is ideal for those who want to buy or rent a house in this area, but do not tolerate the sweltering summer heat with high humidity.
This is Kuşadası that is gaining popularity and, accordingly, is rapidly increasing in price. As a resort, this city is already well known to Russians; it is big, beautiful, with an international port. You can get to Kuşadası from two airports at once - Izmir (Adnan Menderes) and Bodrum (Milas), which adds convenience to the resort.
Moreover, Izmir is not far from if someone wants to buy a house closer to «the most European city in Turkey».
Didim is a tourist area, one of the newest Turkish resorts.
Both Didim and Kuşadası geographically belong to the province of Aydin, located already on the Aegean coast; the province «took» two places at once in the TOP-10 rating in terms of price growth.
The leader in terms of increase in the average housing cost and investments volume over the past year is the province of Muğla which «got» only one line, but what sort of: Bodrum, «Turkish Riviera» which does not need additional advertising. By the way, it is here - with an impressive increase in prices of 65% per year - the cost per square meter has increased to one of two record-breaking indicators for this «top ten leaders»: more than 14,000 TL per 1 sq. m. That is already about 140,000 rubles / 1 sq. m. - almost like inexpensive housing on the outskirts of Moscow.
Although Bodrum in this case has already outstripped Çeşme - the new favorite of the past year: a resort area and a town in the vicinity of Izmir: 15,734 TL, and an increase of as much as 69.9%.
Izmir in general «occupied» four lines of the current rating at once: real estate in this province, which is already not cheap, is steadily becoming more expensive. Although market players believe that it can be overstated in some places, and urge the authorities to start adjusting tariffs.
Two more especially interesting TOP-10 «participants»
Marmara Ereğlisi is a town and district of the same name in the province of Tekirdağ, territorially - at Cape Liman, on the northern coast of the Marmara Sea, in the northwestern part of Turkey. Tekirdağ (provincial capital) is a large and very beautiful city with a mild Mediterranean climate. It is separated from Istanbul by about 90 km, it is about 40 km to the nearest airport but this airport is local one (i.e., you will have to travel by plane with a transfer). The province is nevertheless very popular with both Turks and tourists.
By the way, in Marmara Ereğlisi is now the most budgetary real estate among the ten fastest growing areas in price: about 3000 TL per 1 sq. m., which is equivalent to 30 000 rubles / 1 sq. m. - by Moscow standards, the prices are ridiculous.
Except for Çeşme, which fell short of only 0.1% to the 70% increase, three districts surpassed the 70% annual price increase: Seferihisar, Urla and Sapanca.
Sapanca is a region in the south-west of Sakarya province; like Tekirdağ, the province is located near the Marmara Sea . Sapanca is comfortably located on the shore of a huge lake (which, however, once upon a time was part of the Marmara Sea): the lake «separated» from the «progenitor» due to the movement of tectonic plates.
Although this area is not entirely «sea», it is very popular among travelers. There are many entertainments, opportunities for active recreation; there is one of the few ski resorts in the country close to it as well.
Istanbul is Turkey's largest city and its favorite areas
If there is a desire to purchase housing with the aim of a speedy return on investment in the most densely populated metropolis - Istanbul, then here there are the areas of the city that should be paid attention to at first. The highest growth in a year - from 44% to 53% - was demonstrated by five of them: Avcılar, Tuzla, Sultangazi, Adalar and Beylikdüzü.
Five fastest growing districts in Istanbul
| District | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Avcılar | 3191 TL | 4872 TL | 52,7% |
| 2. | Tuzla | 3362 TL | 5092 TL | 51,5% |
| 3. | Sultangazi | 2475 TL | 3677 TL | 48,6% |
| 4. | Adalar | 8165 TL | 11881 TL | 45,5% |
| 5. | Beylikdüzü | 3078 TL | 4439 TL | 44,2% |
We shall mention Adalar of these five as the area with the highest price per 1 sq. m. (11,881 TL), as well as Tuzla as one of the most intensively developing areas of the city, in terms of infrastructure and not only. We have already talked about the reasons why housing is becoming more expensive here.
Ankara and its leading regions
If we evaluate the data on price growth in the capital of Turkey, Ankara, then here the increase in value ranges from 34.6% to 41% in the «five leaders».
The first place belongs to the Etimesgut district. It is followed by Polatlı, Çankaya, Sincan and Gölbaşı.
As for prices today, the most «expensive» of these five districts is Gölbaşı, the central district of Çankaya is not much behind, and Polatlı turned out to be the most budgetary in terms of cost per square meter: here 1 square meter will cost more than three times cheaper than in Gölbaşı.
5 areas with the fastest growth in house prices in Ankara
| District | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Etimesgut | 2106 TL | 2968 TL | 41,0% |
| 2. | Polatlı | 1167 TL | 1643 TL | 40,8% |
| 3. | Çankaya | 3416 TL | 4760 TL | 39,4% |
| 4. | Sincan | 1460 TL | 2008 TL | 37,5% |
| 5. | Gölbaşı | 3715 TL | 5000 TL | 34,6% |
Popular Areas in Izmir
The most “European» city in Turkey and at the same time a «hybrid» of a resort and a metropolis - Izmir - has always been expensive and elite. Despite this, even with high prices, residential real estate here has increased in value since May 2020 very, very significantly: up to 70% per year. The five areas that have risen in price the most are:
- Urla.
- Seferihisar.
- Çeşme.
- Menderes.
- Çiğli.
Moreover, four of them at once, as you can see, were also included in the list of the fastest growing regions in price throughout Turkey.
5 districts with the fastest growth in house prices in Izmir
| District | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Urla | 5622 TL | 9588 TL | 70,5% |
| 2. | Seferihisar | 3392 TL | 5779 TL | 70,4% |
| 3. | Çeşme | 9252 TL | 15 735 TL | 70,1% |
| 4. | Menderes | 4143 TL | 6786 TL | 63,8% |
| 5. | Çiğli | 3167 TL | 4922 TL | 55,4% |
It is significant that Urla, Seferihisar and Çeşme have a minimal gap in the indicator: tenths of a percent.
Çiğli turned out to be the most budgetary of the five: the actual cost per square meter here at the beginning of summer was 4922 TL. Çeşme, on the contrary, is ahead of even many districts of Istanbul: 15,735 TL per square meter.
Antalya – «resort capital»
This is the largest city on Antalya coast, surrounded by resorts popular among Russians (in addition to the fact that many prefer to relax directly in Antalya, combining beach activities with city tours, shopping and a large-scale excursion program) is in great demand among Russian and not only investors in terms of purchasing housing here: hospitals, numerous schools, universities, developed infrastructure, beautiful recreation areas.
As for the regions that have risen in price, the most expensive one is Döşemealtı, already mentioned in the TOP-10 regions of Turkey. It is followed by Kemer (city and resort), Alanya (city and resort, which, by the way, is also intensively building up its infrastructure), Konyaalti (Antalya region) and Muratpaşa (Antalya region). The growth there ranged from 48% to 70%.
5 districts with the fastest growth in house prices in Antalya
| District | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Döşemealtı | 3030 TL | 5150 TL | 70,0% |
| 2. | Kemer | 5326 TL | 8396 TL | 57,6% |
| 3. | Alanya | 4038 TL | 6286 TL | 55,6% |
| 4. | Konyaalti | 4698 TL | 7238 TL | 54,1% |
| 5. | Muratpaşa | 3226 TL | 4773 TL | 47,9% |
Döşemealtı was pretty ahead of the rest of the regions, with a margin of almost 13%. Kemer, Alanya, Konyaalti and Muratpaşa follow each other with a gap of only a few percent, but the highest cost per square meter is now in Kemer: 8396 TL. The lowest is in Muratpaşa almost half as much: 4773 TL.
«Champions» of Bursa
Bursa, the former capital of the Ottoman Empire, is now a large city in the northwestern part of the country, the fourth largest in Turkey after Istanbul, Ankara and Izmir. Bursa has no access to the sea, but it is a large administrative, economic and industrial center. Housing here has also risen in price quite actively lately.
The regions of Bursa with the highest price increases over the past year were: Gemlik, Mudanya, Nilüfer, Yıldırım and Osmangazi. The increase ranged from 19.2% to 45.1%.
5 areas with the fastest growth in house prices in Bursa
| District | May 2020, average price for 1 sq. m. | May 2021, average price per 1 sq. m. | Prices change in a year | |
|---|---|---|---|---|
| 1. | Gemlik | 1842 TL | 2672 TL | 45,1% |
| 2. | Mudanya | 2690 TL | 3571 TL | 32,8% |
| 3. | Nilüfer | 2841 TL | 3742 TL | 31,7% |
| 4. | Yıldırım | 2000 TL | 2390 TL | 19,5% |
| 5. | Osmangazi | 2296 TL | 2736 TL | 19,2% |
The most expensive is Gemlik (more than 45% per year); Mudanya and Nilüfer have a 32-33% increase, Yıldırım and Osmangazi have about 19% each.
The most affordable housing among them at the moment is in Yıldırım (2390 TL, or about 24,000 rubles / 1 sq. m), and the most expensive is in Nilüfer: 3742 TL (about 37,000 rubles / 1 sq. m).
Expert forecasts
Hepsiemlak CEO Zeynep Tandogan, comparing the May real estate index to last year, said that Samsun is clearly - and justifiably - leading, steadily increasing so-called «added value»: place was last year's home lending campaign. In June last year, house sales in Samsun unexpectedly increased 4.5 times, and in July - 5.5 times. The slowdown in new housing construction in the province due to the pandemic and rising construction costs led to a deterioration in the balance of supply and demand, and prices increased by 70%. However, after the May lockdown, the construction industry has already begun to restore full-fledged work, entering the schedule. As the supply increases, the rapid growth in house prices, in our opinion, will slow down somewhat; however, we do not expect a decline in the value of residential real estate in Samsun province.
The opinion of an expert on other «champions»: «Investors interest is now largely focused on the Sapanca area in Sakarya. An important indicator is also the high demand for the districts of Urla, Seferihisar, Çeşme and Menderes in Izmir, Döşemealtı in Antalya, Didim and Kuşadası in Aydin, Marmara Ereğlisi in Tekirdağ and Bodrum in Muğla. The demand for resort locations has been high in Turkey almost every year, but the pandemic has pushed it up; in the coming years, the growth in prices for residential real estate will continue here, although it may not be as fast as last year. Accordingly, these areas and these regions will continue to bring very good earnings to investors.
On the other hand, one cannot ignore other provinces and regions, including continental ones, where transport projects are actively developing. They will continue to bring decent income to investors - as it has been so far. If we assess the dynamics of housing prices over the past five years, there have been temporary small recessions, but never a sharp «subsidence»: in these economically developed and ever improving in terms of urban and social life areas, where business is also concentrated, tariffs continue to grow steadily.
As the expert finally explained, in the future, the rate of price growth may decrease depending on the characteristics of a particular season or economic factors, but potential investors expecting a noticeable drop in prices (due to temporary troubles of any kind) risk losing their fortune: it is unlikely to count on this. The rise in prices is stable, and is equal to tens of percent annually.
