The real estate market in Turkey has shown excellent results by the end of 2021. Turkish real estate was purchased more often by foreign buyers. The State Institute of Statistics has published a sales report: 58,500 properties were sold to foreigners over the past year. This is almost 2 times more than a year earlier. Experts predict an increase in housing prices in the Republic of Turkey. But this will not lead to a drop in demand. On the contrary, according to market researchers, the number of people willing to buy apartments and houses in Turkish cities will increase.
What is the situation with the Turkish real estate market now and how will it change in 2022? Let's try to figure it out.
Contents:
- The state of the real estate market in Turkey in 2021-2022
- How have the preferences of Turkish home buyers changed after the crisis?
- Dynamics of real estate prices in Turkey after the crisis
- The cost of housing in Turkey
- Conclusion
The state of the real estate market in Turkey in 2021-2022
Real estate market trends and price dynamics in Turkey in 2022 are likely to be positive. This opinion is based on the market results for 2021. According to the total number of sales, the residential sector was actively growing, primarily due to local buyers. The share of housing sales to foreigners, despite impressive absolute figures, amounted to only 3.9% of the total number of purchase and sale transactions.
In total, 1,491,856 houses and apartments were sold in Turkey in 2021. Even the rapid growth in the cost of Turkish housing has not reduced the desire of buyers to purchase real estate in the country. In 2021, not only were tourist provinces such as Alanya and Antalya and their surroundings in demand, but also large cities, primarily Istanbul. Experts predict that in 2022, the situation will remain unchanged in these areas.
Simple registration of a residence permit in Turkey as well as affordable citizenship - these are the reasons why real estate agencies in Turkey receive a flurry of requests for the purchase of housing. To obtain a Turkish residence permit, unlike other countries, the cost of real estate in Turkey bought by a foreigner does not matter. As for obtaining Turkish citizenship for investments, the number of required investments is lower than in many countries; an investor can become a citizen of the country when purchasing housing for USD 250,000. While such methods of getting a residence permit and citizenship will work, the demand for apartments and houses in Turkish cities will grow and the real estate sector of Turkey will develop.
There are factors that potential investors should pay attention to. Thus, apartment prices in Turkey will continue to rise in 2022. The main reason for this jump is because of the increase in prices for building materials. Another reason why there are changes in real estate prices in Turkey is the limited number of apartments offered for sale. Of course, construction companies are developing new land in currently undeveloped areas which will provide new options in the near future. But until this happens, the cost of real estate in Turkey will not fall.
How have the preferences of Turkish home buyers changed after the crisis?
The Republic of Turkey has always had a number of advantages over European countries regarding permanent residence. The cost of living and real estate prices is lower here and it's easier to get a residence permit. During the pandemic, the Turkish coast of the Mediterranean began to gain even more popularity among Russian citizens.
Since the borders were not closed immediately, some Russian citizens decided to «sit out» the quarantine at Turkish resorts. A lot of real estate was rented and during the pandemic, some guests decided to purchase their own apartments in Turkey. As soon as the restrictions eased, the market began to grow.
In 2021, buyers preferred apartments in new buildings in Turkey as a reliable investment to multiply capital. After a period of self-isolation, villas with a private territory, a garden and a swimming pool have been in demand. Buyers began to purchase more spacious apartments so that each family member had their own personal space. Particular interest was shown in land plots but there was practically no available land left. In 2022, all these types of residential property will also be in demand.
Dynamics of real estate prices in Turkey after the crisis
The prices of villas and apartments in Turkey in 2022 are about 40% higher compared to the figures of 2021. Here is an example: a 2-story villa of 220 square meters with 4 bedrooms and 3 bathrooms, a private garden and a swimming pool, located in Kemer near the sea, can now be purchased for USD 420,000. A year earlier, similar houses were sold 20-30% cheaper.
In 2020-2021, the cost of Turkish housing increased by an average of 30%. Let's analyze the dynamics of prices in different regions.
In 2020, the cost of properties in Antalya increased by 50%, in Istanbul by 25%, and in the Mugla area by more than 60%. In 2021, the latter increased by another 40%.
The cost of housing in Turkey
You can familiarize yourself with the cost of apartments in Turkey at the beginning of 2022:
| Prices | Average apartment price | Average cost per square meter | Number of proposals |
|---|---|---|---|
| Budget segment up to EUR 40,000 | 37 057 | 690 | 135 |
| Luxury segment from EUR 250,000 | 494 751 | 3 264 | 484 |
| All proposals | 126 587 | 1 318 | 7 076 |
There is a table with house segments:
| Prices | Average apartment price | Average cost per square meter | Numbers of proposals |
|---|---|---|---|
| Budget segment up to EUR 100,000 | 84 337 | 641 | 26 |
| Luxury segment from EUR 500,000 | 1 268 595 | 3 069 | 297 |
| All proposals | 577 874 | 1 801 | 969 |
The tables show data on «budget» and «luxury» real estate segments. But the cost of housing in Turkey depends on other factors. Location is important like whether it is a metropolis or province or how far the property is from the sea. The cost also depends on the type of real estate like secondary or new buildings. Another important factor is infrastructure - the internal amenities of the residential complex and its location near important urban facilities such as road junctions, public transport, supermarkets, hospitals, schools, and kindergartens.
Foreign buyers often use the services of agencies on websites where the price of real estate in Turkey is now indicated in dollars or euro.
Here are some examples of current offers. A small 1-bedroom apartment with a total area of 46 square meters under construction today can be bought for EUR 66,300. The property is located in the coastal village of Mahmutlar near Alanya.
2-room apartments in Antalya in a beautiful new residential area with all amenities and a swimming pool of 60 square meters are sold for EUR 54,000.
Do you want to buy a ready-made property with everything you need? It is possible to buy an apartment in Turkey with a furnished kitchen and appliances, such as a washing machine and air conditioning. A spacious 3-bedroom apartment with an area of 120 square meters located 25 km from the sea will cost EUR 73,000.
For those who prefer the elite segment, Turkey offers a wide selection of apartments and penthouses. A chic fully furnished townhouse on the seashore in Bodrum with 2 bedrooms and a balcony and an area of 72 m2 is for sale for EUR 274,000.
The plot is getting smaller every year. Today, more than 90% of the plots are privately owned. The cost of the plots is determined by a number of criteria such as location and area. Prices range from USD 100,000 to USD 32,000,000. For instance, a plot of 4797 m2 in one of the districts of Alanya near the sea is for sale for USD 26,500,000 or USD 336,000. This kind of site will be of interest to investors who are thinking about building a commercial facility. If you are interested in the option to build your own house, you can search for resorts in Antalya. You can buy a plot of 300-400 square meters with connected communications for about USD 35,000.
Conclusion
Although the cost of apartments and houses has increased in 2022, the demand for Turkish apartments and cottages remains high. Turkish real estate prices in 2022 are still quite attractive for buyers, despite the increase. Analysts predict further growth. Therefore, investors are advised not to delay the purchase. It should be understood that in such a popular market like Turkey, the best time to purchase is now.