During a challenging period for Turkey between the February earthquake and presidential elections property sales have been somewhat low. Despite this, real estate for sale in Turkey has shown a significant overall price growth dynamic in recent years. This applies to both property purchases and rentals in Turkey.
Content:
- Property for sale in resort areas increased by 900%
- Volume of property for sale in resort areas
- Volume of rental properties in resort areas
- Situation with rentals in coastal locations
- Antalya and Alanya—in high demand
Analysts have released fresh statistics, and let’s delve into the research results.
Rental prices have surged by hundreds of percentage points. Over the last four years, official rental prices have increased eightfold. While this figure might be lower in less sought-after provinces, in key locations, the cost has risen by an average of 700%.
Comparing the growth rates of rents nationwide, one of the top managers of the Istanbul Municipality (İBB), Buğra Gökçe, specifies that the “housing crisis is deeper than anticipated”: the average rent increase in major cities from April 2019 to April 2023, spanning four years, amounted to 697%.
Going back to the rates from four years ago: if in April 2019, the average monthly rent in 81 cities was 728 Turkish Liras (TL), today the averaged price has grown to 5,058 TL, or seven times higher.
In many cities, quality rental housing below 10,000 TL is no longer available in popular areas, and in megacities, one can only find an old apartment on the outskirts for this amount.
“Although in April 2019, the rent size in Turkey was only 27% of the average wage,” continues Gökçe, “today it is already 45%.” In Antalya, this figure is 120%, in Istanbul – 117%, and in Muğla – 187%. In 30 cities, provincial capitals, the average housing rental price has surpassed 70% of the minimum wage.
The rental rate increase in the province of Antalya over four years is over 1,100% – a staggering figure. In the rapidly gaining popularity Mersin, it is 963%, in Muğla with its sought-after resorts, including the particularly expensive Bodrum – 935%, in Ankara – 833%, in Istanbul – 713%.
In the country’s 10 largest cities, the ratio of rental cost to the minimum wage has increased from 46% in 2019 to 86% at the end of this spring. In the 30 largest settlements in the Republic of Turkey, where a similar situation is noted, 75% of the country’s population resides, ultimately forced to spend a significant portion of their income – if not the entire salary – on housing.
Students, young people starting new jobs, linear office workers practically have no opportunity to rent an apartment now. According to economists, if authorities do not take serious measures soon to address the housing crisis, which has been worsening for several years, the situation could become critical.
It is noteworthy that the recently elected leadership of the country promises to bring rental rates under control.
Property for sale in resort areas increased by 900%
Real estate in tourist areas is rapidly increasing in price. For example, Şile, one of the most sought-after resort areas near Istanbul, has gained 884% in value over the past three years.
One of the main factors contributing to the ongoing rise in property prices is intense internal migration related to events in February. The cost of real estate is being pushed up by increased demand for low-rise housing or mansions. The ability to work remotely is another reason for the clear preference for coastal areas, which have transformed from summer destinations to year-round residences, even for the so-called white-collar workers – numerous employees of major companies.
According to a study by the analytical portal Endeksa, those who cannot leave Istanbul, for example, are now opting for standalone or low-rise houses located near the metropolis, having to commute there for work every day or several times a week. For instance, in Silivri and the aforementioned Şile, housing has increased in price by almost 900% in the last 36 months and by 132% in the last 12 months alone.
Antalya also remains popular, with a significant increase in property prices. Over the last three years, housing prices have risen by 867%, and in the last year alone, by 141%. As of April 2023, the average price per square metre of residential real estate was 39,038 TL in Şile and 25,997 TL in Antalya.
For a complete picture, let’s recall the rental rates for both provinces: in Şile, it’s +144% in 12 months and +739% in the last three years (36 months), in Antalya, +79% and +434%, respectively.
“And what about the Turkish Riviera – Bodrum?” you might ask. For many tourists, this city is the “number one choice” due to its social facilities, infrastructure that can provide high-quality services, and convenient transportation accessibility. According to the Endeksa portal, the price increase for housing in Bodrum over the past year is approximately 93%. As of April 2023, the selling price per square metre here was 60,456 TL.
As for the city’s districts, Gumet/Yalikavak are particularly in demand. Here, the price per square metre of real estate is even higher – 79,122 TL. Overall, in the past three years, Bodrum has “gone up” by 675%.
Volume of property for sale in resort areas
If residential real estate in resort areas is in such demand, a logical question arises: are there still properties for sale? To what extent has the assortment of available lots been exhausted?
Let’s turn to statistics again. The largest number of residences available for purchase is in Antalya (where many developers have directed maximum resources) – 5,744 units (data as of the end of April 2023).
Following Antalya in terms of assortment is the resort port city of Kuşadası with 4,205 lots, Alanya with 2,425 properties, and Bodrum with 2,210 units of housing.
However, in terms of the growth rate of ready-to-sell properties (including secondary housing), Şile takes the lead: +100% in a year. Next is the Bodrum district of Turgutreis: +65%. Foca and Antalya lag noticeably in this indicator: +36%.
Volume of rental properties in resort areas
Regarding rental properties, as of April 2023, the maximum stock of rental housing is concentrated in Antalya: 2,068 summer residences. Following in terms of assortment are Bodrum – 1,470 and Alanya – 821 residential units.
According to experts’ estimates, the volume of rental housing in Turkey’s resort areas is decreasing. The most significant “collapse” of available housing (-38%) is observed in Çanakkale. Similar indicators are seen in Silivri (-35%) and Antalya (-25%).
Situation with rentals in coastal locations
Similar to the real estate market, almost analogous growth in indicators is occurring in the rental market in coastal areas. For example, rental prices in Mersin have increased by 124% in the last year, and the cost per square metre of rented houses is 78.69 TL.
In Kuşadası, rental housing has increased by 108% in the last 12 months, in Çanakkale – by 133%, in Fethiye – by 117%.
Antalya and Alanya—in high demand
The province of Antalya and the resort town of Alanya are among the most sought-after areas for foreigners. Over the past year, the population here has sharply increased, mainly due to arrivals from abroad.
The consequences did not take long: rental fees in Alanya have increased by 613% in the last three years and by 98% in the past year. As for the cost of purchasing property, in Alanya, the price increase over three years was 815%, and over the past year – 130%.
In the first four months of 2023, the highest number of real estate transactions with citizens of other countries was recorded in five provinces: Antalya, Istanbul, Mersin, Ankara, and Yalova. Local real estate is purchased by citizens of Russia, Iran, Iraq, Ukraine, and Kazakhstan.
After the announcement of the election results, Turkish real estate will continue to appreciate, as buyers who postponed purchasing until the end of the period of political uncertainty will return to the market.