It's the fourth quarter of the year. Analysts figure out the results of the first nine months, comparing with the figures of the previous year, and predict preliminary results for 2022, taking into account data on the current volume of transactions and the characteristics of the purchased lots.
Content:
- Plus 202% in price
- Two leading "triples"
- The situation with the new and used real estate units
- The most expensive areas
- Brief summary
Plus 202% in price
As of September, the increase in the value of residential real estate in Turkey averaged 202%. Just to be noted: during the ninth month of the year in the country 113,402 lots found new owners. Although September 2022 is considered by experts not to be the most successful period: the volume of sold housing decreased by 8% compared to August and by 23% compared to September 2021.
However, in three quarters – from January to September – 11.4% more residential real estate units were sold compared with the same period of 2021. Namely, 1,057,193 units, which is a very good figure.
The average cost of 1 m2 of residential property in Turkey at the end of September reached 11,972 Turkish lira (TL), the average cost of a housing unit was TL 1,556,360. The average return on investment from the period of previous calculations has not changed and now it is 19 years.
Real estate valuation technology platform Endeksa has confirmed that the annual increase in house prices in Turkey was as much as 202% as of September 2022.
Two leading "triples"
The top 3 in terms of transaction volume, in addition to Istanbul, included the capital of the country, Ankara, and Izmir, the third largest metropolis of the Republic.
Istanbul had the highest share of real estate sales in September with 19,089 lots or nearly 17% of the total (16.8%). Ankara shows 8,812 sold lots and almost 8% (7.8%), Izmir has 6,338 sales and a share of 5.6%.
These provinces act in a sense as "guiding beacons" of the Turkish construction and real estate sector. The annual increase in housing prices in Istanbul is above the national average - just 241%. The average sale price of 1 m2 of housing here is 20,208 TL, the average cost of a housing unit is TL 2,424,960.
In Ankara, the growth rate for the year is also above average (although the capital is lagging behind the largest metropolis) – plus 212% for the year. The average cost of a square meter in the province is TL 9,047, and the average price per lot is almost two and a half times lower than in Istanbul and equals TL 1,176,110.
In Izmir, the annual increase in value is somewhat behind the national one: it is 190%. On the other hand, both the average cost of one square meter of residential real estate and the average price per housing unit are higher than in Ankara, TL 15,362 and TL 1,997,060 respectively. As you can see, in terms of real estate value, Izmir is not far behind Istanbul.
At the same time, Antalya and Mersin were the provinces with the highest annual increase in value. They "bypassed" Istanbul, which turned out to be in third place in this case.
Housing prices in Antalya have increased by 244% over the past year, and the average selling price per square meter of residential real estate has grown to TL 17,123 (almost an Istanbul price!). The average cost of a lot in the province at the beginning of October is TL 2,054,760 (even more than in Izmir).
Only one percent behind Mersin, where the annual increase in value was 243%. The average price per "square" of housing is TL 10,923, the average cost of a residential real estate unit is TL 1,583,835. This is much more than in Ankara.
It should be noted that Mersin in this sense has been demonstrating impressive dynamics for the last six months.
Istanbul, as we have already mentioned, is in third place, although it lags behind Antalya and Mersin by a few percent: + 241% to the cost (we mentioned the price per square meter and per housing unit above).
The situation with the new and used real estate units
Both new developments and "secondary housing" somewhat "got down" in September and for the third quarter as a whole, but "grew" in terms of three quarters of the year.
In July-September, the number of housing transactions in Turkey decreased by 19% compared to the previous quarter and by 17% compared to the same quarter last year (total 330,795). Of these, 227,128 sales were recorded in the secondary housing market.
At the same time, the sales volume of the "secondary" decreased by about 22% compared to the previous quarter (April – June 2022) and by almost 18% compared to the same period last year (July – September 2021).
Evaluating the latest data, Endeksa co-founder and CEO Gerkem Ogyut said, “We see that the decline in real estate sales observed in July-August continues into September. There are two main reasons: lack of "stock" in the market (insufficient range of available lots) and buyers' expectation of lower prices (we at Endeksa have noticed that house price growth is slowing down). As for the last quarter of the year, which has always been very mobile for the real estate sector, we should expect that the market conditions will be more stable and the annual volumes of home sales figures will close with a positive result.”
It is quite possible, especially since used real estate sales in January – September reached 745,075 units. This figure is 13% higher than the same figure last year.
According to the results of the first three quarters of 2022, the volume of new developments sold exceeded one third of a million, it is 312,118 units. This is 9% more than during the same period in 2021.
The most expensive areas
As for the most “valuable” (expensive in terms of cost) areas across the country, according to the latest study, by the beginning of the fourth quarter of 2022 (October-December), Istanbul Sariyer showed the highest value among the areas of Turkey. It is followed by the Istanbul Beşiktaş; the third is Çeşme (province of Izmir).
The average price per unit of residential property in Sarıyer was, at last count, TL 9,075,312. This is six (!) times higher than the average for Turkey, and 3.5 times higher than the average for Istanbul.
In Beşiktaş, the average price was TL 9,002,868 (as you can see, the gap with the Sariyer area is minor); in Çeşme - TL 7,684,340.
As for the average price per square meter, the indicators are as follows:
- Sariyer – TL 63,045;
- Beşiktaş – TL 61,503;
- Çeşme – TL 45,247.
For the curious: for TL 100,000 in less demanded areas of Turkey, back in 2016, you could buy an entire apartment (1 + 0 or 1 + 1).
The top 10 most expensive regions of Turkey included seven regions from the province of Istanbul and one from the provinces of Izmir, Muğla, and Antalya.
The table provides more detailed information on 10 top areas.
| Districts | Average price per square meter (TL) | Average housing unit price (TL) | Rise during a year (%) | Average footage (square meters) | Return on Investment (years) |
|---|---|---|---|---|---|
| Sarıyer | 63,045 | 9,075,312 | 220 | 150 | 25 |
| Beşiktaş | 61,503 | 9,002,868 | 217 | 145 | 27 |
| Çeşme (Izmir province) | 45,247 | 7,684,340 | 147 | 170 | 21 |
| Kadıköy | 44,602 | 6,013,845 | 196 | 135 | 30 |
| Bakırköy | 44,035 | 6,317,424 | 207 | 140 | 30 |
| Bodrum (Muğla province) | 43,610 | 6,148,869 | 161 | 141 | 18 |
| Beykoz | 37,161 | 8,324,064 | 185 | 220 | 34 |
| Şişli | 34,341 | 3,880,307 | 336 | 110 | 17 |
| Prince’s Islands | 33,329 | 4,663,960 | 336 | 132 | 22 |
| Kaş (Antalya province) | 33,175 | 5,938,146 | 336 | 176 | 34 |
Brief summary:
- Sariyer, Beşiktaş, and Çeşme are the most expensive areas in terms of price per square meter and per real estate unit;
- Sariyer, Beşiktaş, and Kadıköy are the three most "valuable" districts of Istanbul regarding the cost of 1 square meter;
- Sariyer, Beşiktaş, and Bakırköy are the three leading districts in Istanbul in terms of the cost of a real estate unit;
- Three districts at once showed an increase over the year of more than 300%: Şişli, Princes' Islands, and Kaş (Antalya province);
- The most spacious apartments from the top 10 districts are located in Beykoz, on the Asian side of Istanbul: the average footage is 220 square meters;
- Of the 10 most expensive areas, housing pays off most quickly in the Istanbul district of Şişli (17 years) and in Izmir Cesme (21 years);
- The longest payback of lots at the moment is in Beykoz (Istanbul) and Kaş (Antalya province), 34 years each.
Gerkem Ogyut, traditionally commenting on the statistics in its various aspects, explained: “In the updated list of the most popular areas, the central “strip” near the Bosphorus, as well as the most popular resorts in Turkey, clearly stand out. It is here that already live - or dream of living - people with an income "above average"; it is here that the heart of the country's economy, trade, culture, art, and tourism beats. This is partly why the price increase in the mentioned areas is still excessively fast: up to 336% annual increase in value.”
