After the autumn-winter slump, the property market in Turkey has begun to pick up momentum once again. There are now more opportunities available for foreigners, who are not affected by changing interest rates like the local population. Moreover, they stand to benefit from inflation, as prices in dollars have slipped slightly in recent months.
We’ll provide you with more details about the current costs, including their dollar value and discuss cities that may be worth considering.
But first, let’s take a quick look at the situation at the beginning of spring 2024.
Content:
- What about the property sales market?
- Sales statistics for provinces with the highest number of closed deals (February 2024)
- Conclusions:
- Purchases on credit
- Decrease in prices in dollar equivalent
- Price dynamics over the past year
- Cities to pay attention to
- Here are the districts of Ankara where the most deals were concluded during the month (in alphabetical order):
- Sales to foreigners for January – February
What about the property sales market?
In February, the volume of concluded transactions finally showed growth, +17.3% compared to February last year. Meanwhile, the values of property in Turkey continue to rise, with the average price of a residential unit nationwide reaching TL 3,220,111 (equivalent to USD 100,500 at the time of writing) and the cost per square metre reaching TL 24,581 or USD 771.
The first pleasant news for potential buyers is that by the end of this winter, the average investment return period for a flat purchased in Turkey has been reduced to only 15 years.
The second is that sellers in the segment of secondary housing are increasingly willing to provide discounts. We have already mentioned the third piece of good news: the price reduction in dollar equivalent.
"If we compare the sales figures for January and February 2023 with the same period in 2024, there’s an overall decrease of 2 per cent, but it’s minimal and is due to a reduction in mortgage transactions. If there were no barriers to home buying, such as credit problems (local people cannot get an approved mortgage from a bank or it’s given at a very high interest rate that people are not willing to pay — Ed. note), we could be talking about a 3 per cent increase. So, suppose we consider a certain lack of supply, increasing interest rates on loans, the price-to-construction cost ratio and most importantly, the persuasive 'bargaining power' provided by the prospect of a cash purchase. In that case, it’s safe to say: now is the right time to make a deal," said Görkem Öğüt, founder and CEO of Endeksa.
Sales statistics for provinces with the highest number of closed deals (February 2024)
| Province (in descending order of number of transactions) | Number of housing units purchased in February 2024 | Share in total sales (in %) | Average price of 1 m2 (in TL) | Average price per housing unit (in TL) | Change in price per year (in %) | Investment return period (year) |
|---|---|---|---|---|---|---|
| Istanbul | 16,344 | 17 | 37,582 | 4,321,930 | 59 | 17 |
| Ankara | 8,300 | 9 | 20,404 | 2,652,520 | 78 | 13 |
| Izmir | 5,168 | 6 | 31,234 | 3,904,250 | 59 | 16 |
| Antalya | 5,028 | 5 | 32,767 | 3,768,205 | 50 | 19 |
| Bursa | 3,708 | 4 | 21,282 | 2,851,788 | 54 | 15 |
| Mersin | 2,732 | 3 | 22,101 | 3,094,140 | 55 | 16 |
| Gaziantep | 2,634 | 3 | 17,173 | 2,730,507 | 60 | 15 |
| Tekirdağ | 2,299 | 2 | 18,997 | 2,469,610 | 72 | 14 |
| Kocaeli | 2,237 | 2 | 22,642 | 2,966,102 | 65 | 15 |
| Konya | 2,215 | 2 | 17,370 | 2 761 830 | 74 | 16 |
| Kayseri | 2,212 | 2 | 12,880 | 2,125,200 | 59 | 18 |
| Balıkesir | 2,136 | 2 | 27,680 | 3,404,640 | 71 | 18 |
| Adana | 2,029 | 2 | 18,043 | 2,724,493 | 41 | 17 |
| Aydın | 1,941 | 2 | 33,547 | 4,696,580 | 70 | 21 |
| Şanlıurfa | 1,834 | 2 | 13,807 | 2,347,190 | 64 | 15 |
| Samsun | 1,764 | 2 | 19,898 | 2,586,740 | 62 | 17 |
| Diyarbakir | 1,627 | 2 | 15,509 | 2,465,931 | 58 | no data |
| Manisa | 1,534 | 2 | 19,194 | 2,399,250 | 67 | 15 |
| Muğla | 1,529 | 2 | 56,823 | 7,443,813 | 89 | 26 |
| Sakarya | 1,426 | 2 | 21,591 | 2,763,648 | 78 | 16 |
| Eskişehir | 1,303 | 1 | 20,580 | 2,551,920 | 79 | 15 |
| Denizli | 1,216 | 1 | 20,518 | 2,769,930 | 58 | 15 |
| Hatay | 973 | 1 | 18,807 | 2,896,278 | 101 | 16 |
| Yalova | 901 | 1 | 22,297 | 2,742,531 | 59 | 16 |
| Çanakkale | 849 | 1 | 27,385 | 2,984,965 | 54 | 15 |
| Elazığ | 760 | 1 | 12,339 | 2,035,935 | 81 | 18 |
| Kahramanmarash | 729 | 1 | 15,863 | 2,633,258 | 73 | 17 |
| Mardin | 699 | 1 | 13,357 | 2,270,690 | 72 | 18 |
| Erzurum | 693 | 1 | 12,057 | 1,941,177 | 94 | 18 |
| Afyonkarahisar | 673 | 1 | 18,514 | 2,314,250 | 78 | 18 |
Conclusions:
Housing in Ankara pays off the fastest (13 years), while in Mugla, it takes the longest (26 years). The average property price is the highest in Mugla, at almost TL 7.5 million and TL 57,000 per square metre.
Properties with an average price of up to TL 15,500 per square metre (up to USD 450) can be found in Kayseri, Şanlıurfa, Diyarbakır, Mardin and Erzurum.
Hatay and Erzurum demonstrated the most significant increase in value, with local residential property prices doubling in Turkish lira price for the year: by 101% and 94%, respectively. The third province, Muğla, lags only slightly behind, with an increase of 89%.
In addition to Muğla, Aydın neighbouring Izmir province remains one of the most expensive locations.
Among the three most prominent cities in Turkey, Ankara took first place in terms of property price dynamics, with 78% annual growth. Housing in Istanbul and Izmir equally appreciated in February, each at 59%.
Purchases on credit
Foreigners can obtain a mortgage in Turkey, but the procedure still needs further development. The programme's development began in February 2024. However, locals are not particularly keen on taking out loans; mortgage transactions for only January–February of this year recorded a 56% decrease.
And it’s no surprise as housing loan rates in banks rose to 42.65% on average in a year. This figure shocks Europeans accustomed to mortgages at the level of 4–5% per year.
For example, if you borrow TL 2.5 million for just 10 years, with a repayment period of 120 months, the monthly payment approaches TL 108,000, equivalent to 6.35 minimum wage. Since 1 January 2024, minimum wages have increased by 49% to TL 17,002.
As per the Turkish Statistical Institute (TUIK), mortgage-backed sales fell simultaneously in 76 provinces. The most significant drop was observed in Ardahan (88.9%), Bitlis (85%) and Bayburt (84%). These are small provinces where the number of mortgage transactions used to be in the dozens per month, but now, it’s only a few.
In larger settlements, the situation is as follows: In Chorum, where 161 mortgage flats were sold in February last year, only 40 were sold for the same month this year. The figure fell from 148 to 68 in Zonguldak, from 122 to 38 in Bolu, from 107 to 39 in Amasya, from 161 to 57 in the large and quite popular province of Çanakkale (Istanbul's neighbour), from 116 to 35 in Edirne (another of Istanbul's neighbours), from 119 to 44 in Giresun, from 142 to 54 in Trabzon, the leader of the Black Sea coast. Even in one of Turkey's wealthiest provinces, Konya, it fell from 364 to 129.
In Istanbul, only 1,683 mortgage lots were sold during the month, compared to 3,167 in February last year. In Ankara, the figure fell from 2,601 to 1,212. Antalya also saw a decline in mortgage transactions by 49.4%; here, only 277 residences were bought on mortgage, compared to 547 in February 2023.
Decrease in prices in dollar equivalent
The Central Bank of the Republic of Turkey specified that in January 2024, housing prices increased by 1.3% in Istanbul, 2.4% in Ankara and 2.8% in Izmir compared to the previous month. However, the decline in housing costs in dollar terms has been ongoing for four months. The average figure per square metre was USD 1,028 for Turkey and USD 1,501 for Istanbul.
Price dynamics over the past year
| Month/year | Average price of 1 m2 in Turkey (in USD) | Average price of 1 m2 in Istanbul (in USD) |
|---|---|---|
| January 2023 | 994.2 | 1,538.8 |
| February 2023 | 1,085.8 | 1,685.6 |
| March 2023 | 1,144.9 | 1,773.5 |
| April 2023 | 1,180.7 | 1,815.1 |
| May 2023 | 1,194.5 | 1,833.1 |
| June 2023 | 1,064.4 | 1,608.9 |
| July 2023 | 1,001.5 | 1,493.7 |
| August 2023 | 1,030.2 | 1,545.5 |
| September 2023 | 1,078.5 | 1,616.7 |
| October 2023 | 1,077.2 | 1,590.1 |
| November 2023 | 1,057.7 | 1,555.9 |
| December 2023 | 1,048.3 | 1,522.5 |
| January 2024 | 1,028.2 | 1,501.6 |
(periods of price reduction are marked in bold)
Cities to pay attention to
First is Istanbul, which has consistently been the leader in sales among foreign buyers as well. The "resort capital", Antalya, follows closely as the second invariable leader, with Alanya (a section of Antalya province) being the most sought-after by Europeans.
Ankara stands out as the third particularly noteworthy city, with Izmir coming in as the fourth.
The investment popularity of Ankara in terms of buying a home has continued to increase for many months. As seen from the table above, over the past year, property in the Turkish capital has risen by 78% in lira price and the payback period of properties is the shortest, reaching only 13 years.
In February, 8,300 units were sold in Ankara, 65 more residences than in February 2023. The capital has become a key destination for internal migration since the massive earthquake a year ago and its appeal will continue to grow. Prices are expected to fall slightly in the spring following the recently completed elections. Since Ankara is a "non-resort" city, local prices can fall even deeper, making it a good time to choose a second home.
Here are the districts of Ankara where the most deals were concluded during the month (in alphabetical order):
- Akyurt: 82
- Altyndag: 588
- Beypazary: 56
- Elmadag: 44
- Etimesgut: 895
- Gölbaşı: 419
- Güdül: 36
- Haymana: 20
- Kahramankazan: 68
- Kechioren: 1196
- Kiziljahamamam: 120
- Mamak: 917
- Polatly: 237
- Pursak: 194
- Sinjan: 879
- Enimakhalle: 896
- Chankaya: 1407
- Ciubuk: 173
- Şereflicocşhisar: 40
On the other hand, sales in Izmir dropped by 15.6 % compared to February last year. The situation is expected to improve by summer, with a possible price increase, which has fallen slightly so far. Therefore, consider buying property in this province.
Investors from abroad may be curious to know that Izmir, for the year, "has gone up" by 59% and the payback period of local housing is 16 years. In February, the number of transactions in the segment of new buildings decreased by 3.4% compared to last year, totalling 1,059, which accounts for 25.6% of the total volume. The demand for secondary housing decreased more significantly, by 19.1%, so sellers are now clearly more accommodating in this segment. In February, the share of secondary housing sales in the total volume was three quarters, accounting for 74.4%.
Analysts still have exact data on districts, but only for January. Nonetheless, the February rating of the most sought-after locations is likely similar: Izmir remains stable in this respect. In January 2024, most transactions took place in the Buça district, where 531 housing units found new owners. Following Buca, there were Karsiyaka (407), Torbalı (363), Menemen (339), Konak (268), Karabaglar (250), Bornova (236), Çigli (212), Seferihisar (167) and Bayraklı (162).
It's worth mentioning that citizens of other countries bought only 32 residences in Izmir in January. Therefore, foreign buyers are warmly welcomed here as they pay in cash.
Sales to foreigners for January – February
The volume of transactions with foreign investors in January decreased by 50.5% compared to the same month of the previous year, with 2,061 signed contracts. The share of housing sales to foreigners in the total volume of transactions in January was 2.6 per cent. Antalya took first place by the number of signed contracts, with 747 realised residences, followed by Istanbul (710) and Mersin (211).
In February, transactions with foreigners decreased by 44.9% compared to the same month last year, totalling 1,846 units. The share of such sales in the total volume was precisely 2%. Istanbul ranked first in the number of residences purchased, with 691 units, followed by Antalya (659) and Mersin (151).