The most desirable cities and regions of Turkey; a spring rating

Analysts have updated the statistics on the most popular and exclusive locations in Turkey (cities and regions).

Content:

• Istanbul, Ankara, Izmir: faster, higher, stronger
• The most expensive districts
• The most expensive districts: comparison of rates
• Prices and dynamics in the Top-30 of the best selling provinces
• Brief conclusions

Istanbul, Ankara, Izmir: faster, higher, stronger

Consulting companies studied the prices of new buildings, per square meter in the three largest Turkish cities of Istanbul, Izmir, and Ankara.

The spread was hugely diverse. In Istanbul, the price per “square meter” starts at 8,000 Turkish liras (TL) and reaches 200,000 TL. In new buildings of the metropolis, the average tariff reaches 60-70,000 TL per 1 m². If it can be even called average at all because a few years earlier, you could buy a simple apartment for 200,000 TL on the outskirts.

In Ankara, the average range varies from 3,000 TL to 40,000 TL, in Izmir, iit’s5-65,000 TL. IHousingat a price of less than 10,000 TL per 1 m² is most frequently located somewhere on the outskirts.

This is partly explained by the fact that over the past two years, real estate developers have experienced a 300-400% increase in the cost of key construction materials and the expenses for the most important production processes.

Assessing the rising costs, Makbule Yönel Maya, the General Manager of TSKB Gayrimenkul Değerleme, said: “In the past two years, the average cost of housing construction has been between 2,500 TL and 5,000 TL per square meter. When it comes to branded residences, these numbers increase by almost 50%.”

Active demand also increases price growth quite strongly.

The most expensive districts

According to a study by Endeksa.com, Besiktas is the most expensive district in Turkey. It is located on the European side of Istanbul. Now, the average property price is 47,081 TL per 1 m² here. The second place goes to the popular Sariyer with 44,219 TL per 1 m² (as well as in Istanbul), and Cesme with 33,449 TL (Izmir province) in third place. These areas were the top-3 undisputed leaders in housing prices at the end of March 2022.

It should be mentioned that over the past year, three "champions" have risen in price by 175% – Besiktas, 168% – Sariyer, and 134% – Cesme.

Analyzing the collected statistics, Gorkem Ogut, the Founding Partner and the CEO of Endeksa, has explained that the Istanbul areas dominate the list, but “the coastal cities with a high summer house density are also attracting attention.”

The following ddistricts’price per square meter:

• Cesme, with an average price of 33,449 TL per square meter.
• Tenedos, or Bozcaada, the province of Canakkale (not only housing, but the land also grows rapidly in prices here). Prices start at 26,381 TL.
• Bodrum, the province of Muğla. The city is afraid of an overload of people this summer. The average price is 30,356 TL.
• Kas is a resort village in Antalya province. Although it is far from the "resort capital", the square meter costs 25,445 TL on average here.

The most expensive districts: comparison of rates

A summary:

• Finding a satisfactory house worth less than 2,000,000 TL in the most sought-after areas throughout Turkey will be a challenge.
• The average cost per housing unit exceeds 4,000,000 TL in three different districts in Turkey. For example, this is twice as expensive as in Adalar, or one and a half times more expensive than in Bodrum.
• The fastest return on investments is in Bodrum (15 years), and Cesme and Adalar (currently 16 years each). The slowest ROI is in Beykoz, a district in Istanbul (38 years).

Prices and dynamics in the Top-30 of the best selling provinces

By the end of April 2022, Endeksa, a predictive real estate data analytics, and insights platform published a detailed report, updating information about property prices in different provinces.

Following the results of March, in Turkey, the average cost of a housing unit amounted to almost a million liras. To be more precise, it reached 998,325 TL. The average sale price per 1 m² of residential property was 7,395 TL, and the average period of return on investments is currently 19 years.

In March, Istanbul had the highest share of home sales, with 23,974 transactions, or 18% of the total sales in the country. Another 9% and 6% occurred in Ankara and Izmir, respectively.

According to information for March 31, 2022, in Istanbul, the annual increase in the value of residential real estate reached 147%. The average price per 1 m² is 12,102 TL, and the average cost of a housing unit is 1,452,240 TL.

In Ankara, the value growth was 116% for the last 12 months. Now, a 1 m² area costs 5,352 TL on average with the average price for one residence being 722,520 TL.

In Izmir, the annual increase in value is 119%, the average sale price per 1 m² is 9,448 TL and the average price of a housing unit is 1,228,240 TL.

However, Istanbul, Izmir, and Ankara are not the leaders in terms of housing price growth. Mersin, Aidin, and Antalya showed the most significant increase in value out of the 30 provinces with the maximum number of transactions.

• Mersin has added 158% in the past year. Currently, 1 m² costs 6,172 TL, so the average home will cost 925,800 TL.
• Aydin at 153%, 11,204 TL per 1 m², and 1,680,600 TL for a housing unit, respectively.
• Antalya with 148%, 9,861 TL per 1 m² and 1,232,625 TL for a residential unit, respectively.

Evaluating this information, Gorkem Ogut, the Founding Partner and the CEO of Endeksa, explained: “The growth trend in home sales continues, but its nature is changing. Recently, the second-hand housing market has begun to dominate in total sales. Seven out of every ten units sold in March belonged to the secondary sector. This spring, a rise in mortgage transactions is seen. As for the most expensive provinces, Mersin, Aidin, and Antalya, the expansion is still in progress on various fronts. As expected, the volume of transactions with foreigners also continues to grow. When we take into account the interest in Turkish residential real estate among citizens of the Russian Federation and Ukraine, considering the tense situation between these two countries, there is an increase in property transactions by 7% among Russians and 52% among Ukrainian citizens in comparison with February.

30 provinces with the highest volume of home sales are shown in the table (details are listed in descending order of the number of property transactions):

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*by the end of March 2022.

Brief conclusions:

• Currently, in Turkey, the most expensive real estate per property unit is in Mugla (with a price of about 2,600,000 TL), Aidin (about 1,700,000 TL), and Istanbul (about 1,450,000 TL).
• The average housing price has risen above 1,000,000 TL in the eight provinces of Mugla, Balikesir, Aidin, Tekirdag, Gaziantep, Antalya, Izmir, and Istanbul.
• Canakkale, Adana, and Mersin hardly reached 1,000,000 TL.
• The lowest average residence price is in Elazig (almost 600,000 TL – 598,910 TL).
• Mugla is the undisputed leader in terms of the cost per square meter (18,568 TL), followed by Istanbul (12,102 TL)б and Aidin (11,204 TL).
• The cheapest "square meter" is in Elazig (3523 TL).
• The fastest return on investment for a given period is in Antalya (16 years), Mugla (16 years), Istanbul (17 years), Ankara (17 years), and Tekirdag (17 years). The longest ROI is in Aidin (39 years), and Trabzon (37 years).