Real estate and construction analysts, based on the statistics by the end of 2021, have already said that one of the sectors that will show the greatest growth this year will be the real estate sector. And, as experts have repeatedly warned, residential real estate prices will continue to increase even though in the last 12 months they've already increased by 40% on average across the country.
Trends in buying real estate like which cities, districts, and types of housing (in terms of their characteristics) will be a priority. A short conclusion from recognized market experts is that while cities and districts popular among foreigners will continue to show an increase in indicators, on the coast – where many people preferred buying a house during 2 years of the pandemic – there may be some decline in sales.
It's also expected that the projects built in 2022 will increase the value of individual districts and even entire regions. The nationwide urban transformation project will continue to gain momentum which will affect the housing market.
But, there are some important points that you definitely need to pay attention to when buying a house or apartment.
CONTENT:
- The fastest growing provinces
- Tips for choosing real estate
- Calculation of rental income: buying houses
- Importance of transport accessibility
- How can you fail on incorrect documents?
The fastest growing provinces
According to analysts, cities like Istanbul, Ankara, Aydin, Antalya, Trabzon, Yalova, Bursa, Mugla, Izmir, Mersin, Canakkale will become popular.
As a result of the government's efforts to increase exports and boost industrial production, provinces such as Kocaeli, Bursa, Yalova and Tekirdag, where new organized industrial zones will appear, will also have increasing housing costs in 2022.
This is especially true in Mersin, where housing prices are almost doubling every year as the first Akkuyu nuclear power plant in Turkey is being built here. A lot of people are moving here; underground construction is planned and its own airport will soon appear. Mersin, previously considered a little-known resort with cheap housing, is pushing out many other cities in terms of profitability of investments in the coming months.
In Istanbul in 2022, according to analysts, it's worth taking a closer look at the districts
Beykoz, Chekmekey, Silivri, Basaksehir: the demand for real estate is already growing rapidly.
Areas like Shili, Buyukchekmedje, Agva will also be popular.
If the new underground lines are completed and put into operation in 2022 – according to the plan or even earlier, since its construction has noticeably become faster – housing in areas like Atashehir, Umranie, Halkaly, Kurtkey may also increase in cost.
Near Istanbul, a major role in the «redistribution» of residential property prices will be played by the soon-to-be-opened Canakkale 1915 Bridge- nearby areas are already becoming more expensive. And some of them are quite densely populated. Also, they are considered quite green because they are located in a natural environment. And this characteristic (forests nearby, fresh air) has added value to residential real estate since the beginning of the pandemic. This trend will continue for at least several years.
The exchange rate also plays a significant role. Due to the steady appreciation of the dollar and the euro, the demand from investors from abroad will shift to the central regions due because of growing purchasing power. These are, for example, districts like Besiktas, Kyatkhane, Esenler, Beylikduzu, Esenyurt, Zeytinburnu, and Basaksehir.
Tips for choosing real estate
Be sure to pay attention when choosing an apartment or a house for subsequent purchase.
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Contact a licensed real estate appraisal company and ask them for a full report on a specific housing unit, including about the legal situation.
What is meant: it is necessary to carefully study what kind of property, what is its «biography», if we are talking about the analysis of the land share of real estate in old buildings, and even more so about the possible prospects of both the site and the building, if they geographically fall under the urban transformation program.
The same applies to situations where in the future it's possible to demolish a building to construct a new one in its place.
- Citizens who plan to invest in housing – especially second-hand and in areas with an increased risk of earthquakes - must get the opinion from the right institutions or organizations who can assess the seismic risk. And don't just ask over the phone but get a document with an official answer in your hands.
- It is worth clarifying the prospects for making a profit from housing. For example, find out if there are plans to build a subway or lay a light railway line (if there aren't any) or if it's close to public institutions like schools, colleges, universities, and The general condition of the land in this area is also important; what industrial enterprises are going to be built here (if they are going to)?
- The most important thing when buying real estate, experts say, is that the building is guaranteed to be durable and that all building codes are observed during You can check this by getting help from a professional.
Calculation of rental income: buying houses
Realtors strongly advise: if you have the opportunity to buy not an apartment, but a house, buy a house. Or, buy a plot of land and build a detached residence on it. The volume of available housing on the market is steadily dropping and if developers are gradually building and renting out new apartment buildings, then the situation with houses is completely different. It's difficult to find vacant houses for rent now. Especially in Istanbul and the surrounding area or home that have a view of the sea (Bosphorus, etc.)
Buying apartments will also make sense as a "shortage crisis" has developed in the rental housing market. Rental prices are rising by tens of percent per year (in Istanbul, for example, this figure for 12 months was as much as 70%). The official rental increase rate according to December information is only 17.71%. This is higher than in previous months but not 50-70%.
So, there are very few people willing to move out because new housing for rent – even similar in characteristics – will cost much more.
For those who are looking for an apartment now, it's much more difficult to find something acceptable for themselves, not to mention spacious apartments in high-quality new buildings.
Importance of transport accessibility
All other things being equal, it's still better (if you don't buy an apartment in the city center for personal reasons) to give preference to areas where the underground hasn't yet been extended, because when the next branch line is laid, the apartment will noticeably increase in price in a matter of days after the station opens nearby.
The same applies to social infrastructure – public hospitals, schools and universities.
For example, the former residential and factory districts on the periphery have great prospects in this sense. So, the surroundings of the new airport will be actively developed, where the long-awaited underground line has been laid and is already being tested: it will work very soon.
The head of Era Real Estate Türkiye, Alpan Manas, also clarified that after the pandemic, areas for a comfortable stay away from megacities for a long time will retain a high level of popularity: Bodrum, Datcha, Izmir and some other areas of the Aegean coast.
As for Istanbul, in 2022, experts assure, it is worth waiting for new and very large–scale financial injections into Omerli-Syrapynar, Beykoz and Shile districts, as well as Riva (on the Asian side). On the European side, it makes sense for investors to take a closer look at the Saryer district, as well as the areas along Hector-Kemerburgaz route.
How can you fail on incorrect documents?
Having decided on the city, district, quarter and apartment, having made sure of the earthquake resistance and quality of the construction of the building, as well as convenient transport accessibility or prospects for this (as we have already written about in one of the sections of this article above), carefully double-check the documents.
For example:
- if renters live in the purchased apartment (which is not always possible to know, especially if the purchase is made remotely), they can defend through the court the right to stay there until the end of the year specified in the contract;
- be sure to check for not only TAPU, but also iskan. Sometimes you can get an iskan later but sometimes it's not possible. And unscrupulous realtors or some developers are trying their best to hide this. So, the best thing that can wait for an apartment owner without claim is increased utility bills.
- If the apartment is purchased with a bank loan, then pay attention to whether it's suitable to take a loan as this isn't always the «default».
- Check if there are any other circumstances preventing the sale (easement, etc.).
- Make sure that there are no «pitfalls» in the document plan and land plot where the property is. Also, find out urban planning for at least the coming years. Suddenly, in 3 years, a highway is planned to be laid through your site.
- Don't forget to buy your DASK policy – earthquake and natural disaster insurance.
