Turkey used to have low residential real estate prices, but now they have skyrocketed by 456% in the last 2.5 years in Turkish lira. Experts have been comparing between the housing expenses in Turkey, particularly in Istanbul, and the real estate costs in other top global investment spots like European capitals and key Asian regions.
Of course, a noticeable increase in prices in Turkey cannot be overlooked, but it is beneficial to customers, which we will discuss later in this article.
In the meantime, let's have a closer look at the statistics and compare prices for real estate in Turkey with the world’s most popular investment destinations.
Content:
Barcelona, Germany, Madrid and Miami
Buğra Gökçe, President of the Istanbul Planning Agency, said that some districts of Istanbul had overtaken Barcelona in housing prices. Buying houses or apartments in Turkey, for example, in Beykoz, Sarıyer, Beşiktaş, Kadıköy, Bakırköy and Şila, will cost more than buying real estate in the capital of Catalonia. For example, the average price of a house for sale in Bakırköy is TL 10.3 million (€288,000). You can purchase an entire house in Valles Oriental in Barcelona for the same amount.
Meanwhile, Istanbul has surpassed the capital of Catalonia in both prices and rental rates. The average rent for a house in Eyüpsultan is TL 25,513 (€713). You can rent a house in such areas of Barcelona as Anoia, Bages and Moianès for the same amount.
As you know, the average rental rate throughout Istanbul rose to TL 22,535 (€616); the average price per housing unit for sale increased by 888% in lira, while rent prices soared by 1,025% (also in lira) between 2018 and 2024.
Not to be limited to Barcelona, let's give other examples of both rental rates and the value of real estate for sale, which Turk Estate published a little earlier:
- Istanbul has equalled Germany in price per square metre of housing;
- Real estate prices in Antalya have overtaken Madrid and Miami;
- Five days of tourist rentals in Italy are cheaper than a weekend in Antalya;
- Istanbul and Ankara are the world’s fastest-growing cities in rental rates;
- Turkey is rapidly catching up with the United States in real estate price growth.
This scenario benefits landlords, particularly following the elimination of the 25% cap on annual rent hikes (for extended lease agreements). On the other hand, residents are expressing their opposition to numerous tourists, high rental rates for holidaymakers, and expensive prices for everything in Barcelona, which is known as one of the most popular tourist destinations globally. The authorities must preserve the benefits of the metropolitan area's demand for both travellers and residents of the country and other regions. This means that it is extremely important to expand the range of affordable houses in Turkey to reduce rental prices slightly. This can be done by offering social housing and investing in it, adjusting the tax system (such as implementing a higher tax on empty homes), transferring "lojmans" (social housing) from rent to ownership, etc. It is worth encouraging small developers to build more inexpensive apartments in development projects in Turkey.
To potential buyers
What is important for those planning to buy villas in Turkey to know? While real estate prices in the Republic are nearly on par with other popular destinations, particularly in terms of rental rates which are sometimes even higher, local properties are no longer affordable.
However, the Turkish real estate market is more prone to fluctuations. For example, there was a noticeable decrease in prices last autumn and winter. Although the situation is levelling off quickly, you can buy a house with a 10-15% discount from those sellers wanting to get rid of their properties as soon as possible, especially in the secondary real estate market — there are discounts of up to 25%.
Üyesi Arach, a member of the Board of Directors of the Istoç Business Association, and Şenai Arach, a real estate expert, comment on this situation:
“The industry's growth is being hindered by the absence of available funds from purchasers in the market. Although prices for secondary housing have fallen by 20-25%, there is stagnation in this segment. Moreover, one of the reasons is that foreigners who bought housing to obtain citizenship under an accelerated procedure have waited three years and are selling their investment property.”
Here are the statistics of price reductions by district:
- 2+1 apartments in Bahçeşehir cost TL 5.5 million ($164,000). Currently, their price start at about TL 4.5 million ($134,000).
- 2+1 flats priced from TL 3.8 million ($113,500) in Beylikdüzü are sold for about TL 2.8 million ($83,600).
- Apartments advertised for TL 4.8 million ($143,500) in the secondary real estate market in Halkalı are worth about TL 3.8 million ($113,500).
- Flats that were sold for TL 12 million ($360,000) in off-plan projects in Turkey, including new Halkalı sites, can be purchased for TL 10 million ($299,000).
- 2+1 apartments in old houses in Etiler, which cost TL 16 million ($478,000), cost TL 13.5 million ($403,000).
- 2+1 properties in new projects in Etiler, which cost TL 22 million ($657,000), are sold for TL 19 million ($567,500).
- 2+1 residential units in old buildings in Bakırköy cost about TL 5.5 million ($164,000) compared to the previous prices amounting to TL 6.5 million ($194,000).
- If the price for 2+1 apartments in Ataköy was TL 7.5 million, they cost TL 6.25 million ($186,500). If the cost of the 5+1 flat on the seashore in Ataköy was about TL 110 million ($3.3 million), it is TL 85 million ($2.5 million).
- 2+1 properties in old houses in Nişantaşı fell from TL 18 million ($537,500) to TL 15 million ($448,000). 2+1 ones in elite projects in the same area, which cost TL 50 million ($1.5 million), are put up for sale for TL 44 million ($1.3 million).
- If the value of 2+1 residential units in old buildings in Şişli was TL 11 million ($328,500), it is TL 9 million ($269,000).
Therefore, if you are planning to invest in housing, we recommend you taking advantage of the moment and choosing the most suitable property based on your budget and preferences by province and district.