Turkey: not obvious, but promising areas for real estate investment

Turkey: not obvious, but promising areas for real estate investment

Turk Estate likes to tell about the resort towns that are most in demand among foreigners. Nevertheless, profitable investments can be made not only in real estate in Turkey by the sea. Today, we will present several not-so-obvious areas that, nevertheless, are able to ensure good profitability. Today, we will showcase several not-so-obvious areas that can still guarantee strong profitability and explain what their appeal is.

A common feature of all the places that we will talk about is that their prices are lower than in the popular Istanbul, Antalya and Alanya. Meanwhile, rental housing in these regions will be in demand all year round.

Content:

Ankara

The capital of the Republic of Turkey undoubtedly deserves special attention. As of 2024, Ankara still holds a significant position in the country's real estate market. This is one of the favourite cities for both local investors and buyers from abroad. The capital will continue to be strong in the housing and commercial real estate sector in the upcoming years, with a focus on commercial properties. There is a significant need for shopping centres and office spaces from companies of all sizes, including branches of international corporations. To better understand the dynamics of the local real estate market, it is necessary to take into account several important factors: demographic changes, economic indicators, government policies and urban transformation projects.

Turkey: not obvious, but promising areas for real estate investment

Housing market

Housing in the capital is rapidly becoming more expensive. The rise in real estate supply drives growth in the youthful population and demand from college students. As a result, new housing projects and properties attract great attention. Regions, such as Çankaya, Yenimahalle, Etimesgut and Çayyolu, are among the most investment-attractive to make a profit and reside here permanently.

Price analysis

The average housing prices in Ankara were about TL 8,000 ($235) per square metre in early 2024 (of course, they could vary significantly from district to district). The rates are higher in the centre of the capital, and the most expensive real estate is located in Çankaya. More affordable options can be found in neighbouring areas such as Sincan and Mamak. However, it is important to mention that housing prices in the city are growing by 15-20% annually.

As of July 15, 2024:

  • The average price per 1 m² is $677;
  • The minimum fixed price per 1 m² is $433;
  • The average area of apartments in Turkey is 130 m²;
  • The average cost per unit of housing is $88,000.

The drop in prices recently has greatly boosted sales in Ankara.

Commercial real estate

As mentioned, Ankara has great potential not only in the housing market, but also in the commercial real estate sector: office buildings, shopping malls and logistics warehouses are in great demand and continue to attract investors. The most promising areas to rent and buy offices are such areas as Çukurambar, Segutezu and Eskişehir Yolu.

The value of renting commercial real estate in 2024 averages about TL 120 ($3.5) per 1 m², while analysts predict that the price of 1 m² when purchasing houses in Turkey may have risen to TL 12,000 ($353) or higher by the end of the year. Of course, the amounts vary depending on the location of office buildings and services (furniture, security, parking spaces, etc.)

As for the urban transformation and new apartments in development projects in Turkey, numerous urban infrastructure plans are being implemented in Ankara as part of a nationwide programme. Construction projects are currently underway in this area. New modern residential complexes, especially located in regions, such as Altındağ and Keçioren, improve the overall quality of life in the city. Moreover, they increase the value of real estate in the capital.

Recommendations for investors

When choosing villas for sale in Turkey, please pay attention to the development potential and infrastructure of this place. The central regions, such as Çankaya, Yenimahalle and Etimesgut, will prove to be the most profitable options.

Turkey: not obvious, but promising areas for real estate investment

Trabzon

It is the most attractive investment destination on the Black Sea coast. Convenient beaches, pristine nature and favourable climate are the area’s major advantages. Although the sea is cooler here and the bathing season is shorter, many local investors choose Trabzon. Moreover, the demand for housing here continues to grow steadily: Trabzon, known as the "pearl of the Black Sea", attracts not only with its natural beauty and historical attractions, but also with its expanding tourist potential and, as a result, the development of infrastructure projects.

Home sales and rental trends

Housing sales in Trabzon in 2024, where the population has reached 850,000, increased by 10% compared to last year, despite a significant decrease in transaction numbers in most provinces across the country. One of the trends is the demand for high-end development projects in Turkey (luxury real estate), especially in the coastal area. The central Ortakhisar district shows the highest indicator for completed transactions.

 

As for the rent, the average rental rate for 2024 increased by 15% until the end of spring, including summer.

The influence of foreign investors

Trabzon has also become an attractive destination for foreign buyers (especially for investors from the Middle East). Yomra and Akçaabat are among the regions most popular with foreigners. According to TUIK, home sales to foreign buyers in Trabzon grew by 20% in 2024.

Construction sector and new projects

The construction sector in Trabzon is developing rapidly. Numerous new residential and commercial projects were implemented in 2024. Luxurious residential buildings and shopping malls are underway in some areas close to the downtown. Most of the new off-plan projects in Turkey attract attention with modern architecture and social opportunities.

Price analysis

A property with a sea view and a central location is one of those with the greatest increase in value. With an average price per square metre of TL 10,000 ($294), Trabzon is still one of the most affordable investment destinations.

Conclusions and forecasts

The Trabzon real estate market will continue to grow. The increase in population, the interest of foreign investors and new construction projects support the sector. Trabzon is expected to become an attractive place for both local and foreign buyers in the coming years and might unlock its investment potential.

To be continued

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