According to statistics, in the last year or two, housing prices in Turkey have been growing noticeably faster than the currency. The average annual increase in the value of real estate was as much as 78% in Antalya, 75% in Istanbul, 56% in Bursa, 55% in Izmir and 50% in Ankara. This has remained so even though Bursa and Ankara are far from the most popular cities among foreigners interested in Turkish housing.
On average, house prices in Turkey have increased by 63% over the past year and 132% over the past 2 years.
If we compare this growth with the profitability of savings in key currencies, then the appreciation of the US dollar in Turkey amounted to 56% in a year and 97% in 2 years. The euro has grown by 50% over the year and 102% over the past 2 years. Taking into account rental income, the annual income from investments in housing averaged 71% across the country and 151% over 2 years.
Content:
- Real estate yields in the main Turkish provinces
- The average price of real estate is approaching 700,000 TL
- Regions with the highest number of sales for the year
- Provinces where real estate prices are growing the fastest
- The most popular areas in Turkey among foreigners
Real estate yields in the main Turkish provinces
Real estate prices in Istanbul have increased by 75% in a year and by 122% in 2. The total income, including the possible profit from renting an apartment, theoretically amounts to 83% for a year and 139% for 2 years.
In Ankara, the annual increase in value is 50% and 101%. over the past 2 years. The total income, including the possible profit from renting an apartment, reaches 55% for the year and 115% for the last 2 years.
In Izmir, the annual growth in the cost of real estate is 55%, the 2-year growth is 115%, and the profitability of investments in real estate is 62% and 130%.
The situation in Bursa is similar to Ankara. The annual rise in the price of real estate is 56% and in 2 years, it is 103%. If possible rental income is included in the calculations, the profitability of investments in housing in Bursa will be 63% over the past 12 months and 118% over 24.
The most impressive indicators are demonstrated by the main resort city in the Republic of Turkey – Antalya. The annual increase in the price of real estate here is 78%, and the 2-year increase is as much as 178%. The total annual income including potential rental income is 86% and for 2 years, it is 197%.
The data are presented more clearly in the comparative tables below:
| Change in price per sq.m. | Total income including rental | |||
|---|---|---|---|---|
| 1 year | 2 years | 1 year | 2 years | |
| Whole of Turkey | 63% | 132% | 71% | 151% |
| Istanbul | 75% | 122% | 83% | 139% |
| Ankara | 50% | 101% | 57% | 118% |
| Izmir | 55% | 115% | 62% | 130% |
| Bursa | 56% | 103% | 63% | 118% |
| Antalya | 78% | 178% | 86% | 197% |
| Currency to currency | 1 year, cost increase | 2 years, cost increase |
|---|---|---|
| USD ($) /TRY (Turkish Lira) | 56% | 97% |
| EUR (Euro) /TRY (Turkish Lira) | 50% | 102% |
| GBP (Pound Sterling) /TRY (Turkish Lira) | 54% | 121% |
The numbers speak for themselves. According to statistics for 2021, although sales were low in some months due to the pandemic, the real estate sector ended the year with a total of 1,491,856 transactions. As it turned out, the need for quality housing is one of the most important human needs in a pandemic. If we compare the annual and 2-year growth in prices for residential real estate, it is obvious that it acquires much more value than this or that foreign currency. Experts believe that Turkish real estate will remain an important investment tool in the coming years.
The average price of real estate is approaching 700,000 TL
The average cost of a residential real estate unit in Turkey, according to the latest estimates, was 678,084 Turkish lira (TL).
In December 2021, 226,503 houses or apartments were sold throughout Turkey. This is +27% compared to the figures of November 2021 and +114% to December 2020.
The categories of housing that have demonstrated the greatest dynamics at the end of 2021 are:
- Secondary housing: in December, sales increased by 22% compared to November 2021 and 117% compared to December 2020. A total of 149,756 transactions were registered.
- Transactions involving mortgages increased by 209% by December 2020, reaching an indicator of 45,260 transactions.
As of the end of December, the average selling price per square meter of housing in Turkey was 5,137 TL.
Regions with the highest number of sales for the year
Istanbul, Ankara and Izmir turned out to be the areas with the largest number of transactions for the purchase and sale of housing in 2021.
The average payback period for housing in the country has decreased to 18 years due to inflation and rapidly rising prices. Earlier, analysts called the figure at 22-23 years on average in Turkey. In some cities and districts, this indicator has decreased to 15, 14 and even 10 years.
Let's compare 3 megacities that consistently turn out to be leaders in terms of housing sales from month to month. These are Istanbul, Izmir and Ankara.
Indicators for 2021 are as follows:
- Istanbul – more than a quarter of a million transactions (276,223) or 19% of the total number of housing transactions for the year;
- Ankara - 144,104 transactions or 10%;
- Izmir - 86,772 transactions or 6%.
Taking into account the increase in the cost of housing for 12 months, the average price per 1 sq.m in Istanbul is 8163 TL, the average cost of a housing unit is 690,000 andTL, the period of return of money invested in housing is 16 years.
The annual increase in housing prices in Izmir is 55% and the average cost of 1 sq.m is 6563 TL.
The average cost of housing, since the Izmir province is considered expensive, does not differ much from the indicators in Istanbul and its surroundings: 658,625 real estate units. The period of return on investment here is approximately 21 years.
In Ankara, the average price per square meter of housing has reached 3069 TL. The average cost of a housing unit is now equal to 379,990 real estate units and the repayment period for investments in apartments and houses is 17 years.
Provinces where real estate prices are growing the fastest
Regarding the dynamics of the increase in housing prices in Turkey, TOP-3 leaders differ from TOP-3 in sales. The provinces with the highest annual increase in value in the last 12 months were Aydin, Antalya and Balikesir.
The annual increase in housing prices in Aydin amounted to 81% in 2021. The average sale price of 1 sq.m. is 7465 TL, the average unit price of residential real estate is 821,607 TL (much higher than even in Istanbul), and the investment return period is now 31 years.
For those interested in housing in resort areas, we remind you that the province of Aydin has a large city, resort and the port of Kusadasi.
The annual price growth in Antalya equaled 78%, the average price per square meter of housing is 6850 real estate units, and the average price of a housing unit is 639,000 units (not much lower than in Istanbul). The payback period of investments in residential real estate is 19 years.
In Antalya province, the key resorts are well known to everyone. This is Antalya itself as well as Alanya, Side, Belek, and Kemer.
In Balykesir, the indicators are plus 77% per year, 5792 TL per 1 sq.m, 552 240 TL per unit of housing and 26 years.
The most popular areas in Turkey among foreigners
The number of transactions with investors from abroad reached 58,576 real estate units in 2021. Most of the residential real estate in Turkey was purchased by citizens of 5 countries: Iran, Iraq, Russia, Afghanistan and Germany.
Taking into account the increase in the dollar and euro exchange rates, as well as the right to obtain citizenship by owning real estate generally grounds and under a simplified procedure for real estate owners, Turkey is very attractive for foreigners from the point of view of investment in real estate. Especially for those who seek to save money; after all, as mentioned above, Turkish housing is getting more expensive faster than the currency.
In 2021, the share of housing sales to foreigners in the total volume of transactions was 4%. This is higher than the figures recorded in previous years (2-3%).
In December, sales of houses to foreigners throughout Turkey increased by 6% compared to November, and immediately by 77% compared to December 2020. In December 2021, the number of housing transactions in which foreigners participated amounted to 7841. In general, in 2021, housing sales in Turkey to residents of other countries increased by 44%.
Foreigners who buy housing in Turkey prefer large cities and districts that stand out for their natural beauty. For example, the coast or forested areas. Among the regions, Istanbul has the highest share in housing sales to foreigners at 45%. Antalya comes after Istanbul with a share of 21%.
The new popular resort of Mersin in the Mersin province where the first «Akkuyu» nuclear power plant in Turkey is being built, is rapidly gaining momentum in terms of sales volumes and the increase in the cost of housing. The project implemented in partnership with the Russian Federation has attracted attention to the region. In Mersin, which was considered a few years earlier a little-known resort with inexpensive real estate, a flood of migrants have poured in.
Thus, the popularity of Mersin is quite recent and the region did not appear in the rating given at the beginning of this article. However, in 2021, the indicators of the real estate market in this province almost equaled those of Antalya and even surpassed Istanbul.
Thus, the annual cost increase in Antalya is 78% (as mentioned above) and in Mersin - only 2% less (76%).
The average cost of a housing unit in the Mersin province has already come close to half a million lira (484,375 units). And, by the way, in the ranking of regions in the whole country (without ranking key cities), investors from abroad are most interested in Mersin; it was in fourth place, surpassing even Bursa and Izmir.
Indicators of the residential real estate market in the 10 most popular provinces among foreigners:
| Total number of transactions for 2021 | Share in total sales | Average price per 1 sq.m (TL) | Average price per real estate unit (TL) | Annual increase in value (%) | Investment return period (in years) | |
|---|---|---|---|---|---|---|
| Istanbul | 26 469 | 45% | 8163 | 690 000 | 74 | 16 |
| Antalya | 12 384 | 21% | 6850 | 639 000 | 78 | 19 |
| Ankara | 3 672 | 6% | 3689 | 379 990 | 50 | 17 |
| Mersin | 2 513 | 4% | 4122 | 484 375 | 76 | 13 |
| Yalova | 1 818 | 3% | 4636 | 449 000 | 61 | 18 |
| Bursa | 1 683 | 3% | 4373 | 450 060 | 55 | 20 |
| Izmir | 1 411 | 2% | 6563 | 658 625 | 55 | 21 |
| Sakarya | 1 262 | 2% | 4032 | 400 560 | 62 | 20 |
| Samsun | 1 157 | 2% | 4226 | 448 840 | 65 | 21 |
| Trabzon | 952 | 2% | 3671 | 475 040 | 50 | 27 |
| Total | 58 576 |
As you can see, out of the TOP-10 regions preferred by foreign investors, the most budget real estate in terms of price per 1 sq.m. can be found in the city of Trabzon.
The lowest price per unit of housing in the TOP-10 is in Ankara. This city is considered a tourist destination and has no access to the sea; the second most inexpensive province in this sense is Sakarya.
It makes sense for investors to look at Mersin where a square meter of housing is still very cheap. Its cost is growing every month; the rise in the price of residential real estate for the year was 78% here and the payback period for apartments is now almost the minimum in all of Turkey at only 13 years. This is several years less than in most other provinces.
The region is becoming more convenient and developing rapidly. Metro construction is planned here and an airport is being built nearby at a rapid pace.