Despite high inflation, Turkey remains an interesting region for property investment. Many buyers are exploring opportunities in this market. By analyzing many portals, including https://decosta.group/projects/country-turkey/city-bodrum/, users can see that property prices have increased over the years for the country as a whole.
Many factors affect this. First of all, it is the increase in demand and opportunities of the region, convenient location, and relatively low cost (despite its regular growth). In the EU countries property is many times more expensive, and Turkey is a great holiday region. Therefore, buying property in the Turkish real estate market can help to increase the income of your family. Let’s take a closer look at the current situation in this market.
General analysis of the Turkish real estate market
For three quarters of the current year, Turkey real estate market showed a growth of more than 11% and is more than 150 billion USD. Even in the Covid period, the demand in the market remained stable. Requests to purchase housing were higher than in any European country. Many property developers are actively looking for sites to build new properties. At the same time, they are looking for locations:
- close to cultural landmarks;
- in the suburbs of major cities;
- on the seashores;
- infamous tourist centers.
In such places, the price of property is many times higher than in other regions. Also, the high competition forces property developers to build budget housing rather than elite properties. The price growth is also influenced by the requirement to use additional materials for the construction of earthquake-resistant houses. Given the recent events in the country, this is particularly important.
The house price index shows that over the last two years, housing prices have risen by almost 32.5 %. At the same time, inflation is fixed at 17.15%. The depreciation of the lira also forces Turkish citizens to invest in real estate rather than in bank deposit programs. At the same time, credit programs were used less by 5%. The total proportion of mortgage lending is only 7% of the amount of loans issued.
Trends in the property market in Turkey
Today the real estate market in Turkey can be distinguished by two main trends. It is about the increase in requests for the purchase of objects from foreigners and the decrease in requests for new buildings. The first trend is associated with amendments to Turkish legislation. Now foreigners will be able to obtain citizenship when buying housing in Turkey and participate in bank loan programs. Due to this, the growth of sales to foreigners is growing annually. The most frequent requests come from citizens of:
- Iraq;
- Iran;
- Russia;
- Afghanistan;
- Germany.
Investments from Chinese citizens have also increased. But they are more likely to buy luxury apartments.
The purchase of housing in new buildings is declining due to high inflation and its cost. Also, the recent earthquake has affected the mood of citizens. Because of this, many people prefer to buy inexpensive housing. The average sales volume in new buildings decreased by 22% compared to the figures for 2021. This has led to a decrease in mortgage lending requests, which is also hurting customers.
Conclusion
Despite not having the most favorable developments this year, demand for property in Turkey continues to grow. Property purchases on the coast and near major cities remain a priority. Most clients pay attention to secondary housing, but there are also inquiries about new buildings.
Our experts have prepared this Turkey real estate market outlook for you so that you can see the correctness of such investments. Our team is ready to accompany you at all stages of the transaction. We will help you to find a place to live under your budget, see it, and arrange a meeting with the seller. With our help, buying a home in Turkey will turn into a pleasant experience. Such investments will quickly pay off and turn into a source of permanent income for you.
On our website, you can find the approximate cost of properties in all Turkish cities. For preliminary consultation contact our specialists in any convenient way for you.