During the past years, Turkey witnessed an increase in the number of investors wishing to seize opportunities, and foreign citizens looking for stability and safety in an advanced European country, and due to the high demand for real estate units, the real estate market in Turkey presented different types; As a residential, commercial and industrial property, with varying prices and various advantages in all its cities, which led to a huge boom in the real estate market in Turkey.
The demand for Turkey is undoubtedly due to its strong economy, a central strategic location between the continents of Asia and Europe, and government policies encouraging investment that lead to granting the investor Turkish citizenship.
As an investor, of course, you want to make sure that you choose the right opportunity that will double your capital without any loss. That is why, in this article, we will present to you real estate sales for previous years, the housing market predictions 2023, and the factors affecting the decrease or increase in prices in Turkey.
Real estate sales in Turkey during previous years
Housing market predictions 2023 depend on analyzing previous years and looking at them comprehensively to predict a more accurate future. If we look at the number of real estate units sold in Turkey from 2019 to 2022, we will find that their number has not decreased from 1,348,729 units, and according to the Turkish Statistics Authority, the number of units sold from all Turkish provinces during the past years is as follows:
- In 2019, (1,348,729) real estate units were sold.
- In 2020, (1,499,316) real estate units were sold.
- In 2021, (1,491,856) real estate units were sold.
- In 2022, (1,485,622) real estate units were sold.
As for foreigners, their numbers are increasing day by day, desiring to obtain Turkish citizenship, real estate residence, owning a second home, or investing with high ROI. The number of units sold is as follows:
- In 2019, (45,483) real estate units were sold.
- In 2020, (40,812) real estate units were sold.
- In 2021, (58,576) real estate units were sold.
- In 2022, (67,490) real estate units were sold.
Factors affecting real estate prices in Turkey in 2023
To present real estate market expectations logically and accurately, it is necessary to identify the factors affecting real estate prices in Turkey and realize their importance and proportion. The following influencing factors include:
- Government Policies: Government policies, laws, and regulations affect real estate prices. For example: When the tax on real estate was reduced in Turkey, the purchase procedures were facilitated, and tax incentives increased, the number of those wishing to buy and invest in Turkey increased, and thus real estate prices changed.
- Infrastructure: The existence of a well-developed infrastructure (such as public transport lines, paved roads, and planes) facilitate access to real estate and affect real estate prices and demand in specific areas. For example, the vast majority of areas located on the metro line and the bus line in Turkey have higher prices compared to other regions, due to the ease of movement to all neighboring areas quickly and at a low cost.
- Economic situation: The country’s status, economic growth, and its ability to keep pace with global changes and influences all affect the real estate price. As happened in 2020, Turkey has proven its worth in facing the Corona crisis, recording economic growth to reach the 11th rank in the world, after which it witnessed a great turnout from investors and a change in real estate prices.
In addition, the recent earthquake that hit Turkey, and despite its strength and the large losses resulting from it, Turkey was able in a few days to remove the effects of the earthquake, transfer those affected by the earthquake to other cities, provide them with alternative housing, and compensate them within a year, thus proving its ability and speed to solve crises and return to normal.
- Political and security stability: There is no citizen who would prefer to buy a property in a country that does not enjoy political and security stability, because by doing so he would take a great risk with his money and savings, in addition to the fluctuation of the real estate price in this country. Therefore, the Turkish government seeks to maintain political and security stability and to use strict laws to protect all individuals.
- Supply and demand: As with any market, the balance between supply and demand greatly affects real estate prices. When the demand for real estate exceeds the available supply, prices tend to increase. As can be seen, the demand in the Turkish market is constantly increasing.
- Demographic trends: Population growth or changes in household size affect real estate prices. For example, Increased demand for smaller properties due to changes in family size can lead to higher prices for these properties.
- Monthly service expenses: These are the revenues that are imposed in the residential complexes on the services available in them. Such as a swimming pool, sauna, gym, and others. The more services available, the higher the monthly returns.
- Property specifications: Specifications play a central role in determining and changing the price of the property, and include:
- Property type: The type of property, whether it is commercial, industrial, or residential, plays a key role in the price of the property.
- Property area: The price of the property varies based on the area of the property and the number of rooms. Apartment 1 + 1 or studio prices are lower compared to apartment 4 + 1.
- The location of the property and the view: the price of the property in Turkey is affected according to the location of the property, the area, and the view; Smaller states have lower prices compared to major and central states such as Istanbul, and real estate located in tourist areas, the city center, or with a distinctive view, their prices are higher than the rest of the regions.
- The state of the property: the property under construction is lower in price compared to the ready property. The ready-made property has a different price compared to the resale property.
- Interior and exterior finishes: The interior and exterior design and the materials used all affect the price. Real estate with a high-end destination, modern designs, and luxurious decorations, prices are high compared to other real estate.
- Available services: such as transportation lines, educational, health, and recreational centers.
In general, various factors can affect real estate prices in Turkey, and investors or those wishing to buy a property should consider these factors when making a decision.
Will real estate prices rise or fall in Turkey in 2023?
When talking about the housing market predictions 2023 in Turkey, many foreign investors ask, “Will real estate prices in Turkey rise or fall in 2023?” This is undoubtedly in order to take the investment step with confidence or not to take it.
Economic and real estate experts expect that real estate prices in Turkey will continue to rise throughout the year gradually, and this is due to:
- High prices of building materials and costs.
- Increased demand for real estate due to population growth and lack of supply.
- Infrastructure development in all aspects of health, education, and transportation network.
- The huge projects established in it, such as the new Istanbul Airport (the third largest airport in the world).
All this is in favor of the foreign investor, whose return on investment will continuously increase, as happened with the old investors in the Turkish market. In addition to a great benefit for those interested in investing in real estate through installments, as the value of the installments decreased in Turkish lira against the dollar or the euro.
Real estate market forecasts in Turkey in 2023
In the expectations of the real estate market in Turkey for the year 2023, experts and economic analysts predict continued growth and prosperity in the Turkish real estate market, but at a slower pace than in previous years, due to the impact and challenges facing the Turkish economy and the macroeconomy in general.
And because the expectations of the real estate market depend on the analysis of previous years and the current situation, we will find that sales of previous years and returns from investment are all high and attractive to both local and foreign investors.
One of the segments that are expected to witness significant growth in the real estate market in Turkey in 2023 is the rental market. Since many people are unable to purchase real estate, the demand for rental properties is expected to increase, leading to an increase in rental returns for investors.
And for this; The Turkish government was and still is offering many facilities, and incentives to investors, all in order to support the real estate market in Turkey and attract investors.
The real estate market in Turkey has witnessed a huge boom in recent years, due to the country’s strong economy, central location, and government policies that encourage investment. Previous statistics showed the increasing and continuous demand for the real estate market in Turkey, whether from investors, foreigners, or local residents. In general, the outlook for the real estate market in Turkey in 2023 is positive, with continued demand and the possibility of price increases in certain areas.
For a deeper understanding of the Turkish real estate market, we recommended to seek guidance from VAAL Real Estate Company. Our expert advice will provide you with the latest and most precise information before making any decisions regarding property purchase in Turkey.