House prices in Turkey 2022

  • Created At: November 22, 2021
  • Updated At: November 26, 2021
  • Category: Real-Estate investment in Turkey
  • Views: 2067

The Turkish real estate market is clearly one of the distinguished markets in the world. This market remains hot and lively throughout the year, as the region is a tourist and investment pole together. The end of the year is a good time to summarize the results and make predictions for the next year. Turkish real estate experts expect an additional rise in the prices of land, houses and apartments in Turkey and give reasons for this rise.

The impact of the epidemic on the Turkish sector

Emlak Kulisi, a construction and real estate newspaper in Turkey, reported that the impact of the pandemic on the Turkish sector was very serious. However, the unique mortgage campaign launched in the summer of 2020 revived the Turkish construction and real estate sector. According to the Institute of Statistics, in July alone, nearly 230,000 homes and apartments were sold in the country: real estate sales increased by 124 percent compared to July 2019. A significant increase in demand led to a rapid rise in prices: apartments, which before the mortgage campaign cost about 500,000 TL, sold for 750,000 TL.

The gradual increase in mortgage rates was followed by a sharp rise in prices for basic building materials - iron, steel and cement. All this led to a slowdown in the construction and real estate sector in Turkey and to a further increase in apartment prices in 2021.

The cost of iron, which at the beginning of 2020 was 320 TL per ton, was 6000 TL in mid-December. The prices of other building materials are also increasing. This will inevitably affect the cost of new apartments in Turkey and the production costs of contractors. House and apartment prices in Turkey are expected to rise at the beginning of 2022. Turkish contractors have to switch to local building materials and reduce the use of imported materials.

Experts say the rise in steel prices will increase contractors' costs by 10 percent. While in 2020 this price hike was not taken into account in real estate prices, next year it will definitely affect the cost of new apartments in Turkey.

How has the demand for real estate changed in Turkey by 2021?

The coronavirus pandemic has changed the preferences of home buyers in Turkey. Today, the most popular housing options are stand-alone homes with a garden as well as prefabricated homes. On the other hand, the so-called old estates - apartments in buildings over 30 years old - are less in demand (due to the seismic threat). Due to the new demand, construction companies in Turkey are now starting to roll up their sleeves: they are building low-rise villa complexes in picturesque suburbs. The best real estate option in Turkey has become villas in the coastal areas.

How were real estate prices in 2021?

As the construction sector stabilized, mortgage rates began to rise. With the increase in mortgage interest rates in Turkey, there is a slight decrease in residential property sales, but property prices continued to rise as the demand for housing remained high.

The cities with the highest price per square meter are Mugla, Istanbul, Izmir, Çanakkale and Balikesir respectively ( report). The average selling price per square meter in Mugla is 746 euros, and the return period of real estate is 24 years. Istanbul follows Mugla with €703 per square meter, average return on investment for 19 years. The average selling price per square meter in Izmir is 477 euros and the return period is 20 years. The average price across Turkey is set at €399 per square meter, and a 3.8% decrease has been observed since last year.

We will prepare for you the average price for a property of 100 square meters (in Euros):

·    Mugla 74600

·    Istanbul 63205

·    Izmir 47700

·    Aiden 41295

·    Bursa 41150

·    Antalya 35,019

So if you consider Istanbul as an investment point, you will be able to buy an apartment (100 square meters) for 63,00 -70,000 euros; Some bargains can of course be found in its suburbs or new development areas next to Istanbul New Airport for example. According to the Turkish Land Registry and Land Registry, Germans bought the majority of real estate in Istanbul (5,146 properties), among other nationalities, British (789), Greeks (3,656), Austrians (691) and Italians (427).

Of course, this is the average market prices, and you can find cheaper properties as well as luxury properties.

By doing an overview of the prices inside the market, if you find a property worth 70,000 euros in Mugla, you should not be surprised and you can try to look for cheaper options to save your money. But in Aydin, this price will be too high for the property to invest in.

What about rental prices in Turkey?

When investing in a property, it always makes sense to know how much you can earn by renting it out. This is a topic that should be carefully researched when it comes to Turkey. In Turkey, you can choose properties located in holiday resorts or in cities where locals and expats live, work and study. This means that the rental activity will be completely different. For example in Bodrum you will easily rent it in the summer, but you will have problems with renting in the winter. In cities like Istanbul or Ankara, just the opposite, neighborhoods around schools and universities show the highest demand for rent from students and families with children.

Real estate experts expect housing prices to rise as a result of rising demand and the inevitable rise in the costs of construction companies. If vaccination against the Corona virus helps reduce the number of infections until the end of 2021, the Turkish economy will be able to recover and the construction sector can become more active. Even with a further drop in interest rates, market experts predict that at least 120,000 apartments and houses will be sold per month in Turkey in 2021. For those looking for a long-term investment perspective, experts still recommend housing investment. In 2022, real estate prices in Turkey are expected to rise by up to 50 percent: those who are thinking of buying a house or apartment, this is the time to start looking for a suitable property.

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