Real estate prices in Turkey

Real estate prices in Turkey

A new report from the Statistical Office of Turkey (TÜIK) reveals a significant increase in the cost of housing in the country. In the last month of 2023, the average cost of houses in Turkey reached the mark of 3 million Turkish lira (approximately $ 100,000), which is 84% more than the previous year. This data is supported by analysis from the real estate valuation company Endeksa.

A significant decrease in home sales was noted in December 2023 - 33% less compared to the same month in 2022. Nevertheless, Istanbul remains the leader in terms of sales with 23,700 units sold, representing 17% of the total. The cost of housing in this metropolis also increased by 73%, reaching 4.2 million lira (about $ 140,000).

Ankara and Izmir follow Istanbul in terms of the number of transactions, with 30% of sales in the three provinces in total. In December, a particularly noticeable increase in prices was recorded in Hatay, Elaziga and Ordu - provinces located in the south-east, east and near the Black Sea, respectively. Hatay, which was affected by the earthquakes on February 6, where more than 13,000 buildings were destroyed, showed a price increase of 124%.

It is also reported that home sales to foreign citizens decreased by 68% compared to December of the previous year. This is due to the Turkish citizenship investment program, which allows foreigners to acquire citizenship when buying real estate worth over $400,000.

A parallel analysis by Sahibinden and BETAM (Center for Economic and Social Research at the University of Bahcesehir) shows a decrease in real house prices over the past six months, adjusted for inflation. The average annual increase in real prices was only 0.2%, with prices falling in Istanbul and Izmir.

The official annual inflation rate in 2023, according to TÜIK, was 64.77%. However, data from the Turkish Inflation Research Group (ENAG) indicates a consumer price index of 127.21%, which highlights the gap between official and independent estimates of the economic situation

A source duvarenglish.com