The cost of real estate in Turkey in 2022: growing prices and demand
7 minutes read
Prices for Turkish real estate is rising steadily due to a variety of factors, including the rise in prices of supplies and fuel. The demand among foreigners, due to the political stability and security of the country, also affects the cost of objects. Based on the analytics over the past year and the dynamics of price increases, it is reasonable to assume that the decrease in price is not expected. Therefore, those who are planning to invest in housing, while not overpaying in Europe, should think about buying property in Turkey now.
Dynamics of prices for Turkish real estate
According to Endeksa, a Turkish platform engaged in analyzing the value of real estate, in May 2022 property prices in Turkey were 171% higher compared to the same period in 2021. The average cost per m2 was 543 USD, the average price of the object - 73 215 USD. The payback period of investments in housing in the country - 17 years. According to Eurostat, the rise in prices in Turkey is ahead of the dynamics in the EU in more than 6 times.
Rents in this period rose by 152%, and by 233% over the past 4 years. It is worth noting that in comparison with April 2022, it has increased by 25%. The average rental price per m2 for real estate in Turkey was 2.7 USD. At the same time, the average rental price of the object per month - 298 USD. The most intense growth in sales and rents is noted in Antalya.
Price growth over the past year, top 5 cities
The reason property costs are going up
The main reasons for the increase in property values in Turkey are the following:
- Increase in construction costs
On average, as of March 2022, new construction costs have risen 101.57% over the past year. This is due to the rising cost of materials as their production decreased due to the pandemic.
- The rise in the price of land
The most prestigious neighborhoods in Izmir, Antalya, Istanbul and other major cities are already developed. There is less and less land available for construction and it is located in more remote regions. Therefore, it is more expensive to build in cities and places where there are all the conditions for living.
- Rising fuel prices
Construction requires the cost of transporting materials, especially when delivered from other countries. Against the backdrop of rising oil prices, developers are forced to spend more money.
- The rising cost of licenses
As in many countries, Turkey's national currency is facing inflation. Everything is getting more expensive, including the processing of building permits.
- Increased demand
The country is becoming more attractive to foreign investors, making real estate in Turkey more and more expensive.
Overview of the strongest price increases
The top 5 cities in Turkey with the highest real estate prices as of May 2022 are listed below.
The cost of real estate in Turkey
|Region||Average cost per m2, USD||Average property cost, USD||Annual price growth, May 2021-2022|
|Antalya||773||100 523||210,27 %|
|Istanbul||914||109 590||209,62 %|
|Mersin||458||68 698||194,27 %|
|Balikesir||622||80 803||179,96 %|
|Tekirdag||391||54 777||179,02 %|
Стоимость аренды недвижимости в Турции
|Region||Average cost of rent per m2, USD||Average rental cost of the property, USD||Annual price growth, May 2021-2022|
Will real estate values continue to rise in 2022-2023
It can be assumed that in the next year property prices in Turkey will steadily increase for several reasons:
- increase in population - foreigners, tired of the pandemic and political instability in the CIS countries, are increasingly turning their attention to the purchase of housing in a comfortable and safe Turkey;
- increase in the cost of building materials - over the last year the average price increase was 57.25% and there are no prospects for a decrease;
- the growth of the economy and the geopolitical influence of the state, in particular due to the construction of the canal "Istanbul";
- opportunities for foreigners - the ease of obtaining a residence permit and citizenship by making investments, social guarantees and ample opportunities for doing business.
Is it worth buying property in Turkey now
Given the current situation on the Turkish real estate market and analytics over the past year, it is safe to say that it is worth buying property in this country. Firstly, the prices are steadily rising and there is no sign of them going down. Secondly, the prices are still much lower than in Europe, despite the fact that the Turkish properties are becoming more expensive 6 times faster. For example, in Germany the average price per m2 is 6 143 USD, in Italy - 3 285 USD, in Greece - about 1 900 USD, and in Montenegro - about 1 500 USD.
Thirdly, Turkey is an economically developed and stable country in which you can get a residence permit for the purchase of any property, as well as citizenship, if the property is worth 400,000 USD. Therefore, those who are planning to buy a Turkish property, do not put off the purchase until the prices rise several times. Learn more about current offers in a large catalog of real estate abroad, where you can find residential complexes, apartments and villas at various price ranges.
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