A record rise in homes sales in Turkey

Created: 2022-06-29
Last Updated: 2024-05-06
Views: 923

Content Index

Most popular cities for home sales in Turkey:
Turkish lira floundering:
Building materials price rise
Rental price rise:
Supply to Demand Ratio:
Russo-Ukrainian War:

The increasing demand for real estate in Turkey in general and in Istanbul in particular has led to a rise in real estate prices, despite the depreciation of the Turkish lira against the dollar and other factors that some may see as negative, such as global inflation and the war between Russia and Ukraine, but the real estate investor realizes that the most investment opportunities Profitability is formed when investment demand decreases due to concerns unrelated to real estate investing.
Through the following article, the editorial team at Ramzy Real Estate will share with you some information related to home sales in Turkey.
We wish you an enjoyable read.

Most popular cities for home sales in Turkey:

Istanbul, Turkey's most populous city, captured the largest share with 22,148 units, registering an increase of 18%. It was followed by the capital Ankara with 11,497 homes sold and Izmir Province with 7,159 sales.
Russian citizens topped the list in June with 1,275 homes out of 1,152 last month. Iranians and Iraqis followed suit with 736 and 617 homes, respectively. According to the data, Russians and Ukrainians accounted for more than 25% of sales to foreigners. Many real estate companies say wealthy Russians are pouring money into real estate in Turkey, seeking financial sanctuary in the wake of the Russo-Ukrainian war and stifling Western sanctions.
It is not possible to correctly predict the future of real estate prices in Turkey in general and in Istanbul in particular without knowing the factors that may have contributed to this rise, and through which we can anticipate the progress of the real estate price chart.

Turkish lira floundering:

Increasing the price of residential real estate practically on the basis of the Turkish lira does not change its price significantly if the calculation is made in relation to foreign currencies such as the dollar.
The Turkish investor is aware of the change in the value of the Turkish lira against the dollar, but his investment plan depends mostly on the Turkish lira, and therefore when the value of the Turkish lira halves within a short period, the local market will not increase real estate prices by 100% immediately, this rise is definitely It takes a while, not too long.

Building materials price rise

Although Turkey is an exporter of many materials used in construction, such as kitchens, marble, doors and locks, it imports a large part of the primary building materials such as iron and cement.
By mid-2021, the sharp increase in the price of iron and building materials was about 80% for iron and 25% for other building materials.
The sharp rise in the prices of building materials will not only affect the projects under construction, but also the prices of ready-to-move-in properties, because the developer who sells ready-made properties needs to pay the new prices for building materials to start his new project.
Even resale and used property offers are slowly approaching new property prices due to the high demand for cheap properties and the low demand for expensive properties, which will inevitably lead to a equilibrium in the market over the next few months.

Rental price rise:

Raising real estate prices in order to qualify them to attract a higher rental return is an incorrect equation, but its opposite is true, meaning that the high rental return for any property qualifies it to sell at a higher price.
Turkey in general and Istanbul in particular during the past months have witnessed a sharp rise in rental prices, reaching more than 120% in some areas, and at a rate of 84%, according to government statistics.
This means that most of the properties became eligible within one year to attract twice the rent that they were qualified to achieve in previous years, and in fact there is no value to increase the rent of any property without real demand for these properties at the new price, and this was evident in most areas of Istanbul, which is the presence of tenants Interested in renting these properties, even if it was twice the price of last year.
The rental yield in previous years before the property price hike was roughly equivalent to 4% to 5% on average, now that the rental yield is doubled, it makes sense to double the property price to maintain the same ratio.

Supply to Demand Ratio:

The negative effects of the Corona virus and the economic recession that affected the world greatly affected the movement of establishing new projects, and therefore for Istanbul, the demand became higher than the supply, and this is a reason that certainly leads to a rise in the prices of real estate already offered in the market today.
In addition, the lack of suitable land for construction near important infrastructure increases the demand for suitable land for construction, which in turn leads to a rise in the price of land even before construction begins.

Russo-Ukrainian War:

The recent war between Russia and Ukraine led to a significant increase in oil prices and also prompted investors to go to investment safe havens such as owning real estate rather than opening commercial activities that might stop if the war developed.
But despite the high prices of real estate and homes in Turkey, the demand for them is growing significantly due to promotional campaigns by banks and lower interest rates on housing loans. Moreover, the Turkish government has encouraged foreign investors through the Turkish citizenship program.

In order to see more information and details about the real estate market in Turkey and the percentage of real estate sales and other details, you can visit our website constantly because we are keen to monitor its reality for you first.

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