The Turkish real estate market is turbulent. However, it is strong and reliable and is also well-known among foreign citizens. What awaits the market in 2024? What are the expectations of buyers and major market players in 2024? You can find the answers to these questions in this article from the Turk.Estate aggregator. Let's find out more about real estate prices and prospects for the development of the country's housing market.
The most popular cities in Turkey
Although Turkey recorded a decrease in the number of transactions among foreign nationals in 2023 compared to 2022 (when the peak with the highest level of demand was reached), there is an increase in the long term. The number of deals in 2023 grew by 158% compared to 2021. The average budget for purchasing real estate was 250,000 euros.
So, home sales to foreigners in January-July decreased by 43.9% compared to the same period last year and amounted to 22,000 properties, with almost the same the figures of January-July 2021, which amounted to about 25,000 housing units. There is an increase in the long term: housing sales to overseas citizens in January-July 2020 were 29.6% less and amounted to 17,000 properties.
According to the Turkish Statistics Agency, real estate sales to foreign nationals in July accounted for 2.6% of all sales in the summer month. On average, the share of foreigners’ purchases of residential Turkish properties in 2022 was 4.5%, and this figure was 3.9% in 2021. Turkey has a robust domestic real estate market — the largest share of purchases has always been made by Turkish citizens. In recent years, foreigners have purchased 2-4% of local properties. By comparison, overseas buyers purchased only 1.5% of local housing units in 2017.
The overall growth in sales of Turkish housing projects is a good sign for investors. Local demand is growing, which guarantees a rapid price increase and ensures the liquidity of the asset. Meanwhile, the share of foreign demand is traditionally small, which is also good for the investor, as it protects the market from overseas economic and political changes.
The most sought-after cities among foreign buyers can be estimated by the number of transactions in January-July 2023:
• Istanbul — 24,953;
• Antalya — 21,860;
• Mersin — 4,316;
• Ankara — 2,687;
• Bursa — 2,002;
• Yalova — 1,817;
• Izmir — 1,322;
• Sakarya — 1,259.
The demand for real estate in Turkey is consistently high
Representatives of the construction industry and real estate experts in Turkey predict that demand from foreigners will remain high in 2024. Their interest is based on an investment component (Turkish properties are becoming more expensive in dollars) and a migration component (there are citizenship and residence permit programs for real estate investments in the country).
In 2024, Turkey plans to complete the construction and put into operation several transport infrastructure projects: high-speed rail lines and a new metro in Istanbul. Thanks to the development, the metropolis attracts more and more residents from abroad: both locals from other countries’ regions and expats from the Middle East, Europe, and the CIS.
For example, Istanbul has changed a lot in 7 years, especially in transport accessibility. The metro is not everywhere, so a 10-15 minute walk from home is an excellent indicator. The opening of the Marmaray skytrain has significantly simplified life by connecting the Asian and European parts of the city.
You can quickly and conveniently take the metro from the city center to the new Istanbul airport (the best option for hot days when you are in traffic jams). Moreover, there is a metro in the Asian part of Istanbul connecting the Çekmeköy district and the coast of the Marmara Sea.
Turkey grants citizenship for real estate investments
The high demand for foreigners is also due to the citizenship by investment program. According to various estimates, 22% to 38% of buyers from abroad desire to obtain Turkish citizenship for real estate investments. To apply for a Turkish passport, an investor can purchase one or more properties with a total cadastral value of $400,000. Meanwhile, there are no restrictions on the type of property: you can buy apartments, houses, commercial spaces, or land plots. Investors receive a residence permit within 60 days after purchasing a property and a passport of a citizen of the Republic of Turkey after 9-12 months.
However, the lower limit for the sale of housing to obtain a residence permit was increased from $75,000 to $200,000 by a decree of the Department of Immigration dated October 16, 2023. For this reason, there were reasons to believe that an increase in the threshold to obtain a residence permit would be followed by an increase in obtaining citizenship by investment, which was set at $400,000. According to the new rules, the lower limit for obtaining a "golden passport" will grow to $600,000 from the beginning of 2024.
You can purchase a good property in Turkey at Turk.Estate
A huge world of Turkish properties directly from well-known developers and agencies is open to you. The Turk.Estate aggregator has carefully selected the best deals at competitive prices in the most profitable places in the country where you will find your dream property in Turkey. All that remains is to go to the site and choose what you like most; qualified specialists will help you with this. They will adequately prepare for the deal and become your best friends and assistants in difficult times. Do not feel down in the dumps – you are on the right track. Welcome to Turkey!