The Republic of Turkey is located in a highly privileged and strategic position that has led to rapid development in all sectors of the economy and an overall increase in demand for property from abroad. Many buyers, when acquiring real estate in Turkey, are looking for a few main purposes:
- relocation for a permanent residence;
- fast-tracking a second passport for investment;
- profitable investment;
- starting a business.
The Turkish construction sector and real estate market are developing very dynamically in comparison with other countries. Friendly legislation for attracting foreign buyers and a flexible and clear sales process are the benefits that are working in favor of the market of real estate in Turkey. It also has a wide range of possibilities: from cheap small flats in the resorts, to luxurious and exclusive villas in the secondary market and from real estate developers.
Based on the latest updates, we can see a rising trend in property prices in popular resort cities and metropolitan areas such as Istanbul, Antalya, Alanya, Izmir and Ankara. Generally, there has certainly been an increase in the national average price of flats and houses. The same tendency has been noticed in the rental of residential and commercial properties.
All of these indicators suggest that Turkey has great potential as a country of interest in real estate investment.
Real estate market in Turkey in 2021-2022
Positive development tendencies are predicted for the real estate market in Turkey in 2022, as well as a continuing growth of property prices. These projections are supported by the year 2021 (nearby1.5 million flats, villas and houses have been bought), where demand for housing increased significantly. Certainly, the great number of these sales was mainly achieved due to domestic buyers (of the total number of deals, the number of sales to foreigners was approximately 8%).
The considerable price increase did not influence the demand of local and foreign buyers. The major cities and provinces that have sold the most properties to foreigners are the resorts of Alanya, Antalya and their districts, as well as the metropolitan city of Istanbul. According to analysts, this situation will not change in 2022.
The agencies of real estate in Turkey have noted: an opportunity for many foreigners to get a residence permit and a second citizenship for an investment is the real purpose of buying a home. For that reason, as soon as suitable conditions are in place, the market demand for Turkish apartments is probably not going to fall.
How the foreign buyer’s attitudes have changed in 2022
When it comes to deciding where to buy a property from abroad and move to a permanent residence, Turkey has several important benefits over other European countries. The first is that it is easy to get a residence permit when you buy a flat here. The second is that, although the increase in the average price tag, the cost of apartments in Turkey is still lower than in most European resort countries. And finally, in Turkey at a fairly high standard of living in a relatively low cost of quality food, non-food items and utility services.
Over the period of the quarantine restrictions, the Eco-friendly region of the country has become even more popular destinations for foreigners. The fact is that it is always much more pleasant to stay in one’s own apartment by the sea in the fresh air than in the crowded urban areas.
Concerning the buyers’ foreign preferences, property developments condos are still very popular. No wonder, since such projects are indeed a safe investment and an excellent opportunity to maximise your money. Many investors, after experiencing a challenging period of quarantine, have decided to get a property or a villa in Turkey with an indoor area, garden, swimming pool, recreation zone, in which each member of the family has their own personal space. Real estate agency experts have also seen an improvement in the demand for land ownership. This growth trend is predicted to persist in 2022.
Experience of prices on real estate in Turkey
Real estate prices in Turkey will increase by as much as 30% in 2020-2021. However, only in 2020 the price for flats in Antalya and Mugla province has increased by 50%, and in Istanbul – by 25%.
The cost of accommodation in Turkey in 2022 in comparison with the 2021 year has already grown by an estimated average of 40%. Certain properties on the shores of the Mediterranean Sea only six months ago could be bought at a price lower by 20-30% of the current price.
Which additional indicators have an impact on the price of the Turkish real estate?The fundamental reasons for the growth in the cost of Turkish property are an uprising in the cost of building materials and the limited number of properties on the market due to an imbalance between the supply and the demand. It is indirectly affected by the possibility, despite the restrictions, to carry out the deals remotely, growth in the number of people who want a second passport for investment and the Turkey’s success in the touristic sector.
The price of apartments is also influenced by such features as:
- The location. As mentioned above, the price per square metre will vary from city to city. Not surprisingly, a property in a prestigious area will be more expensive than a property on the periphery.
- Infrastructure development level. In general, as the object is closer to the shops, well-equipped beaches, hospitals, banks, schools and other institutions, the more comprehensive internal infrastructure of the complex, so the higher the price tag.
- The characteristics of the property. The cost will vary according to the size, type, layout, floor plans, year of construction, quality of refurbishment and window views.
The latest property prices in Turkey
You are mightly wonder: “How much do the real estate in Turkey cost now?” It is strongly recommended to study the real estate market carefully or take a proffesional help and assistance from an experienced real estate company.
However, the best prices can be found among the “secondary” property in the old housing stock. Such properties in Alanya and Antalya can be purchased starting from 500 euros per square meter. The price of a modern, high-quality housing is around 800-900 euros per square meter. The best way to avoid a lot of expense is to buy a property in an early stage of development.
It is important to plan your financial budget even at the stage when you are looking for an apartment. You have to realize that a good real estate in Turkey will not cost less than 80,000 -95,000 euros, and a villa will cost 200,000 – 300,000 euros and more.
Will prices on real estate in Turkey go up in 2022?
The majority of the international consultancy companies and real estate sales experts believe that the tendency of property price increase which was set in 2020-2021 will also keep on growing in 2022. High demand for properties, stimulated by a difficult period of pandemic crisis, and a price increase for construction materials are the main reasons for the price growth. Moreover, the demand from foreign clients for holiday properties in the country’s resort regions, in which foreigners now want to have a property for recreation and residence, is increasing, but not decreasing.
Although all prices have gone up, the demand for holiday property in Turkey among many foreign investors has stayed very high. As market analysts have predicted a further price growth it is recommended not to delay but start looking for and buying properties now.
If you have questions about the market situation on real estate in Turkey, or you are already looking for a house in Turkey, feel free to contact the real estate agency Tolerance Homes. Our website has a wide range of real estate offers from developers and second hand suppliers. All our professionals will help you to choose the best option and will guide you through all the stages of the sale and the purchase process.