The realities of the Turkish real estate market. Sales results for the current year and forecasts for 2022

According to a report from the Turkish Institute of Statistics, the number of properties sold in all cities in Turkey in the first half of 2021 reached approximately one and a half million properties. And home sales across Turkey in July 2021 amounted to about 230,320 properties.

In November 178,814 properties were purchased. From January to November 2021, there were 1,265,353 real estate transactions in Turkey, which is 9.2% less than from January to October 2020.

The largest share in sales falls on apartments, which are the most sold objects. Apartment sales in Turkey ranked first among the best-selling properties in the first seven months of 2021, with 670,000 apartments sold.

Real estate in Turkey. How to purchase?

Turkish citizens, as well as non-Turkish citizens, can get a mortgage loan. While Turks can get mortgages from the state at a lower rate, foreign nationals cannot. But the fact is that real estate sales to non-residents in Turkey in 2021 increased by 43.5%.

The Turkish Statistical Institute published a report on residential property sales: sales of housing to non-residents in the 11th month of 2021 exceeded the previously recorded September record - there were 7363 transactions. The previous figure was 6630.

Historically, the Iranians have become the leaders in acquisitions, with the Iraqis in second place. Bronze went to the Russians, the fourth were the Germans, and the residents of Kazakhstan rounded out the top five.

Primary or second home?

The primary housing market in Turkey is developing rapidly these days, while intercepting a significant part of secondary housing sales, but in 2021, the secondary market will account for over 60% of transactions.

Last year did not please with uniformity of demand for mortgage loans. In July, after the announcement of a campaign to lower interest rates, citizens interested in buying a home bought a record number of homes with mortgage payments. After the increase in rates, most clients of real estate agencies preferred to repurchase housing for the full amount or in interest-free installments.

What to expect in 2022

Turkey requires one million new homes every year - demand is growing. All investments in the housing sector are the most important for the country. Construction projects that have been an on pause for some time are resuming. 2022 is expected to be a golden year for the real estate sector.

As far as the future is concerned, real estate investment in Turkey is safe. Istanbul, in particular, is a strong economic pillar and an important economic capital in the world. There are several reasons that show that the future of investment in the country and in Istanbul is 100% safe and successful.

The value of real estate is influenced by factors such as the demand for real estate and the cost of construction. The cost of construction includes the cost of land, the cost of building materials, and the cost of work.

Summing up

As for the Turkish real estate market, analysts predict that Turkey's new home market prices will gradually increase this year, increasing by 20% in the first half of the year and possibly reaching 50% because of strong sales in the previous year.

The main reason for the increase in the value of real estate is the growth in demand. There is the influence of factors such as the availability of a profitable mortgage system for residents of the country, the absence of bureaucracy during transactions for non-residents and high marginality, which will make it possible to achieve significant profits in a short time. While affordable housing is the majority in Turkey, there are some very expensive properties depending on their features and location. However, this does not mean that residences with sea or nature views in Turkey are expensive. Especially during times of inflation, many premium properties are available, allowing many foreign investors to make purchases without mortgages or bank financing.

Differences in international exchange rates can cause significant savings for foreign buyers. As construction costs rose by over 50% and mortgage interest rates rose, prices automatically rose in 2021. The real estate market remains stable.

In general, taking into account all the indicators that we have talked about, 2022 is expected to be prosperous for the real estate sector.