Home prices in Turkey have increased significantly with the foreign demand for properties in the country. Before now, not too many foreigners gave investing in Turkish properties a chance.
However, these days, there is a huge demand for Turkish properties. However, there seem to be some reasons for the increased demand for Turkish houses in the past years.
Some people say the home prices in Turkey were due to the crashing of the Turkish lira against the dollar. Other people think that home prices in Turkey were brought down due to the $250,000 citizenship offer.
Because of this attractive business offer, many foreigners are rushing to buy a piece of real estate investment in Turkey. These properties can be used as a residential facility or can be rented out to customers looking to live in the upscale and serene neighbourhoods in the country.
In Turkey, many investors and homebuyers purchase villas and holiday homes that they can have access to at any time of the year. Other property investors purchase multiple properties and rent out about 80% of the total properties.
Buying Properties in Turkey: The most preferred locations
One thing that will help you make a profitable real estate property investment is knowing what location to buy your properties.
In Turkey, there is a specific demand when it comes to the location of properties. Many foreigners prefer to buy their properties in the famous Turkish city of Istanbul. In Turkey, of all the real estate investments completed by foreigners, 44.3% of these were done in Istanbul.
Antalya, another well-respected location in Turkey had a total share of 21.2%. Based on reliable reports, approximately 4,192 properties had been sold to foreigners by July 2019.
Compared to the same period in 2020, there was a 46.7% increase in terms of the total properties that were purchased by foreigners. Istanbul had the most sales as it had 1,903 properties sold.
Ankara and Bursa followed closely with a total of 249 and 217 home sales concluded accordingly.
Home prices in Turkey: How much does it cost to buy a house in Turkey?
In Turkey, some cities are more expensive than others. Cities which come with the highest prices per square meter of living space are Balikesir, Canakkale, Izmir, Istanbul, and Mugla.
Mugla has an average property price per square metre of 746 Euros. The total return period of property investment in this location is 24 years.
Istanbul closely follows Mugla with an average square metre going for 703 Euros with an average investment return taking a total of 19 years.
In Izmir, you will get a square metre at an average price of 477 Euros while the return period of the investment stays at 20 years.
Also, considering the average price of a property in Turkey, a square metre will cost about 399 Euros as it got a decrease of 3.8%
How are Foreigners Buying Properties in Turkey
Home prices in Turkey differ based on location. For investors looking at Istanbul to purchase an apartment of 100 square metres, they will have to pay between 63,000 and 70,000 Euros.
In terms of properties, Germans are leading in terms of investments as they have bought a total of 5,146 properties in Istanbul. British investors are next with the greatest number of real estate properties purchased at 789.
The Greeks come third with a total of 365 properties successfully bought. Other investors by nationality are Austrians (691 properties) and (427 properties).
This estimate features the average value of home prices in Turkey. Smart investors who look at the right channels will be able to get good prices that are either cheaper or more luxurious properties for a lower or higher process as the case may be.