The Turkish real estate market has shown some trends over the past years. Analyzed by statistics, the market showed some important insights into consumer behaviour.
These trends are priceless to understanding the key performance indices shaping the Turkish real estate industry. On close inspection, market watchers have been able to unearth some key trends shaping the residential real estate market of the country.
The Turkish Real Estate Industry
The local Turkish real estate market features a competitive landscape with a lot of players looking to take full advantage of the available deals. According to reliable sources, you can easily find desirable properties in several key cities such as Istanbul, Bodrum, Fethiye, Antalya, and Bursa.
In addition, certain campaigns were executed by key market players like banks and property developers. This promotional strategy was able to yield a record 78.4% sales increase for the year 2021.
Real Estate In Istanbul
Based on reliable data from market watchers, Istanbul, the city with the most people in Turkey is still the first option for foreign property buyers. The sales of residential property to foreign nationals in Istanbul had a 25% annual increase. In September 20221, a total of 2995 properties were sold as against 2370 from September 2020.
Property Purchasing By Country
When it comes to nationalities, the country with the most foreign property buyers in Istanbul is Iran. They continue to lead foreign investors from other countries when it comes to property investment in the country. Following Iran is Iraq with its nationals who have bought 7622 properties in Turkey. Other countries are Russia (4494 properties). Afghanistan (2508 properties), and Germans (2062 properties) in 2021.
China continues to steadily increase its investment in the country. Reports indicate that real estate investors from China are seriously considering increasing their investment in the country in the future years. Chinese property investors are known for buying real estate investments such as 5-star managed residential apartments and luxury properties. They also prefer properties that come with excellent facilities and on-site services.
Sales Of New Homes On The Decrease In 2021
In Turkey, there was a decrease in new home sales — this type of property is used to define the first-time sales of a residential property that comes from landownership contracts between buyers and developers. From 2013 to 2021, there were an average of 48,758.25 residential units were sold. This trend peaked at 511,682 residential units in 2019. Then again 2021, an all-time low was recorded 2021 with just about 461 523 residential properties sold.
In Turkey, there was a general sales decline of residential properties — it was 21.4% in 2021 in comparison to a similar period in 2019. However, within the same period, there was a 25.3% increase in mortgage sales. Generally, Turkey respectively recorded normal sales and mortgage-based sales of -16.2% and 26%, respectively, within that same period.
Ease Of Investing In Turkey
When it comes to real estate in Turkey, the country has so many advantages in comparison to other countries in Europe. Many real estate investors and buyers prefer to buy their permanent homes in the country. One reason for this positive trend is due to the fact that houses in the country are generally cheap. In addition, the cost of living in Turkey is reasonably low. Furthermore, you can easily be approved for a residence permit. Even during the covid-19 pandemic, the Mediterranean part of the Turkish coast became very popular among Russian real estate investors. A lot of Russian rich citizens spent their quarantine days in rich Turkish resorts. As soon as the covid restrictions eased, that market grew tremendously.