Housing prices in Turkey: the dynamics in different regions
House prices in Turkey are showing strong growth. Last month, the cost of real estate rose by 202% year-on-year. On average, a square meter of an apartment costs 11,972 lira, which translates to about $640. In order to buy a residential property in Turkey, you need more than 1.5 million lire or almost 84 thousand dollars. In this case, the return on investment will take about 19 years.
The Istanbul market is very popular among buyers, there is an annual increase in property values recorded at 214%, and the average square meter apartment is sold for $1090. Housing can be purchased for $130,430. In second place on the rise in prices is Ankara, the rise in price was 212% in the capital. A square meter here will cost $500, and the housing can be purchased for $63 260. Izmir follows Ankara, annual increase in the cost of real estate was at 190% in Izmir. For a square meter to pay 830 dollars.
According to statistics, the most expensive provinces were Antalya, Istanbul, and Mersin. In these regions, the increase in real estate market prices was the largest in the country.
The cost of housing in Antalya increased by 244%, a square meter reached $920. The average selling price of an apartment is almost 137 thousand dollars. In Mersin, prices for the year rose by 243%, a square meter sold for $590, and housing will cost 86 thousand dollars.
Despite the rapid growth of the real estate market, the Turkish economy is going through a difficult period. According to official statistics, the inflation rate in the country has reached a record high, its growth was recorded at 80% for the year. However, local real estate continues to be in demand from foreign buyers, which pushes prices up.
There were 227,128 transactions in the secondary market last quarter, an 18% drop from the same period last year. Secondary housing sales account for 69% of the total market volume. At the same time, analysts note a slowdown in both the new-build and the secondary market. The restraining factors, in this case, are changes in the mortgage lending regulation system and the lack of supply. In addition, the intensive growth in apartment and house prices is limiting the purchase of properties for a number of citizens.
Analysts expect that the growth rate will slow down soon after the active increase in prices. In addition, the dynamics will improve with the stabilization of the level of real estate, which is now putting serious pressure on all sectors of the Turkish economy.