In Turkey, the return on investment in residential real estate has decreased
Endeksa platform conducted a study of the real estate market in Turkey. According to the results, the return on investment in housing is an average of 19 years.
According to the Institute of Statistics, 134,170 housing units were sold in the country last month. During this period, the annual increase in the value of houses and apartments was 127%, and the price per square meter is on average about $500. Buying a home would cost about $67,620. At this cost, the return on investment would be about 19 years.
Compared to the previous period, last month’s sales exceeded 37%. The biggest demand for residential real estate is shown in Istanbul. Here 23,974 houses and apartments were sold, 18% more than last month. In the second place in popularity – housing in Ankara, the growth was recorded at 9%, up to 12,609 units. Next comes Izmir, where 8,051 houses and apartments were sold, which is 6% more than last year’s figures.
Over the year, real estate prices in Istanbul have increased by 147%, the city has become the leader in terms of property values. The appreciation in Izmir is 119%, and in Ankara – 116%. If we consider the dynamics of prices in 30 regions, the first position is taken by Mersin, where the cost of residential real estate rose by 158%. In Aydın there is an increase in prices at 153%, and in Antalya – 148%.
According to Endeksa experts, last month the cost of housing in the Turkish market reached a maximum of the last 10 years. They note that the trends of increasing sales will continue in the future, but there is a change in the requirements for the quality of objects. Increasingly popular are options in the secondary market, 70% of the housing sold last month is in this sector. There is a growing demand for Turkish apartments and houses among foreign citizens. The Middle East and Eastern Europe are actively investing in local housing.
Last month the sale of real estate to foreigners increased by 31%. Non-residents purchased 5,567 properties. As well as among the locals, accommodation in Istanbul is popular among foreigners. Foreigners have bought 2,245 properties in the city. In second place is the Antalya market, which is one of the major Turkish resorts – 1434 units were sold. Next comes Ankara, where the owners of 347 housing units have become foreigners. Leaders among non-residents were buyers from Iran and Iraq.
Last quarter of this year, the volume of residential property sales in the country amounted to 320,063 units. This is 21.7% more than during the same period last year. Within 3 months, demand from foreigners has increased by more than 45%.