An overview of Turkish real estate prices and how supply and demand are affecting them
Real estate and housing prices in Turkey are significantly influenced by supply and demand, which sometimes results in price stability at a certain level and an increase in prices or inflation.
It is noteworthy that the imbalances and shocks caused by demand are the most significant elements determining prices in the real estate sector in Turkey and around the world.
By raising rental values in line with real estate prices, the increase in demand will also boost the chances of making a profit. In this way, investors’ interest in the real estate market grows. In a situation of high demand, the growth in occupancy rates is brought on by the slow response of the housing supply, and rents and prices wind up being the driving force behind the sector’s upward trajectory.
Looking at the data on residential unit sales in the middle of 2019, we see a continued rise in sales to foreigners, and according to data from the Turkish Statistical Institute during the same period, sales of housing units to foreigners increased by 30.5 % to 2018, totaling 2,689 housing units. At that time, there were expectations that residential unit sales would rise in 2019, and this is what transpired from 2019 until now.
It should be highlighted that prices will inevitably climb for real estate in 2021 as a result of rising mortgage rates and rising building costs, which have increased by more than 50%. Demand for houses, however, remained high.
According to the Turkish government’s official statistics, there has been a noticeable increase in demand since the second half of 2021 when compared to the same period in 2020. This means that there has been a demand increase of at least 55% between last year and the year before, which will ultimately increase prices. According to the theory of supply and demand at the moment and predictions for real estate in 2022.
A noteworthy aspect in recent years was the continued depreciation of the Turkish lira versus the US dollar and the euro, which prompted an increase in foreign acquisitions of real estate in Turkey and provided investors with a favorable investment opportunity.
The following trends are seen in an overview of the housing market index in Turkey for the year 2022: a significant and steady rise in the residential real estate price index; rising rates of demand for residential real estate across the nation; Russians leading the list of foreign nationalities purchasing residential real estate in Turkey; an increase in the rates of purchasing new apartments across the nation compared to the previous year; and an unexpected increase in the number of foreign buyers of residential real estate.
Residential real estate trends and motivations are influenced by several factors, and they change in response to those influences that alter people’s or groups’ purchasing patterns. For instance, the residential real estate market in Turkey during the global crisis of the Corona pandemic showed that people tended to purchase independent homes and vacation homes to maintain a healthy and clean environment. Far from areas where diseases and epidemics are prevalent.
Despite all of this, when compared to other European nations, Turkey’s real estate costs are still thought to be quite affordable given the great quality of living that the nation has to offer. In addition, Turkey is regarded as a place where it is affordable to both buy real estate and live a long life.
Here, it must be noted that if your goal is to obtain Turkish citizenship, then Turkish citizenship, even for $400k, is still an unrivaled opportunity for making a successful real estate investment, and if your goal is residential, then purchasing real estate today is preferable to doing so tomorrow because addressing the problem of controlling global inflation is a priority.
If your goal is to invest, you can divide your investment plan on a specific timetable that allows you to improve your investment, and you will thus remain profitable in the medium and long term. For example, real estate prices have increased significantly over the past few years, and we only anticipate more growth in those prices as well as a weakening of the US dollar in the years to come.
It should be noted that numerous factors influence real estate prices in Turkey generally and in some Turkish cities, particularly “Yalova,” including the geographic location and the real estate in the city and the building itself, the type of real estate (residential, commercial, etc.), and the design of house’s architecture, the caliber of the cladding and finishing materials, the services and income that are offered, and the age of the property
Here we note that all these factors are enjoyed by the residential complexes in “Yalova“, including the complexes of the “OmranTRK” company, which is concerned with real estate development and providing all the necessary advisory services of interest to the investor and everyone who wishes to own a property in Turkey, whether for residence or obtaining Turkish citizenship.