Turkey Real Estate Market Analysis and Expectations for 2024

Overview of the 2023 Turkish Property Market

A notable rise in property prices has been noticed since early 2023, with an increase of 109%. By August 2023, the average price for a home in Turkey reached about $100,316. This is a sharp increase from the end of summer 2022, when the average was $81,510, and the annual price growth was even more rapid at 203%. This growth was one of the steepest increases ever recorded by Turkey's Central Bank.

Despite higher prices, the housing market in Turkey is expanding. During the first seven months of 2023, there were 1.6 million real estate transactions, of which 675,000 were residential property sales. Additionally, in the same timeframe, 943,000 plots of land, including construction sites, agricultural areas, and office spaces, were sold. 

The market is heavily in favor of sellers, with a high demand from local residents, investors looking to capitalize on the growing market, and expatriates seeking residency or citizenship in Turkey. This demand means that the most attractive properties are sold quickly, leaving little room for negotiation.

Property prices vary significantly across Turkey. In major coastal cities like Istanbul, Antalya, Mersin, real estate is much pricier than in inland locations. Antalya remains the most popular city among expatriates, followed by Istanbul and Mersin. Other favored locations include the city of Izmir and resort provinces on the Aegean coast.

It's important to remember that square meter prices in new developments can be much higher than the regional averages, particularly in luxury complexes.

Turkey's Economic Future and Real Estate Market

The economic outlook for Turkey in 2024 is a complex of challenges and goals. Post-mid-2023, Turkey has shifted to tighter monetary policies, including significant rate hikes, which are expected to decrease domestic demand from the second quarter of 2024, potentially slowing growth.

Despite these, the Turkish government is optimistic, emphasizing budget discipline and sustainable growth foundations. The country saw over 4% GDP growth in 2023, surpassing expectations. However, the early 2023 earthquakes brought significant damage, requiring extensive reconstruction. The housing sector could benefit if housing loan rates, around 40% currently, drop below 30%. 

In summary, Turkey's 2024 economic landscape presents cautious optimism amid challenges. The government's focus on inflation control and economic growth indicates a commitment to long-term stability and growth, balancing the effects of strict monetary policies and external economic factors.

The Impact of Foreign Investors on the Turkish Real Estate Market

In 2023, the Turkish real estate market has significantly grown in foreign investments, attracting over $7 billion. This inflow of capital has been attracted by Turkey's diverse real estate options, ranging from urban apartments to coastal properties. Additionally, the rise in real estate prices, coupled with favorable tax policies on property purchases, has further strengthened the sector's attractiveness to international investors. 

What to Expect in 2024?

The forecast for the Turkish real estate market in 2024 presents a complex and dynamic picture, influenced by a range of factors both domestic and global.

Despite the challenges faced in 2023, including economic headwinds and a major earthquake, the Turkish real estate market is showing signs of resilience and potential for rebound in 2024. The market will likely be shaped by various factors including government policies, changes in interest rates, inflation, population growth, and the trends of foreign investors. 

These factors, combined with the country's strategic location and increasing interest from international investors, make the market dynamic but also subject to risks. Investors are advised to keep a close eye on macroeconomic factors, market trends, and regional developments, particularly in key cities like Istanbul, Antalya, Bodrum, and Mersin.

Will Property Prices Drop in Turkey?

The real estate market in Turkey is expected to see continued price growth in 2024, particularly in popular areas such as Mersin, Antalya, Alanya, and Istanbul. This increase is driven by new developments in urban infrastructure and industrial facilities. Attracted by the potential returns, foreign investors are showing a keen interest in investing in these high-demand housing markets. Experts agree that a decline in real estate prices is not anticipated due to the high costs of land and construction, which remain unaffected by inflation and the scarcity of available land for housing development. Additionally, the shift in consumer preferences towards high-quality and safe housing is leading to increased costs for construction companies.

How to Make Profits from Real Estate Investment in Turkey?

In 2024, buying property in Turkey is still attractive for its potential profitability in both new and existing housing markets. Investing in new developments at an early stage can be particularly rewarding, despite some risks, as the chance of project failures in Turkey is very low. Property values tend to increase after construction, driven by market trends and local infrastructure development.

There are also opportunities to profit from reselling existing properties, especially in prestigious and tourist-friendly areas, as demand increased significantly in 2023. Renting out properties offers a steady source of passive income, especially as property values rise. In Turkey, it can take around 15–20 years to recover rental property investments, but the high demand for rentals makes this a worthwhile venture.

The success of reselling Turkish properties depends on choosing the right location and property condition, with cities like Antalya, Mersin, and Istanbul being particularly profitable.

Explore the TERRA Real Estate ® Experience

Looking to buy property in Turkey in 2024? TERRA Real Estate ^®  is your trusted partner in navigating the market. With a diverse range of properties for sale in Turkey, from cozy apartments to seafront villas, we cater to various investment needs and preferences. Our experienced team is dedicated to making your property-buying journey as smooth as possible, offering personalized service every step of the way. 

Choose TERRA Real Estate ^®  for an investment experience that combines local expertise with a commitment to customer satisfaction. We pride ourselves on our transparent and customer-centric approach, making us the ideal choice for both first-time buyers and seasoned investors. Join us in 2024 and discover the opportunities awaiting you in the dynamic Turkish property market.