Real Estate Market Dynamics in Turkey: Annual Price Growth and Trends in Major Cities
According to data from the Turkish analytics platform Endeksa, by the end of 2023, there was a 25.6% annual increase in housing prices in Turkey measured in USD. The average cost per square meter of housing across the country rose by 12%, comparing data from July 2023.
In Turkey's major and resort cities, a trend is observed where the rate of real estate price growth significantly exceeds inflation rates and fluctuations in the Lira's value. This rapid growth highlights the real estate market in these cities as a particularly dynamic and influential factor in the context of economic changes.
Forecast for 2024: Real Estate Price Dynamics in Turkey and Market Expectations
What changes can we expect in the realm of real estate prices in 2024? Turkish real estate market experts predict a continuation of the positive price dynamics, basing their forecasts on solid grounds. In light of the anticipated positive development of real estate prices in Turkey in 2024, industry specialists expect steady growth, supported by sufficient factors. These predictions are based on a thorough analysis of current trends and prospects for the country's economic development.
Factors Supporting the Forecast of Rising Real Estate Prices in Turkey in 2024
A key argument supporting this forecast is the rapid increase in construction costs in Turkey. This factor encompasses all aspects: prices for building materials, labor costs, and the cost of all necessary construction permits. The increase in the cost of building materials, especially foreign ones, stimulates a rise in expenses, contributing to the further depreciation of the national currency. Turkey has also seen a rise in gasoline prices, which in turn affects transportation costs. Consequently, developers are forced to compensate for these increased costs, reflected in the rising prices of new constructions.
Rising Cost of Land Parcels in Turkey
The growing cost of land parcels is becoming a noticeable trend, especially in desirable investment regions where available plots for construction are becoming increasingly limited. This year, the volume of land parcel sales even exceeded residential property sales, indicating a rise in land prices and making it an attractive investment.
In major cities and popular resorts in Turkey, fewer available land plots for construction remain, and owners, following market laws, increase the prices of these plots. Developers emphasize that a reduction in housing prices is unlikely without a decrease in the cost of the land itself.
Turkish Real Estate: Prospects for Future Investment
Overall, despite the challenging global economic environment, real estate in Turkey continues to be one of the most stable and reliable investment objects. Purchasing property in a country with a steadily developing economy, such as Turkey, represents a promising investment and secure provision for the future.
According to expert forecasts, projects currently under construction and scheduled to be completed between 2024 and 2026 are expected to cost at least 30-50% more. This increase also impacts secondary market prices, as owners seek to adjust their offerings to the level of new constructions.
In conclusion, investing in Turkish real estate continues to be not only profitable but also a prospective venture. The growing market, stable economic development, and steady demand create favorable conditions for investors, making Turkish real estate an attractive asset with long-term potential for value growth.
