Turkey Real Estate Market News
Prices continue to rise. Perhaps this is now the main theme of the housing market. The average price of a 1+1 apartment in a new project in Alanya has already approached 80.0000 – 130.000 Euros, even in areas like Demirtas and Gazipasa. Recall that 100 new apartments in residences with a pool and other infrastructure, as well as just apartments in “Turkish houses”, include a complete fine finish, a kitchen set, ready-made bathrooms with a shower and all plumbing. You can save on repairs by buying an apartment in Turkey.
Important updates related to obtaining Turkish citizenship by investment. The minimum cadastral value is no longer $250,000, but $400,000 for now. As for the residence permit, in many demanded regions there is now a minimum cadastral value of 75,000 US dollars for obtaining a TAPU residence permit. All other foreign owners can only get a tourist Ikamet.
Prices are rising in developed and prosperous cities around the world. But Turkey continues to show unprecedented growth, as well as unprecedented demand from foreigners. If people want to move somewhere for a good new life, then the first thought of the majority is to live near the sea.
At the end of April, the average annual increase in selling prices per square meter in Turkey was 147%. The country’s middle average price per square meter is $503. The average cost of housing in Turkey in April 2022 reached 1.14 million Turkish liras ($71,000). The average payback period for housing is 18 years.
Prices and the average cost per square meter rose the most in April in such provinces:
- Antalya (+183%), which includes the districts of Alanya, $690 m2
- Istanbul (+173%) $830 m2
- Aidin (+161%) $750
It is worth noting here that in the resorts of Anatlia and Alanya, the buyer receives not only square meters, but also the use of the infrastructure for the residents of the house, at least: a swimming pool, a bathhouse, a sauna, a hammam, a playground, recreation areas, gazebos. Well, the sea, where without it!
With inflation rising nearly 70% in April, Turkey’s house price index (RPPI) rose 110% in March in nominal terms year on year. In real terms (adjusted for inflation), the index rose 29.7% year-on-year and 13.5% month-on-month, the Central Bank of the Republic of Turkey said. And median rent rose 19.7% year-on-year in March, according to the Daily Sabah.
Against the backdrop of the events of recent months, citizens of the Russian Federation in April for the first time became leaders among foreigners in buying a home in Turkey. They purchased 1,152 residential properties. Citizens of Iran purchased 905 apartments, citizens of Iraq – 714, citizens of Kazakhstan – 311, citizens of Ukraine – 263 apartments in April.
In general, in April 2022, home sales in Turkey to foreigners increased by 58.1% compared to April 2021, and the country’s average home sales to foreigners was 4.8%, TurkStat reports.
Rental prices go to infinity
But apparently the tension between tenants and landlords has already reached its peak, and the state decided to pay attention to settling the rise in rental prices.
According to Turkish Justice Minister Bekir Bozdag, work is underway on this issue. “The rent increase cap will be based on the rate of inflation, and it will be a temporary measure,” Bozdag said.
Officials are studying relevant practices in other countries, and the allowable level of increase in rental prices will be acceptable to both parties – both landlords and tenants. President Recep Tayyip Erdogan unveils pending lease plans, then the bill will be presented to parliament, Hurriyet Daily News reports.
State lands will be sold to people for the construction of residential buildings, including in cities such as Istanbul, Ankara and Izmir. “These lands will be allocated only to the poor, those who do not have a home,” said Minister of Environment, Urbanization and Climate Change Murat Kurum.