Turkish Properties Show Remarkable Yield for 2024
The real estate market in Türkiye draws a promising picture in terms of value yield. The statistics for 2023 show a severe increase in Turkish property prices, leaving the yearly inflation rate way behind.
Türkiye is not only popular for its captivating nature, deep-rooted history, and joyous lifestyle it offers like a year-long vacation. Surely, Türkiye’s popularity as a holiday destination, offering an affordable sun-soaked escape for Europeans, adds to its appeal.
But the country is also a heaven for real estate investors in the context of diversity, demand, yield, and sustainability. Let alone its geographic position and advanced travel network are quite advantageous for big-budget investors with global connections.
Despite recent inflation that affected every country in the world, Türkiye still boasts one of Europe's most stable economies. The government acts on a balanced economic management plan to safeguard the country’s interests.
With the gap between currency equals gain on, the real estate in Türkiye has become more and more affordable for foreign investors. Foreign buyers are attracted by the competitive advantages of the Turkish Lira against major currencies like the GBP, EURO, and USD. In exchange for their real estate investments in Turkey, investors get to gain remarkable profits thanks to high ROI potential.
Return on Investment (ROI) is a financial metric that shows the profit that is gained on an investment as against its cost. This measure is crucial for real estate investors. It plays an important role in the decision-making process when considering buying real estate abroad, especially if it's for investment purposes.
Türkiye’s Real Estate Market Shows Rapid Increase in Properties
By the close of Q3 2023, Türkiye witnessed a significant annual surge in house prices and rental rates. At the same time, house sales remained at similar levels compared to a year before, according to statistics. The evaluation, based on TURKSTAT's housing sales data, indicates a stable market with no significant shift in sales compared to the previous.
Endeksa's Housing Sector Analysis Report for the 3rd quarter in 2023 revealed that the annual increase in property sales prices countrywide reached 109%. Istanbul, the cultural capital and business hub of the country shares 14% of the house sales made in Q3. In Istanbul, 48,379 units were sold and house prices in Istanbul Turkey soared by 93% in the past year, reaching average house prices in Turkey per square meter of 34,856 TL.
Istanbul is the highest-valued city. The average price of a house in Turkey’s most populous city, Istanbul is 4,123,670 TL. While Istanbul dominates the market, house prices in Ankara Turkey experienced a 126% yield, and Antalya shows a nearly 100% value increase.
When we look at the total property sales, second-hand houses comprise 67% of the market. In Q3, second-hand house sales amounted to 236,856 transactions. Credit sales constituted 12% of total house sales, totaling 39,354 units, reflecting a 37% decrease from the previous quarter and a 32% decline from the same period last year.
In Parallel, Rent Prices Increase
While buying an investment property, annual value gain is not your only option to gain profits from it. By making a smart investment with the right strategy, rental income could also bring remarkable gains. Plus, rental prices can show huge increases over time. In that case, you might double, even triple your annual gains over time.
As of the 2023’s 3rd quarter's conclusion, the annual increase in housing rents in Türkiye reached to 136%. The average rental price per square meter was 125 TL. Along with Istanbul, Türkiye’s best holiday destinations Muğla, and Antalya reported the highest house square meter rental prices, with averages of 181.81 TL, and 150.67 TL per sqm.
ROI Index: Where to Look for Most Lucrative Investment Opportunities?
In Türkiye, Istanbul sits on top of the list when you’re looking for a good place to buy real estate and make money out of it. As a cultural capital and a major business center of the country, Istanbul hosts millions of visitors every year. This creates a major demand for rented houses, both short and long-term.
Plus, the city is a magnificent metropolis, offering respectable yields on property values even in a short period of time. The highest demand for rental properties in Istanbul is for newly built real estate since most of the new projects are adorned with comfort-enhancing features. By choosing well-located high-end projects to invest in, you can easily rent out your new investment home in the blink of an eye.
Then comes Ankara, the official capital of the country. Ankara has always been a populous city. Mostly public officers and government officials are living in Ankara. Other than its formal aspect, the city is also home to many reputable universities. Therefore, students comprise a significant amount of the city’s population.
Antalya and Muğla, on the other hand, are the best options to buy holiday homes. One in the Aegean, the other in the heart of the Mediterranean, and both cities attract thousands of tourists each year.
From vibrant lifestyle to breathtaking nature, lively ambiance to sunny climate, these holiday destinations are in high demand for rental properties.
Plus, both cities show reputable value gain for properties. For example, house prices in Antalya Turkey surpassed last year’s average sales amount by 100% with 32.258 TL as the average price per sqm. The charming Mediterranean city also leads the way when it comes to foreign property sales in the Q3 of 2023 with nearly 16 thousand properties.
Discover Your Options!
Are you looking for real estate for the best investment in Turkey? Each city has its own characteristics and real estate selection when it comes to looking for investment properties. Depending on your goals for investment, you can find the best city, the best neighborhood, and the best project to buy.
By finding a lucrative investment strategy, you will not only be buying a home abroad but also investing in a brighter future. Contact our real estate agents, discuss your expectations, and let’s find you the most promising investment property in Turkey!