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Turkish Properties Surge in Real Value in 2024
The Turkish real estate market has been experiencing an interesting shift through 2024. While the average house prices in Turkey have increased by 26% in the last year, the real values of these properties have decreased by 15%. This curious situation results from the shift in market dynamics, demand, and evolving economic conditions. Experts from Endeksa are confident that the change in property value will positively impact the market. They also add that it is now the best time to invest in Turkish real estate.
This page aims to conduct a real estate market analysis in Turkey to gain insight into current and future market trends.
Why Are Turkish Real Estate Prices Declining in Real Terms?
Multiple factors caused a decline in the prices of the housing market in Turkey. While listing prices have increased, inflation has tempered the real value of these properties, making them more affordable in real terms. Additionally, the real estate market has seen an increase in demand, partly due to a legal change. In July, the law that previously limited property owners from raising annual rental rates by more than 25% was repealed. This shift has encouraged more investors to buy properties to rent.
Regions with the Most Significant Price Changes
Certain regions have experienced sharper real-term declines. For example, Antalya, a popular destination for international investors and tourists, experienced a 20% decrease in real value. Similarly, the decrease in real-term price has been 15% in İstanbul, 14% in Ankara, and 13% in İzmir.
What Do These Changes Mean for the Market?
The fact that property prices fall in Turkey offers attractive opportunities for investors. The current market allows more buyers to enter the real estate market and invest in properties. In addition, experts expect that Turkey will experience a reduction in interest rates in 2025, which will make real estate options more accessible to more crowds. These factors are likely to increase property prices in the long term and bring a higher ROI rate for investors.
How Are Property Sales Affected?
This shift in pricing dynamics has had a noticeable impact on Turkish house sales. According to the residential sales statistics from TÜİK, released in October 2024, property transactions increased by 23% between August and October 2024.
Conclusion
The drop in real values marks the beginning of a significant shift in the Turkish real estate market, creating profitable opportunities for investors. With the effects of lower real values, legal changes, and the anticipated reduction in interest rates, demand for Turkish properties is expected to rise. This situation creates a rewarding potential for real estate investors to access more benefits in the upcoming years.
As TEKCE Real Estate, we have been guiding investors for more than 20 years. If you are curious about the property-buying steps in Turkey, you can take a look at our related page. Also, you can reach out to us anytime for your questions and inquiries.
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Created: 25.11.2024, 17.36Updated: 25.11.2024, 14.49
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