Data: Turkish property market remained stable in January 2023

In 2023, a trend of declining foreign demand for real estate in Turkey compared to the peak levels of 2022 became noticeable. This trend has persisted into the beginning of this year.

Sales of real estate to foreigners decreased by 50.5% compared to the same month of the previous year, totaling 2061 units (2.6% of all sales).

Antalya remains the most popular destination (747 units), followed by Istanbul (710 units) and Mersin (211 units), which has shown the most resilience to the cooling demand. Over the past year, sales there decreased by 57%, whereas in other cities on the list, the decrease was over 90%.

Russian buyers continue to be the main foreign purchasers, acquiring 555 properties in Turkey in January. They were followed by citizens of:

• Iran (208);
• Ukraine (127);
• Iraq and Kazakhstan (99 each);
• Germany (73).

Real estate prices in major markets remain at the level of the previous month but continue to rise compared to the previous year.

• Istanbul: $1331 per square meter in January 2024 compared to $1230 in the same month of 2022;
• Bodrum: $3324 compared to $3053.

Despite the surge in real estate prices last year, some cities in Turkey have seen indicators return to the levels of the previous year, such as Izmir, Mersin, Antalya, Bursa, and others.

The real estate market in Turkey remains stable, although there is a continued decrease in transactions involving foreigners. In January 2024, the total number of transactions decreased by only 17.8% compared to the same month of the previous year. Moreover, 31.5% of transactions are in the new construction segment. This indicates demand in Turkey from end consumers and good liquidity prospects after obtaining citizenship (for high-quality investment properties).

Interestingly, the average exposure time of a property on online listings in Istanbul is around 45 days, meaning properties are sold within 1.5 months. In contrast, in major cities in Russia, the selling period starts from six months.

Furthermore, a significant portion of demand comes from the local population of Turkey, which is increasing by approximately 1-1.5 million annually. In Istanbul, the annual figure reaches approximately 250,000 people.

Pavel Timoshenko Head of Sales Department in Turkey

Cities with the highest sales have been updated:

• Istanbul — 16.7% (13,423 units);
• Ankara — 8.4% (6,709 units);
• Antalya — 6.5% (5,250 units).