Property prices in Turkey
According to Endeksa’s property price monitoring in January 2022, the annual price growth in the Turkish real estate market equals 78% in the Turkish liras. REIDIN Data Analytics reported a nominal price increase of 21% in the previous month alone. In February 2022, the average price of residential property in Turkey is 5,579 Turkish liras per square metre (or 378 US dollars at the rate of February 2022), the average cost of one unit is 736,428 Turkish liras (50,000 US dollars), and the average payback period for real estate investment is 19 years.
Following the uptrend of property prices, rental rates in Turkey are also rising. Rent prices in the national currency in January 2022 have increased by 17.21% over the previous month, and by 52.45% over January 2021. In resort locations, such as Alanya, Antalya, Belek, Bodrum, Didim and Fethiye, rental prices have risen by 60% or more.
In major cities, property prices surged more than the US dollar surged against the national currency – the Turkish lira.
In January 2022, real estate prices in the national currency in Turkey had increased by 78% over the year and by 132% over the last two years. Over the same period of time, the US dollar had risen against the Turkish lira by 81% and 128% respectively, while the euro had risen against the lira by 74% and 128%. Thus, the average housing prices nominated in foreign currencies had changed moderately.
- Price dynamics in US dollars: -3% over the year and +4% over two years;
- Price dynamics in euros: +4% over the year and +4% over two years.
However, the growth rate of property prices in Turkey’s major cities vastly exceeds the inflation rate. For example, in Istanbul and Antalya housing prices nominated in US dollars grew by 40% and more. This is due to the recovery of the country’s tourism industry after COVID-19 pandemic, and the growing demand for long-term rentals from digital nomads relocating to resort cities on the Mediterranean coast.
The property market overview in 10 Turkish cities with the largest number of residential property deals demonstrates the following dynamics.
Sales volume in January 2022 | Average price per square meter, in $ | Average property price, in $ | Annual value increase, in $ terms | Payback period from rental income, in years | |
|---|---|---|---|---|---|
Istanbul | 15,110 | 430 | 49,511 | 45% | 16 |
Ankara | 8,255 | 207 | 26,953 | 7% | 17 |
Izmir | 5,486 | 376 | 47,009 | 10% | 21 |
Antalya | 4,295 | 370 | 45,506 | 43% | 19 |
Bursa | 3,734 | 245 | 31,838 | 14% | 20 |
Kocaeli | 2,801 | 226 | 28,256 | 6% | 20 |
Mersin | 2,346 | 221 | 33,155 | 38% | 14 |
Tekirdag | 2,215 | 201 | 27,083 | 26% | 17 |
Aydin | 2,184 | 420 | 60,454 | 54% | 32 |
Balikesir | 1,891 | 327 | 39,212 | 27% | 26 |
Foreign investors are protected from the Turkish lira’s volatility during the deal proceedings because the Turkish legislation allows purchasing property in the country using US dollars, euros, and other foreign currencies, including Russian rubles.
The most promising regions
Istanbul
Istanbul is the leading economic, financial, tourist and cultural centre in the Mediterranean region. The city airport is one of the world’s largest aviation hubs. In January 2022, more than 276,000 residential properties were sold in the Turkish capital, as city planning agency IBB Istanbul reports. Among those properties, 63.8% were bought in the European part of the city, and only 36.2% in the Asian part (Anatolia), where the locals usually prefer to settle.
There is also a growing demand for new housing in Istanbul among global investors. According to the Turkish media outlet Emlakkulisi, every second property deal takes place in the primary market. The new residential buildings grow in price faster as they are more demanded both for short-term and long-term rentals. There is still a shortage of housing in Istanbul, which boosts the growth of prices and rental rates. Rent prices in the city have increased by 30–40% over the year, and in some districts (e.g. Besiktas) the rent has even doubled.
There is an ongoing construction of the Istanbul Canal aimed to become an alternative to the Bosphorus. Local authorities hope that this new transport channel will eventually turn Turkey into a logistical superpower. Since the Canal project has been approved, real estate prices in the neighbouring districts are rising two times faster than the national average.
From $199,000
Completion in: 2025.IV Total of 148 apartments
From $256,000
Completion in: 2024.IV Total of 781 apartments
From $406,000
Built in 2023 Total of 1441 apartments
From $243,000
Completion in: 2026.II Total of 686 apartments
From $636,000
Built in 2024 Total of 1050 apartments
From $181,000
Completion in: 2025.II Total of 689 apartments
From $302,000
Completion in: 2024.II Total of 167 apartments
From $342,000
Built in 2023 Total of 2750 apartments
Canakkale Province
In 2021, the average price of residential land in the Canakkale Province increased by 40% in the national currency, and the price growth is expected to accelerate even more in 2022. The Canakkale’s real estate sector is gaining momentum due to the ongoing large-scale infrastructure projects in the area: in particular, the Canakkale Bridge, which is scheduled to open in 2022.
The construction of a highway and a ring road, encircling Istanbul, Tekirdag, Canakkale and Balikesir, will further improve logistics and give a new incentive to the tourism industry development in the region. Property prices in the Lapseki district vary between 230 and 370 US dollars per square metre, and on the Gallipoli peninsula – between 305 and 407 USD. As a result of these infrastructure improvement initiatives, Canakkale is becoming more and more attractive for investments in development.
The most popular cities in Turkey
The share of foreign purchases in residential property deals in Turkey in January 2022 was 4.7%, according to the Turkish Statistical Institute. In January 2021, this figure was half as much. Below are the most popular cities among foreign buyers based on the number of transactions made in January 2022:
Istanbul – 1 771;
Antalya – 914;
Ankara – 269;
Mersin – 219;
Izmir – 142;
Bursa – 117;
Yalova – 117;
Sakarya – 107;
Samsun – 92;
Trabzon – 69.
From $158,000
Completion in: 2025.IV Total of 406 apartments
From $198,000
Completion in: 2024.III Total of 60 apartments
$547,000
Total area 202 m² 3 bedrooms
From $179,000
Completion in: 2024.III Total of 43 apartments
From $225,000
Yield 20.0% Completion in: 2024.III
From $187,000
Yield 20.0% Completion in: 2024.IV
From $110,000
Built in 2024 Total of 36 apartments
Property prices in Turkey will rise in 2022
Mortgage rate reduction to 1.2% per month, offered to first-time homebuyers and some other groups, boosts the national market. According to the Turkish Statistical Institute, at the end of February 2022, mortgaged housing sales grew by 35.6% compared to the same month last year. Another mortgage rate reduction, this time to 1% or lower, is expected to take place in late 2022 and to give another boost to property sales.
Turkish construction professionals and real estate experts predict high demand for the year 2022. This forecast is associated with the deferred demand accumulated during the COVID-19 pandemic. Foreign homebuyers are also attracted to the Turkish market by the beneficial exchange rate of the national currency. International investors yet again stimulate price growth in large cities and seaside resorts.
In 2022, the Turkish authorities plan to bring into operation a number of transport infrastructure projects, including high-speed railways, new metro lines and the Canakkale bridge. This will result in the continuous rise of property prices.
The most demanded locations, where nearly all available apartments and houses are sold out, will be experiencing extreme price growth due to the temporary lack of supply. This distortion of demand-supply ratio is rooted in the pandemic period, when many development projects were rescheduled.
Rising construction costs are also pushing the prices up. Turkey's construction industry is importing a lot of materials and producer goods. The imported components have also risen in value because of the Turkish lira depreciation and supply chain disruptions during the pandemic. A few construction projects were postponed due to logistics problems. Currently, local developers have restored the operations. The launch of new projects in 2022 will help tackle the supply shortages in some locations.
Turkey grants citizenship for real estate investments
The high demand for property in Turkey among foreigners is also boosted by the government’s intensives. By various estimations, some 22% to 38% of foreign homebuyers are interested in obtaining the Turkish citizenship. To qualify for a Turkish passport an investor should purchase one or more properties with a total cadastral value of 400,000 US dollars.
There are no restrictions posed on the property type in the passport-for-investment programme. One could apply for Turkish citizenship after purchasing an apartment, house, commercial real estate or land plot. The applicants receive a residence permit in 10 working days after the property deal registration, and then, in 6–8 months, the investors get a Turkish passport.
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