The Turkish Statistics Institute (TUIK) has released information on residential real estate transactions in Turkey for November 2021.
General Statistics
According to the report, sales of Turkish real estate in November 2021 showed unprecedented growth – up by 59.0% compared to the same period in 2020.
In total, 178,814 properties were purchased in that month.
From January to November 2021, a total of 1,265,353 properties were sold in the Republic of Turkey, which is 9.2% lower than from January to October 2020.
In the previous article, we explained the slight decline in sales, which is related to a decrease in domestic market sales, as the Turkish government implemented an unprecedented initiative to lower mortgage rates for Turkish citizens during the pandemic.
How Properties Are Purchased
When buying real estate in Turkey, mortgage funds are actively used by both Turkish citizens and foreigners. It is worth noting that mortgage rates for Turkish citizens are slightly lower than for foreigners.
Mortgage property sales in Turkey in November 2021 were 61% higher compared to November of the previous year, with 39,366 people purchasing property with a mortgage. The share of transactions using mortgage funds in the total volume is 22%.
What is Being Purchased
Traditionally, in November 2021, in Turkey, the majority of residential real estate sales were for secondary housing. The share of sales of new construction housing in the total number of sales was 31%.
Where They Are Buying
In this section of the report, we observe that the overall situation remains stable – the top three favorite Turkish cities continue to be:
- Istanbul – 2,922 sold properties,
- Antalya – 1,917 sold properties,
- and Ankara – 428 sold properties.
We remind you that Ataberk Estate has offices not only in Alanya but also in Antalya and Istanbul. We can offer you many options in Istanbul.
Foreign Buyers
In November, sales of property to foreigners broke the previous record set in September, reaching 7,363 properties. The September record was 6,630 transactions.
From January to November, sales of residential property in Turkey to foreigners increased by 39.4% to 50,735 properties. This figure also set a new record; the previous record was 45,843 properties in 2019.
This figure also became the highest ever recorded – in 11 months, the historical annual record was surpassed. The previous record for sales to foreigners was set in 2019 at 45,483 residential properties.
The top three favorite Turkish cities for foreign buyers are Istanbul, Antalya, and Alanya.
Traditionally, the top buyers are Iranian citizens, followed by Iraqi citizens. In third place are Russians, then Germans, with Kazakhstani citizens rounding out the top five.
See all the data below:
Forecasts
The cost of real estate is influenced by several factors. The decline of the Turkish lira and the direct impact of this factor on real estate prices should not be considered in isolation.
Ataberk Estate conducts analysis and makes forecasts based on the overall economic picture in Turkey, considering other economic factors as well as the region of the property.
Factors affecting real estate prices include demand for property and construction costs. Construction costs, in turn, encompass the cost of land, building materials, and labor.
Overall, there is a slight decrease in sales in the total number of residential real estate transactions, influenced by a general decline in domestic market deals.
In previous articles, we explained the reasons—last year's Turkish government initiative ended, which provided unprecedented support measures for Turkish citizens regarding mortgage interest rates.
Although overall real estate sales in Turkey have slightly decreased compared to 2020 among Turkish citizens, we still observe a positive trend in the growth of transactions (for example, in November 2021, there were 30% more transactions than in October 2021), meaning the number of transactions is increasing each month.
Regarding the demand for Turkish real estate among foreigners, it is worth noting that all indicators are breaking records.
From January to November 2021, real estate sales to foreigners in Turkey increased by 39.4 percent to 50,735 units. This figure has also become a record high, surpassing the previous annual record over the 11-month period.
It is worth noting that most transactions among foreigners occur in Istanbul, Antalya, and Alanya. In these regions, we observe increased demand, which, in turn, stimulates price growth.
Consider Other Factors
The cost of land on the coast has significantly increased (landowners fear underpricing as they observe heightened interest from developers). Additionally, inflation has led to higher labor costs.
Moreover, the cost of construction has risen due to increased prices for building materials (including both imported and locally produced materials such as cement, ceramics, MDF, and metal). Even when adjusted for inflation, the cost of building materials continues to rise.
Property owners in the Antalya province have long been adjusting prices according to the euro, including Turkish owners. Due to inflation and the depreciation of the lira, some property prices have been raised by owners, sometimes by up to 50%.
Summary
The year 2021 was very successful for the construction sector and the real estate market in Turkey. With the increased demand, construction companies are building new properties, and market players are recording a high number of transactions in the market for ready-made properties. Despite the depreciation of the Turkish lira, real estate prices in areas such as Istanbul, Antalya, and Alanya continue to rise.
Despite significant inflation by the end of the year, the Turkish economy shows strong economic growth indicators, with a planned increase in GDP (Gross Domestic Product) of 9% for 2021.
Advice for buyers and investors: Based on the data provided, do not expect a decrease in real estate prices. Considering the increased demand and ongoing price increases, we recommend not delaying your dream of purchasing real estate in Turkey.
As practice has shown, even the pandemic did not affect or reduce real estate prices in Turkey; it only increased investor interest in Turkish real estate.
Friends, do not postpone buying real estate in Turkey. Request a property selection from us, book your preferred options, and welcome to a new life with Ataberk Estate!
