Unprecedented increase in the cost of housing in Turkey. We found the 6 most profitable apartments by the sea
Buying an apartment in Turkey has long become almost a tradition for novice investors. But how to choose a property in a rapidly growing market? How to find just the most profitable option for you and what to focus on? General Manager of the Zera Homes Dogan real estate agency told one of Realting.com’s journalists about the situation on the market and selected the 6 most profitable apartment options now.
Property prices in Turkey are rising. Why?
Everyone is trumpeting about the unprecedented growth in demand for real estate, and this applies not only to the Turkish market, but also to the world at large. In more than 150 cities around the world, the cost of a square meter is growing at a pace that has not been seen for 17 years.
The rise in the cost per square meter in Turkey is due to many factors. Amongst them are the growth in the cost of construction and labor, the instability of the national currency which has been observed recently, as well as the pandemic, which has had its influence in the way ordinary people can invest. We should also mention the heated interest of buyers in real estate on the sea coast, and here Turkey provides the widest choice.
Returning to the «dry» numbers, according to the National Statistics Committee, in December 2021, the construction cost index increased by 17.27% compared to the previous month and increased by 70.63% compared to the same month of the previous year. Just imagine — the cost of construction increased by more than 70% compared to the previous year. Coupled with the increased demand for real estate, of course, the cost of a square meter has also increased. At the same time, according to research by Knight Frank LLP, in the fourth quarter of 2021, the Turkish city of Izmir became the center of the largest increase in real estate prices compared to 150 cities around the world — the increase in the cost of a square meter in Izmir amounted to 34.8%.
Of course, the decrease in mortgage rates for the local population also had an impact on the growth in housing costs. By the way, Turkish citizens most often prefer to purchase housing in the secondary market — the share of sales in the primary market usually does not exceed 35% of the total number of transactions.
Foreigners bought real estate in Turkey very actively last year. Despite the fact that the mortgage interest rate for foreigners is slightly lower than for Turks, the number of foreign buyers in 2021 increased by 39%.
However, in my opinion, not everything is so simple. According to official statistics, 1,491,856 houses were sold in Turkey in 2021 and this is 0.5% less than what was sold in 2020. However, if we take not the whole year but only December for the reporting period, then the upward trend in demand for real estate becomes obvious: in December 2021, 226,503 houses were sold in Turkey, which is 113.7% more than in December 2020.
The most popular cities among buyers were Istanbul (39,026 houses sold), Ankara (21,481 houses sold), Izmir (13,386 houses sold). The provinces with the least sales were Hakkari, Ardahan and Bayburt.
At the same time, it is very difficult to name the specific cost of a square meter of housing in Turkey — it all depends on the city, the location of the complex and the quality of construction. That is why the cost of a square meter can start at €500 and reach €6,000. In such conditions, it is quite difficult for a buyer to navigate and choose the most profitable property — you need to seek help from professionals. The Zera Homes real estate agency has been operating in the real estate market for many years and knows everything about profitable and high-quality real estate in Turkey.
Turkey’s real estate market is not only for foreign investors
Not only foreign investors, but also local residents regularly turn to our real estate agency for help. In Turkish culture, one of the most popular ways to invest has always been the purchase of property. Now, in a growing market, the demand for real estate among the local population has not decreased, but, on the contrary, has increased.
But even local buyers cannot always feel which property to choose intuitively. Therefore, here are some tips for future real estate investors:
- Seek help from professionals in the real estate market who have been working in the market for many years and have earned a good reputation. -Do not forget to check the documents and all permissions the agency has to carry out real estate activities.
- Be wary of companies that promise the lowest prices. This applies to both developers and real estate agencies. Miracles don’t exist: everything that is cheap is usually of poor quality.
- If you have already decided on the property you want to buy, study all available information about the area where it is located. There are situations when the cost of apartments in the same city, literally a couple of kilometers from each other, is very different.
- If possible, try to learn history of your complex from your Real Estate Expert. This information can light up your way which goes to being an investor. The right questions will bring you the right informations.
- It is profitable to buy an apartment or a house in Turkey remotely, too, even without coming to the country. Zera Homes real estate agents possess ample experience such transactions, and all our buyers were satisfied with their choice.
The most profitable apartments in Turkey from Zera Homes
Buying an apartment or a house in Turkey is easy — just ask for help from professionals in their field, like the realtors of the Zera Homes real estate agency. They have made a selection of the most profitable apartments in Turkey for Realting.com readers — choose and leave your application for the property you like.
