Shift in Turkey's Real Estate Market: Opportunities Arise Amidst Declining Demand

In an interesting turn of events, the Turkish real estate market has experienced a notable shift in its trajectory. For the first time in three years, the growth rate of property prices, both in terms of sales and rentals, has started to show signs of deceleration. Some provinces, particularly those with lower demand, even witnessed a slight decrease in property prices.

Here are the key figures:

October Sales: Up by 3.6% compared to September and a remarkable 88% surge compared to the same month last year (although slightly below the previous 100%+ growth rates).

Rentals: An increase of 3.72% by September and a substantial 141.27% growth compared to October 2022. Notably, certain provinces that have not been in high demand experienced noticeable price reductions, including Siirt and Kutahya.

In terms of the observed decline in October prices:

Prices experienced a slight dip, with Istanbul seeing a 1% decrease in sales prices and a 3% decrease in rental prices. Antalya, a province popular among foreigners, recorded the most significant rental price decrease at 6%.

However, in terms of property purchases, some provinces continue to lead in price growth, including Antalya, Adana, Izmir, Istanbul, Kocaeli, and Ankara.

Over the past five years, the Turkish real estate landscape has seen substantial changes:

• Housing for sale has witnessed an impressive 844.58% increase in prices.
• Rental costs have surged by 1006.58%.
• The return on investment in housing has seen a reduction, now standing at 16.5 years. Interestingly, the decrease in demand for housing has led many sellers, particularly in the secondary market, to be more open to negotiations. 

As a result, significant discounts, with some reaching up to 20%, are becoming more prevalent. This shift indicates a potential opportunity for buyers in the evolving Turkish real estate market.

Explore how VelesClub can leverage its expertise to guide you through the intricacies of your real estate investment in Turkey, ensuring a seamless and informed process.