The once-rapid growth in housing prices has seen a slowdown, but an intriguing shift has occurred in the real estate landscape. The duration for a property to pay for itself has significantly shortened, particularly in key cities such as Ankara, Istanbul, Izmir, and Gaziantep.
In Istanbul, the immense demand has led to a noteworthy reduction in the return on investment period, now ranging from 18 to 21 years compared to the 21 to 23 years recorded at the end of 2021.
Izmir has experienced a surge in popularity, resulting in a considerable increase in rental rates. This spike is attributed to individuals who initially sought refuge in the city during the pandemic and decided to make it their permanent residence, impacting the typical payback period by minus 2 years.
Ankara, with its escalating rental rates and a substantial influx of residents due to "internal migration," stands out as one of the provinces least prone to earthquakes. Consequently, the return on investment has notably shortened, ranging from 15 to 18 years.
Gaziantep, despite being severely affected by an earthquake, is witnessing a quicker return on investments. The city, grappling with an actual housing shortage, has contributed to a payback period of 16 to 18 years, compared to 22 to 24 years recorded in 2022.
This shift in the Turkish real estate market presents a compelling opportunity for investors, showcasing the potential for faster returns and profitability in select cities.
