As we enter the year 2023, the indicators of changes in real estate prices in Turkey have become largely clear, due to what we witnessed during the years 2022 and 2021, which brought about radical changes in the world of real estate in Turkey, especially after the Corona pandemic, which led to the rise and fall in the value of many... Public sectors all over the world.
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- These articles, which we delve into and present to you based on the presence of the field team in the real estate market for many years, and through great interaction with the market, valuable experiences, and future outlook, we put in your hands a summary of what is best for you on the real estate level in general, and not just choosing apartments for sale in Turkey . We are always keen to give a comprehensive and integrated vision to our dear customers. Cities, regions, projects, and much, much more data.
- Damas Turk Real Estate In this article today, and based on the title, we will talk about the price of real estate in Turkey, indicators for 2023, a summary of previous years with a future outlook for several months based on the influences that determine real estate prices in large proportions. We will present them to you, and detail them from A to Z, and we will talk about Its future, and about the factors generally affecting real estate prices other than the indicators that are floating on the surface and have become a major factor for them as well, let’s dive in together..
Real estate price in Turkey indicators 2023
- These indicators were the most prominent in the radical changes in the price of real estate in Turkey , and their impact appeared at the beginning of 2023. These changes reached in some places and regions 300% of the real value and price. Are they a real extension of real estate investment? Or is it a real estate bubble? Or is it a special case based on these indicators and will be corrected later? First, before answering these questions, let us learn about the main indicators of real estate prices in Turkey .
- In general, the index is a sign that indicates an increase or decrease in the value of a product or commodity, and it is calculated based on the field and sector it enters. In the real estate market, the index here was based on several factors. These factors are what raised or reduced the value of these indicators, and we will begin to examine them. The first factor and indicator was the biggest reason for the rise in the price of apartments for sale in Turkey .
First: The consequences of the Corona pandemic and its impact on the real estate market
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- The Corona pandemic was the hinge for several sectors in the world, whether in their prosperity, decline, or stagnation, while the real estate sector in most countries of the world was severely stagnant, and the reason is the great closure that occurred during this period, which extended for more than a year and a half in Some countries of the world, and Turkey of course, was one of the countries that were affected in this sector as well.
- As we all know, this pandemic led to a partial general lockdown in Turkey on a daily basis for six months, and in some months there was a complete lockdown and even a curfew! Therefore, in this case, the markets, government departments, and others were closed as well, and no one was thinking about real estate investment in Istanbul, for example! Rather, the only concern was to get out of this pandemic safely and soundly.
- This pandemic led to a period of recession, but immediately after it it became completely opposite, and became a reaction to this recession. As soon as life began to return to normal, the government launched several packages to stimulate the construction and real estate market, and we will come to one of them because it is also an indicator of the rise in real estate prices in Turkey. .
- As a result, all segments were seeking to buy real estate in Turkey , and foreigners also had a large share of the general total in light of the naturalization law in Turkey , a recession and then a revolution in the Turkish real estate market, to the point that the year 2021 was one of the most prosperous years in the world of real estate in Turkey, what is this revolution happening then?!
- Certainly, whenever the demand for any commodity increases, the value and prices for it rise steadily with it, and the real estate market has become like this as well. The demand is great, the incentives are many, and the demand is huge. The price of real estate in Turkey only jumped, leading to an inevitable increase of at least 50 % . %, and this is on average, but in some areas it reached more than that.
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Second: The rise in the exchange rate of the dollar against the Turkish lira
- Real estate around the world is affected by hard currencies, or remains at least at the same value against these currencies, and rises as it rises against local currencies, and this is normal, because real estate is originally built on global standards and standards, not local ones, and after the pandemic, most currencies were falling until... Hard currencies as well, as we have seen, for example, the euro has become less valuable than the dollar!
- Anyone who visited Istanbul in 2020 and visits it in 2023 will certainly notice the difference in the exchange of his hard currency against the Turkish lira. The dollar, the euro and other hard currencies have become weaker than they were before. The increases were at least 100%, from eight Turkish liras against the dollar to eighteen Turkish liras. In front of the dollar!
- The reasons that led to this are many and we will not go into them, most notably the Corona pandemic, inflation, and others...but what does this rise lead to? It certainly leads to an increase in prices in most sectors and fields that use these currencies as value with which to buy imported materials, or things related to those hard currencies.
- On the real estate level, this terrible rise had a very large impact, positive for many who had bought a property in previous years, and it may be negative for some who wish to buy a property in Turkey . In Turkey, the value of the property against hard currencies remains, no matter how much the exchange rate increases. This is normal, and sometimes even increases due to an increase in the value of construction costs, most of which are purchased in hard currencies.
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- This is generally a positive thing for those who chose and preserved their money by purchasing real estate, because the value of money declines as it stagnates in light of such factors, data, and radical changes. The bottom line is that real estate prices in Turkey in 2023 increased in value with the rise in the exchange rate of the dollar against the Turkish lira, by a rate of no less than 70%. % also.
Third, the terrible global inflation and its impact on the real estate market
- Inflation is a scourge and a problem in the entire world, and is caused by several global factors and points that affect all countries. We will not go into them much, but inflation has had a significant impact on most global sectors, starting with basics and food and ending with luxuries. Inflation is the rise in commodity prices in an unexpected and completely sudden manner. .
- Turkey had a large share of the inflation occurring in the world, and the prices of goods increased until they reached numbers that no one expected, as they reached one hundred percent and more than that as well, and this has a major impact in contributing to the contraction of the purchasing power of citizens, and also determining it to what is No more than daily needs!
- The real estate sector witnessed this inflation, of course, in Turkey, and it was the cause of a terrible rise in prices. Some people expected and are still expecting that prices will fall, but is it possible for something whose value has risen to lose it again? This is rarely the case, especially the property that is being sold. About him, he gets sick but certainly does not die, meaning his value will remain within its level in the worst times and conditions.
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- So inflation is a factor and an indicator that raised the value of the property to a rate that exceeded fifty percent as well. These percentages that we mentioned in each paragraph are the first time the Turkish real estate market has witnessed. No real estate researcher for sale in Turkey has ever encountered jumps in real estate prices like those in Turkey ! As we mentioned, this has a great positive angle.
- Positivity comes from the standpoint of quickly rotating capital and obtaining rewarding and profitable investment returns. This is unprecedented in the real estate market in the world and not only in Turkey. Usually, the period of rotating capital into real estate extends to 17 years, but based on the indicators we mentioned, it has become Capital turnover in just 7 to 9 years!
Fourth, local packages and incentives for Turkish citizens and foreigners as well
- In the whole world, incentive packages for citizens and foreigners always have positive or negative effects on the sector for which these packages were presented, and the purpose of them is to benefit as much as possible from these packages for those we mentioned previously, and the benefit also extends to those governments that issued them, and they have goals, dimensions and visions. Economic, political, etc.
- The Turkish government is always keen to urge people to take out their hidden money and circulate it in the Turkish market, in order to revive the economy and other goals, and they had to search for a sector that attracts large numbers, and the real estate sector is the desired sector to achieve this on the one hand.
- On the other hand, it is a facilitation for those who could not benefit from this sector. For example, the package to establish more than 5 million apartments in Turkey, its goal was to help middle-income people achieve the purchase of their first property in Turkey, and in the package that was launched recently about... Loans, the highest of which reached 5 million Turkish liras, for every citizen wishing to buy a property in Turkey , in deferred installments for 15 years! These packages greatly affect the real estate sector in Türkiye.
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- The positive effects are largely prevalent through these distinctive packages, the first of which is the smooth functioning of citizens and others as well, and the second is the increase in the value of real estate in Turkey and the acceleration of capital circulation, as well as the increase in investment returns for those who own real estate in places that, after the great demand, have become highly sought-after and desirable areas. .
What are the most important factors affecting the price of real estate in Turkey, indicators 2023?
What we mentioned previously are the most important key indicators that have clearly affected the past few years. As for the indicators or factors that affect less than what we mentioned, they are what we will mention in the following paragraphs, and we must mention them in this article in order for us to take them into consideration. Otherwise, the loss will be the fate of the properties that we will buy.
First: the location of real estate in Türkiye
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This factor comes in first place in terms of factors affecting the price of real estate in Turkey, and it depends on first choosing the most appropriate city for the intended purpose of purchase in general. We then move in a more compact way and choose the appropriate area, and based on the goal, the correct and appropriate option is chosen.
As for the prices based on the targeted sites, we will mention to you gradually from the highest value to the lowest, which are:
- Apartments located in the centers and nerve centers of cities.
- Apartments located next to the water features “sea and lakes”.
- Apartments located next to main roads in cities.
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- Apartments located next to vital projects and facilities.
- Apartments located next to express transportation.
- Finally, apartments located in alleys and side streets.
This factor comes in second place after location in terms of factors affecting the price of real estate in Turkey , and it depends on the number of rooms first and then the net and gross area. It is natural that the larger the area of the apartments, the higher the price and the higher the value.
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As for the prices based on areas, we will gradually mention to you from the lowest value to the highest, which are:
- Room and living room apartments.
- Two-room apartments and a living room.
- Three-room apartments and a living room.
- Four-room apartments and a living room.
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- Larger apartments and villas as well.
Third: The age of the building and the floor in which the property is located
This factor comes in third place after area in terms of factors affecting the price of real estate in Turkey , and this depends on the quality of the building or complexes in Turkey, and then the floors in which the apartment is located, and it is also natural that the higher the height of the apartment, the higher the value and the higher the price, the buildings. The new collections are also more valuable than their counterparts.
Fourth: The view of real estate in Türkiye
- This factor comes in fourth place after the building and floor factor in terms of factors affecting the price of real estate in Turkey , and this depends on the view of the apartment and its fronts. It is known that the southeastern fronts are generally the best in Turkey and the highest price, and as for the distinctive views, the sea views are always the highest in Turkey. also.
Fifth: Legal papers and property history
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The legal papers related to the property are among the most important factors that affect the price and value of the property as well. Therefore, care must be taken to ensure that all papers related to it are in place and that they are free of any obstacle that prevents difficulty in selling it in the future or being deceived by trickery methods that lead to real estate fraud. Let us enumerate for you the most important details that It should be noted in the history of the property:
- The age of the property since the date of obtaining the building permit.
- The property is free of any mortgage, bank loans, debts, or the like.
- Confirm that there is no party seizing the property and preventing it from being sold, and it is too late and the amount has been transferred.
- Type of title deed “Tabu”. What are the clarifications mentioned for the property? This is very important and affects its selling value later.
- Comparing the property information during the transfer of ownership with what the Tabu employee mentions upon acceptance and signing.
- After we learned about the price of real estate in Turkey, the most prominent indicators of 2023 so far, it is necessary to know, extrapolate, or guess whether these indicators will continue to dominate the Turkish real estate market? Is it possible for prices to return to their value years before the appearance of these indicators that led to their terrific rise?
- Could these prices be just a bubble, as happened in some countries such as Dubai, Spain and other places? Everyone is asking what will happen to these properties if I buy now, and others are asking: Should I sell my current property and get an excellent return on investment, or should I wait longer to witness another rise?!
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- In fact, these questions never end, and it is very difficult to find an answer to each of the questions that are on our minds, because these questions are based on ambiguity and speculation. However, on the other hand, there is always certainty in some points that must be firmly established in the mind of any investor or investor. About to buy a property in Turkey.
- Just to be reassured, and based on ten years of extensive experience in the Turkish real estate market, it is impossible for real estate prices to return to what they were two years ago, no matter what stagnation happens or becomes in the market, because the current value of real estate is the real value except for some places that are exaggerated in terms of prices, but In general, prices up to the present time are consistent with the normal situation and the global situation as well.
- What should we do then to ensure that real estate will not be affected by any factors that may lose its value one day? What points should you pay attention to while buying a property in Turkey , or while searching for apartments for sale in Istanbul? Is it possible to stand in a safe place and remain neutral without being affected by any pest or factor that radically affects my previously purchased property? This is what we must focus on and forget all the questions we mentioned that only lead to anxiety and insomnia due to mysterious matters.
The most important real estate tips for foreigners planning to buy a property in Turkey
First: Acquiring a veteran real estate consultant in the Turkish real estate market
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Turkey, like all countries of the world, needs a companion to accompany you while visiting it and getting to know it from the inside, but the stage of purchasing real estate assets in any country requires an expert real estate advisor, whether you intend to buy in Turkey or any other country, you need an advisor who will pave the way for you, and unless If you want to rely on your experience or vision, you will inevitably make a mistake.
Second: Choosing the appropriate area and location for the goal of buying an apartment in Türkiye
Turkey is a large country containing 81 cities, and each city contains its own municipalities, and each municipality has its own regions, and each region has a special touch that distinguishes it from its counterparts. Some of them overlook the sea completely, some are full of green spaces and forests, and some of them are on lakes as well! So here is the key specifically, the goal must be compatible with the region and place, so in this case what do you need?
Third: Ensure that the property is free of foreclosure or similar problems
- One of the points that you must understand clearly and frankly is to ensure that the property is free of a mortgage or problems that may accompany this property, and how can you know these matters? The methods are varied, but with your lack of experience, you may not be sure of the validity of all of this, and here comes the role of the real estate consultant who explains all of this. You can learn about all the advice in our article 6 real estate tips for foreigners coming to buy a property in Turkey.
- In conclusion, while listing the most important points, indicators and factors related to the price of real estate in Turkey, we must note that Damas Turk Real Estate is happy to serve you with any inquiry or question about all of this. Our website talks about us in all its windows and pages, but to obtain more information, access the service Professionalism All you have to do is contact us directly, because we have a comprehensive and integrated infrastructure for the Turkish real estate market. Take the initiative to contact us immediately.