What to expect in the Turkish market in 2024

With Turkiye you will have an opportunity to come one step closer to the business and real estate market in Eurasia, that is full of entrepreneurial opportunities and innovative ideas. The country boarders with a great range of countries, thus, suggesting new opportunities to people for efficient entrepreneurship and business development. It possesses pleasant sunny climate, a great historical and cultural heritage, and advantageous location making it extremely convenient to set up business there.

In particular, Turkiye is actively advancing the real estate segment, with its most popular destinations like Istanbul, Antalya, Alanya, Bodrum, Dalaman, Izmir, Ankara, Mersin, and others. The Turkish real estate market has been experiencing upward momentum for the last couple of decades, thanks to rising demand from tourists, expatriates, investors, businessmen, locals. Along with this organic interest, the government is also making significant efforts towards market stimulation through a citizenship program.

Real estate price growth in Turkiye for 2024

It is widely acknowledged that Turkish market has always been attracting real estate investors. In 2023, prices for properties registered a staggering growth rate of 86.46%. According to our experts’ opinion, the trend of quick growth of real estate prices will continue in 2024 as well.

This will be majorly caused by the composition of these factors:

• growth of land price,
• high demand on rental market,
• rise in the cost of construction materials,
• continuing urbanization and development of major cities owing to various infrastructural projects.

Market situation

There are key factors, that influence and direct the situation on the Turkish market nowadays.

Price growth for 2022

2022 was marked by high activity in the residential real estate market. It was the times of historic growth of prices. Thus, September-October 2022 experienced an increase in price of up to incredible 200%.

In accordance with some data, Istanbul, Antalya, Mersin, Ankara, and Bursa were the most popular destinations among buyers in 2022. The purchasers were predominantly from Russia, Iran, Iraq, Germany, Kazakhstan, and Ukraine.

Decrease in the pace of construction

The number of construction projects under construction in Turkiye is decreasing significantly. The tendency started in the pandemic period. According to the Turkish Statistical Institute (TUIK), 7 years ago, 1.4 million construction licenses were issued, in 2021, the number decreased to 725 thousand, in 2022, to 695.8 thousand, in 2023, it fell to 520 thousand.

Another push factor for this decrease was the earthquake, that happened in February 2023. After that, many construction companies engaged in general constructing were sent to build houses on the area stroke by the devastating earthquake. Thus, the Turkish construction industry grew slightly in 2023 due to the reconstruction of buildings and infrastructure, which had been damaged.

The current trend is that the predominant part of residential properties in Turkiye is secondary housing, since new buildings are becoming unaffordable for locals, that’s why developers are reducing new projects. It is worth suggesting that, ultimately, it will lead to price increase of secondary real estate and shortage of housing in perspective.

Price growth for construction

Construction expenses are keeping on growing. This year, rebar prices grew by 41%, prices for concrete grew by 134%, cement – by 147%.

The cost for labor is also going up. Thus, the minimum wage was risen by the President of Turkiye. So, the salaries of construction specialists, such as designers, engineers, have increased, too.

Forecast for 2024

Experts at One World forecast further overall growth for 2024. The value and price of real estate will rise. Moreover, the development of various regions is predicted. What is necessary to specify is that investors are going to show interest not only in residential real estate, but also in commercial real estate and land purchases.

It is incredibly crucial that in its efforts to balance economy, nowadays the country is increasing foreign direct investment, implementing infrastructure projects, that will prospectively lead to the real-estate boom. Thus, tax incentives, facilitated property buying processes for foreigners, CBI programs have also been initiated by the government to foster the market.

Undoubtedly, the increase in prices will not cover all the regions of Turkiye. More price increases will supposedly occur in the areas with high tourism attractiveness rather than in less developed and rural regions, where prices may even experience a slight decrease.

There are some risks, that affect the further development of this dynamic sphere. Namely, political instability, economic crisis, currency fluctuation are among the biggest today’s challenges for Turkiye. However, despite difficulties, Turkiye will carry on being one of the most attractive real estate markets in the coming period, making it possible for investors to benefit largely from substantial returns through real-estate investment opportunities.

Where can I invest

First of all, Istanbul, and the areas by the sea are on top of the list where to acquire real estate. Everyone's favorite Antalya, Alanya, Bodrum, Dalaman, Izmir, Ankara, Mersin, and others are flourishing as well. A foreigner has the right to resell real estate after 3 years.

The growth of the cost per square meter and that of rent is up to specific region. The increase is driven by many factors: infrastructure, social facilities, proximity to the airport, accessibility of public transport and many others, our expert acknowledges.

One World cooperates with reliable developers in Turkiye and will help you select an appropriate variant taking into account your goals.

Conclusion

Despite political turmoil, global economic crisis, still, investing into real estate continues to be one of the most reliable investment tools worldwide. The value of housing will continue to grow. The purchased property can be rented, resold at any time, so you will anyway remain in the black.

In this regard, Turkiye is a very alluring spot. One of the greatest benefits of investing into real estate in Turkiye is getting Turkish Citizenship. Under the program, an investor is required to buy real estate worth at least $400,000 for a passport, and $200,000 for a residence permit.

One World will consult you on every aspect, assist you with making choice and provide you with all legal and notary support throughout the whole process. Contact us to get a free consultation.