Realty HOMIST | Istanbul Real Estate Market | Q3 – 2023 
While third-quarter transactions in 2023 show a 1% increase, we are still witnessing a 14.9% decrease in the first nine months of the year compared to a similar period in 2022, according to statistics. The recent increase in bank interest rates has had a direct impact on housing transactions with bank facilities. In fact, September saw the lowest real estate transactions since 2021, and this trend is expected to continue through the end of 2023.
Foreign investment in the housing sector has seen a noticeable decline, and new changes in residency laws are likely to intensify this trend. During this period, over 70% of real estate transactions have been conducted by foreigners, particularly from Russia, Iran, and Iraq.
In terms of housing price growth in Turkey, the third quarter of 2023 has experienced a significantly slower pace. Despite high inflation rates of over 50% and an 8% depreciation in the value of the lira, the real estate market has remained stagnant. Many transactions during this period have occurred well below the intrinsic value of properties. This is part of the global housing recession that has also affected the Turkish market.
