The real estate industry in Turkey experienced important events in 2022.
The beginning of massive volatility in the real estate sector occurred in December 2021 following the continued loss of value of the Turkish Lira. So that the value of the lira against the dollar decreased from 8.5 to 17 in less than a month. With the intervention of the government in that period, this intensity was reduced to some extent. These fluctuations in the economic field affected the construction and real estate industry.
In 2022 the number of transactions was very similar to the same period of 2021 with a minor decrease in the volume.
House Sales Volume in Turkey in Last 10 years
Total number of house sales in 2022 has no major change compared to 2020 volume of house sales in Turkey which was the highest number in last 10 years. In 2022, second hand house sales decreased by 0.5% compared to the previous year and became 1,025,543 units having 69% share in total sales.
Turkey lived an average of 69% inflation in 2021. Likewise price index for residential properties has been increased with YOY average of approx. 200% for cities like Istanbul which puts Turkey on the top of list among capital gain in properties in the world. The number of yield on property prices might seem unrealistic or deceiving which is true!
In reality there was no huge change one prices last year, the fact that way capital appreciation in Turkey has been between 15%~20% as average, since the Turkish Lira lost the value around 100% and followed by significant increase in cost of construction, property market has just adopted the impact and normalized the prices index based on economic facts. Therefore landlords and development companies has tried to survive
Price Index for properties in Turkey compared to U.S.
Compared to U.S. House price index, Turkey has recorded better performance in 2022. However inflation and currency devaluation could be one the main factors to effect the price index.
As always Istanbul city has the highest number of sales with 259,654 units (17% share of total sales), Ankara with 126,166 units, Izmir with 83,502 units and Antalya with 80,459 units are the next highest volume of sales in properties among other Turkish cities.
There is significant increase in number of house sales for international investors in 2022, which is the highest in last 10 years with15% increase compared to same duration in 2021.
Russian nationals are standing on the top of list with purchasing 16,312 units of houses in Turkey in 2022 which has 200% increase compared to 2021, Iranians stand in second place with 8,223 units that has been decreased 20% compared to 2021. Iraq with 6,241 as third biggest buyers and Germany, Kazakhstan and Ukraine are next countries invested in Turkey in 2022.
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