The report delves into the intricacies of the Turkey property market during the first quarter of 2024. Through meticulous analysis of key statistics and trends by Realty Homist experts, we aim to provide valuable insights for investors, developers, and stakeholders operating within this dynamic sector.
House Sales Statistics, Q1 2024
- Total Sales: In the first quarter of 2024, 279,604 houses were sold in Türkiye, marking a 1.3% decrease from the same period in the previous year.
- Leading Cities: İstanbul: 61,203 houses sold (21.8% of total sales) Ankara: 30,804 houses sold (11% of total sales) Antalya: 20,398 houses sold (7.2% of total sales)
- Lowest Sales: Ardahan (70 houses), Bayburt (135 houses), and Hakkari (180 houses).
Mortgaged House Sales
- Quarterly Performance: 27,622 mortgaged house sales, a 53.0% decrease compared to the same period last year. Mortgaged sales constituted 10% of all house sales in Q1 2024.
Other House Sales
- Quarterly Performance: 251,982 other house sales, a 12.3% increase from the same period last year. These sales made up 90% of all house sales in Q1 2024.
First-Time and Second-Hand Sales
- First-Time Sales: Quarterly Performance: 88,256 houses, a 5.2% increase from the same period last year, accounting for 31.6% of total sales.
- Second-Hand Sales: Quarterly Performance: 191,348 houses, a 4.0% decrease from the same period last year, making up 68.4% of total sales.
Foreign House Sales
- Quarterly Performance: 5,685 houses sold to foreigners, a 48.0% decrease from the same period last year, accounting for 2.0% of total sales.
- Top Cities for Foreign Buyers: İstanbul: 1,956 houses Antalya: 1,854 houses Mersin: 453 houses
- Top Foreign Buyers: Russians: 1,361 houses Iranians: 590 houses Ukrainians: 361 houses Iraqis: 293 houses
Explanation of Trends
- Overall Market Performance: The first quarter of 2024 has shown a mixed performance in the Turkish property market. While total sales have decreased slightly by 1.3%, the market shows resilience with a notable increase in other house sales (12.3%) and first-time sales (5.2%).
- Mortgaged Sales Decline: The significant drop in mortgaged house sales by 53.0% suggests tighter lending conditions, reduced buyer confidence in using mortgages, or possibly a shift in preference towards other financing options.
- Foreign Investment: The sharp decline in house sales to foreigners by 48.0% reflects global economic uncertainties, possibly more stringent regulations, or geopolitical tensions affecting foreign buyer sentiment. Despite the decline, İstanbul and Antalya remain top choices for foreign buyers.
- City Performance: İstanbul continues to lead in house sales, followed by Ankara and İzmir, demonstrating the continuous urban preference and economic activity concentration in these cities. This trend indicates that major metropolitan areas remain attractive for both domestic and international buyers.
Predicted Trends for Q2 2024
- Stabilization of Total Sales: While Q1 saw a minor decline, total house sales are expected to stabilize or see slight growth as the market adjusts to current economic conditions.
- Continued Decline in Mortgaged Sales: Without significant changes in interest rates, mortgaged house sales are likely to remain low. Buyers may continue to prefer alternative financing options or outright purchases.
- Growth in Non-Mortgaged Sales: The upward trend in non-mortgaged house sales is expected to continue, driven by buyers avoiding high mortgage costs.
- Steady First-Time Sales: The increase in first-time sales indicates confidence among new buyers, potentially bolstered by government incentives or favorable economic conditions for new entrants.
- Gradual Recovery in Foreign Sales: While Q1 saw a sharp decline, foreign sales might gradually recover, especially if geopolitical tensions ease and the Turkish lira stabilizes, making Turkish property more attractive to foreign investors.
Market Opportunities
- Investment in Affordable Housing: Developers focusing on affordable housing can tap into the demand from first-time buyers and those avoiding high mortgage rates.
- Luxury Market for Foreign Buyers: Despite the decline in foreign purchases, there remains a niche market for high-end properties, especially in cities like İstanbul and Antalya.
- Sustainable and Smart Homes: Properties offering energy efficiency, smart home technology, and sustainable living features can attract environmentally conscious buyers.
Conclusion
Despite some declines, particularly in mortgaged and foreign sales, Türkiye’s real estate market shows signs of stability and growth in specific sectors. The increase in other house sales and first-time sales highlights a robust market with potential for recovery and investment opportunities as the year progresses. The performance of major cities like İstanbul, Ankara, and İzmir underscores their ongoing appeal and importance in the property market.
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Important note:
Our reports should only be construed as guidance. We assert that any business or investment decisions should not be based purely on the information presented our reports.
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