Turkey’s Housing Prices Surge 109%, Rents Up 136% in Q3 2023

Endeksa, which calculates real estate values and offers future value predictions using artificial intelligence and big data analysis methods, has taken a close look at the housing sector and shared its report for the 3rd quarter of 2023. Housing prices in Turkey have increased by 109% over 1 year In the 3rd quarter of 2023, the number of housing sales increased by 1% compared to the same period last year, with 334,295 units sold. The number of housing sales increased by 18% compared to the previous quarter.

According to the 2023 3rd Quarter Housing Sector Analysis Report prepared by Endeksa, as of the end of the 3rd quarter, the annual increase in housing sale prices across Turkey was 109%, while the average housing square meter sales price was 23,031 TL, the average amortization period was 16 years, and the average marketing period was 78 days. Housing prices in Istanbul increased by 93% in 1 year In Istanbul, where 14% of the housing sales in the 3rd quarter took place with 48,379 units, housing prices increased by 93% over 1 year, and the average square meter sales price became 34,856 TL. Housing prices increased by 126% in Ankara and 100% in Antalya In Ankara, where 9% of the housing sales in the 3rd quarter took place with 29,743 units, housing prices increased by 126% in the last year, and the average square meter sales price was 18,771 TL. In Antalya, where 5% of the housing sales took place with 15,962 units, housing prices increased by 100% over the last year, and the average square meter sales price was 32,258 TL. The highest value increase occurred in Hatay, Ankara, Elazığ The provinces with the highest annual value increase are Hatay, Ankara, and Elazığ respectively. In Hatay, the value increase in housing sale prices was 158%, the average housing square meter sales price was 17,512 TL, and the average housing price was 2,714,360 TL. In Ankara, the value increase in housing sale prices was 126%, the average housing square meter sales price was 18,771 TL, and the average housing price was 2,440,230 TL. In Elazığ, the value increase in housing sale prices was 124%, the average housing square meter sales price was 10,979 TL, and the average housing price was 1,811,535 TL. The highest number of available units for sale was in Istanbul with 76,367 units Among the 30 provinces with the highest number of housing sales, the highest stock as of the end of the 3rd quarter was seen in Istanbul. According to the report, as of the end of the 3rd quarter, there were 76,367 housing units in stock in Istanbul. The number of stock units was 44,286 in Ankara and 22,028 in İzmir. As of the end of the 3rd quarter, the annual increase in housing rents in Turkey was 136% According to the report, as of the end of the 3rd quarter, the annual increase in housing rent prices across Turkey was 136%. The average housing square meter rent price in Turkey became 125 TL.

Top 10 Neighborhoods to Invest in Real Estate in Istanbul

The provinces with the highest average housing square meter rent prices in Turkey were Muğla, Istanbul, and Antalya respectively. In Muğla, during the 3rd quarter of 2023, the average housing square meter rent prices were 181.81 TL, and the average rent price was 18,726 TL. In Istanbul, the average housing square meter rent prices were 175.04 TL, and the average rent price was 18,029 TL. In Antalya, the average housing square meter rent prices were 150.67 TL, and the average rent price was 16,574 TL.

Looking at the stock numbers for rental housing, the highest stock is again in Istanbul. As of the end of the 3rd quarter of 2023, there were 35,124 units in Istanbul, 13,500 in Ankara, 8,845 in İzmir, and 8,295 in Antalya for rental housing. Second-hand housing sales constituted 71% of total sales, while mortgage-backed housing sales made up 12% In the 3rd quarter, there were 236,856 units of second-hand housing sales. With this figure, second-hand housing sales increased by 21% compared to the previous quarter and by 4% compared to the same period last year. Second-hand housing sales made up 71% of total housing sales.

In the 3rd quarter, mortgage-backed housing sales constituted 12% of the total housing sales, amounting to 39,354 units. Mortgage-backed housing sales decreased by 37% compared to the previous quarter and by 32% compared to the same period last year.

How to Successfully Sell Your Property in Istanbul

Founder of Notte Global, Mr Yusuf Boz evaluated the developments in the real estate sector: “According to data, in the 3rd quarter of 2023, housing prices in Turkey showed an annual increase of 109%, while rent prices increased by 136%. The high increase in housing prices, which started with the pandemic and continues to this day, and the harder access to credit due to rising interest rates this year are causing a slowdown in housing sales. With falling sales figures, the monthly increase rate in housing prices has also decreased and is moving in line with inflation. One of the most important factors affecting housing prices, construction costs, also shows signs of improvement. In August, the construction cost index, which saw an increase of over 100% in 2022, was announced at 66.46%. This is a positive development for the long-term closure of the current housing supply deficit. As construction costs decrease, the number of houses in the market will increase, which will normalize both housing prices and rents. I recommend that individuals who want to buy or sell real estate, especially from this period onwards, make very careful examinations before making their decisions,” he said.”