Türkiye's Real Estate Market in 2024

The Real Estate Market in Türkiye

The Turkish economy has been undergoing a resurgence, recovering healthily from the impacts of the pandemic and ongoing world conflicts. As the country primes itself, investment trust is growing, and so is local spending. The International Monetary Fund (IMF) projects the country’s economy to grow by 3%, revealing trust and stability. Türkiye is also known for choosing investor-friendly practices, including reduced property taxes.

The Turkish Real Estate market is taking full advantage of this, proving that, right now, is the moment to invest. According to Statista, it is a massive industry, expected to reach a value of USD $7,81 trillion in 2024, and progressively grow up until 2028, when it will reach USD $10,29 trillion.

As the forecast for the future promises an even greater surge, the Real Estate infrastructure in Türkiye grows, adapts, and becomes increasingly more modern, and cities like Istanbul, the capital city of Ankara, Antalya, and Izmir turn into hub spots boasting updated modernities, the potential for high financial returns is immense. However, the real value is found in the Turkish passport, unlocked with a Real Estate investment.

A Price Analysis of Turkish Real Estate Market

In 2023, the Turkish Real Estate market reached an all-time high in terms of pricing, a trend that can certainly serve to base expectations for 2024 and beyond. According to the Central Bank of the Republic of Türkiye (CBRT), by October 2023, the Real Estate market prices had increased throughout the entire country by 86,6%, bringing up the cost to an average of TRY 30,036 per square meter. This means more or less USD $930,00 for every 10 square feet. 

While this growth is remarkable, it is down from 2022, when the registered rise in property costs was 179%. When compared to previous years, between 2020 to 2022, it can be verified that this growth is in line with expectations and that the market has stabilized from the meteoric rise witnessed in 2022. In 2020, Türkiye's Real Estate market grew 32,6%; and 64% in 2021. 

2022 was the year when previously implemented policies culminated. In 2020, the Turkish government introduced mortgage loan packages with historically low interest rates to counter the economic challenges caused by the Covid-19 pandemic. In consequence, the interest in property purchases surged massively. At the same time, the supply of housing stagnated. In 2022, similar policies were launched. Whereas mortgage rates previously ranged from 18% to 24%, they decreased to around 12% for first-time buyers, leading to increased interest in Türkiye's Real Estate market.  

The housing supply remained roughly unchanged mostly due to the lingering effects of the pandemic in the construction sector, including significant disruptions and a shortage of workers, all leading to a growing backlog. Furthermore, inflation also played a role, driving the costs of construction materials even more, especially since the Turkish construction industry heavily relies on imported materials. Due to all these reasons, property prices soared in 2022, and though they stabilized in 2023, the Real Estate market is becoming healthier, more relevant, and stable in 2024.

Inflation also undeniably played a key role. When adjusting, the economic growth rate in Türkiye is far more modest than it appears to be. In 2023, the real price increase was only around 12% in U.S. dollars, an amount not to be disregarded, but much more moderate than the 86,6% in the Turkish lira. However, this reveals an extremely crucial factor to consider. The Turkish lira is simply not as valuable in comparison to other currencies. The cost of living for a foreigner living in Türkiye will be drastically lower if they work remotely to another country and earn their paycheck in another currency other than the Turkish lira. Currently, 1 USD is around 32 TRY.

Property Sales - City vs. City

Property sales in Türkiye decreased in 2023, at least in comparison to 2022. According to TurkStat, it decreased by 17,5%. This makes sense to a degree, as the market stabilized from the high levels of inflation witnessed in 2022. A total of 1.225,926 houses were sold in Türkiye, a staggering amount nonetheless, even if around 259,000 fewer houses were sold, down from 1.485,622. 

TurkStat also reveals the most sought-after cities: Istanbul, Ankara, and Izmir, all on Türkiye's Western side, accounting for 25% of the total property sales. The data for Antalya is not revealed, but it is higher than most other regions of the country.

On the other hand, in 2023, the average housing prices across Türkiye's major cities witnessed a steady increase when adjusting for inflation. Throughout most of 2023, property prices rose, on average, between 3% to 20%, depending on the city. Ankara, Türkiye's capital, registered the highest increase, while in Istanbul, it was far more moderate.

TurkStat also reveals almost 3% of the property purchases were made by foreigners, an amount which has decreased from 2022, but will most likely increase as 2024 unfolds. Antalya was the preferred destination of the foreign nationals who acquired a house in Türkiye, with 12,702 registered sales. Istanbul was the second-preferred destination, accounting for 11,229 properties sold within the city.

This is not the first time Türkiye's Western cities have been the most sought-after, revealing a clear sign of interest. Back in 2022, 67,490 houses had been sold to foreign nationals. Of those 67,490, 24,954 were sold in Istanbul, and 21,860 in Antalya.

In 2021, foreign buyers accounted for 58,576 properties purchased in Türkiye. Again, Istanbul, Antalya, and Ankara are at the top of the list, with, respectively, 26,469, 12,384, and 3,672 sales.

For several years, the same cities have been at the top of the most chosen: Istanbul, Ankara, Antalya, and Izmir. Each city holds its unique charm, and distinct appeal for the most varied of reasons, and it is exactly why Investment Visa has procured the best properties on the market to make them available for you.

Even though the numbers may have decreased from 2023, the prospect for 2024 is one of optimism. According to TurkStat, the latest available information pertaining to January and February 2024 set the tone for a bright future in Türkiye's Real Estate market.

Out of the around 174,000 properties bought in the first 2 months of 2024, nearly 4000 of them were purchased by foreign nationals, revealing an uptick in interest. Undoubtedly, Turkiye’s Citizenship by Investment program played a role, revealing the steady and increased interest in obtaining the Turkish passport.

An Increase in Housing Supply in Türkiye

After the 2022 situation, there has been a significant investment in the construction industry in the country, with more properties being built to meet the increased demand and interest in Türkiye's Real Estate market. 

According to TurkStat, a governmental statistical office in Türkiye, the total number of constructed units increased throughout 2023.  

In 2023’s third quarter, compared to 2022’s third quarter, the number of buildings, residential units, and the floor area of buildings increased, respectively, by 24,9%, 35%, and 21,7%. This information translates into a total of granted permits to build residential units increased to a staggering 520,209, for the first 9 months of 2023. An impressive rise of 24,9% when compared to 2022.

In 2023’s final quarter, and comparing to 2022’s 4th quarter, the number of buildings, residential units, and the floor area of buildings increased, respectively by 7,9%, 16% and 8,8%. In the last four months of 2024, more than 321,000 permits had been issued, bringing up the total to more than 830,000 issuances.

With the vast majority of permits being issued for buildings with 2 or more units, it is obvious there has been an increase in interest in Türkiye's Real Estate market, with a particular and heavy focus on the Residential sector, which is the perfect platform to obtain Citizenship by Investment.

Real Estate as an Investment to Unlock Turkish Citizenship and a Second Passport

Türkiye has only been a key international player for a little over 2 decades. The property market opened to interested foreign buyers in 2002, and even then, only under certain circumstances. For instance, back then, only nationals of countries that held a Reciprocity agreement with Türkiye were allowed to buy Real Estate. This meant only nationals from countries like the United Kingdom, Germany, and the Netherlands, which allowed Turkish citizens to purchase property in their territory, could access the Real Estate market in Türkiye. Even these purchases were conditional, as foreign buyers were only allowed to acquire property in specific zones.

Ever since then, Türkiye has made significant strides, progressively opening its market to foreign investors. In 2005, the zones were abolished. In 2012, the reciprocity agreement was withdrawn, increasing the buyable size of the property land up to 33 hectares, fully opening Türkiye to the world, and enabling all foreign nationals to invest in Türkiye's Real Estate market.

However, it was in 2017 that Türkiye truly became internationally relevant when it entered the investment immigration landscape with its Citizenship by Investment program.

Real Estate jumped to the forefront of Türkiye's economy, becoming the main driver behind the Citizenship program. Alongside this option, other economic incentives were launched to entice foreign investors, including regulatory changes, reduction of Land Registry’s title deed fees, VAT exemptions, and stamp duty elimination with promissory contracts.

The Türkiye Citizenship by Investment program further evolved in 2018, reducing the entry requirements even further, but it was in 2022 that it took on the molds of its current version. With one of the most affordable platforms in Europe, Türkiye grants access to its Citizenship status through a Real Estate purchase of USD $400,000.

Turkish Citizenship can be obtained in as little as 3 months with the assistance and guidance of Investment Visa advisors. With Türkiye's passport at hand, one can enter, live, work, and study wherever in the country. Though the country is not in the European Union, it does have special arrangements with the bloc to facilitate obtaining a Schengen Visa, unlocking the rest of Europe.

The Türkiye Citizenship by Investment program also extends to the family, enabling the original applicant to include their family in the process and grant them the Turkish passport. However, the greatest advantages may yet be found in the enhanced global mobility it affords, unlocking visa-free entry to more than 125 countries worldwide, and in the program’s minimum requirements. There are no language or physical presence requirements to hold the Citizenship status.

Increased Yields in a Türkiye Real Estate Investment

In order to maintain the Turkish passport, the purchased property through the Citizenship by Investment program must be held for 3 years. During this time, the property can be rented out, producing some degree of return on investment, especially if there is no intent to live in Türkiye.

The expected average gross rental yield in Türkiye is around 6%, with some variation quarter-on-quarter. For instance, in the third quarter of 2023, the average was around 6.5%. The expected amount decreased only slightly in the first quarter of 2024 to 6,3%.

There are plenty of factors to consider, including the size of the residential unit, especially the number of people a unit can house, and its conditions, among countless others. Generally speaking, rental yields will be higher more so on the Western side of the country, including in cities like Istanbul, Ankara, Antalya, and Izmir.

Regardless of the yields generated by renting out a property, the core value of investing in Türkiye's Real Estate market remains in unlocking the Turkish passport. This is the ultimate return on investment, as it enables family inclusion, enhances global mobility and freedom, among many other benefits.

Buy Property in Türkiye with Investment Visa 

With a positive and bright outlook for 2024 and beyond, the Real Estate industry in Türkiye is prime for investments. As more properties enter the market and become qualified for the Citizenship by Investment program, interest in the program will undoubtedly surge. This, in turn, can potentially lead to a possible price increase to get the Turkish passport, which makes right now the best time to invest in Türkiye.

Real Estate is undoubtedly the best platform for which to pursue the Turkish passport, and Investment Visa has the best properties on the market. Whether in Istanbul, Antalya, Ankara, or in Izmir, Investment Visa has a broad selection of modern properties equipped with the latest amenities readily available for purchase.

We go further than Real Estate services, and into Investment Advisory. Any member from our veteran teams can successfully guide you through the application process, up until the Passport is in your hands. Contact Investment Visa today and start the journey toward a brighter future and unlock the Turkish passport!