Record Increase in Turkey Real Estate Prices in 2021
The high inflation rate in Turkey has had a significant influence on the country’s housing market. The country’s average home price rise in the twelve months to April set a new high. Istanbul scored a one-year price rise record among Turkish cities, with an annual increase in the price of 28.8 percent, followed by Izmir with an increase of 33.9 percent and Ankara with a rise of 30.3 percent. Due to particular circumstances driven about by the Coronavirus, the Turkish economic sector, which is primarily reliant on the tourist industry, was put under great strain, resulting in a dramatic devaluation of the national currency and a considerable increase in inflation. Nevertheless, all latest data have suggested very significant influences for the Turkish property market with high levels of confidence of more expansion and positive aspects during the next year 2022, which is essentially required a worldwide financial advancement as the global epidemic commences to decline and vaccination initiatives against viral infection begin in all nations around the world.
The Turkish economy bidding farewell to the year 2021 with important outcomes, prompting many financial officials, such as the World Bank and Fitch for enlistment categorization, to revise their anticipations for the state of the Turkish economy in the year 2022, and experts credited such high outlook to a series of reforms applied in the final two months of the year. These economic estimates will have an impact on the Turkish real estate market and real estate prices.
While specialists at the World Bank forecasted 0.5 percent growth in the Turkish economy in 2021, they amended their projections at the beginning of this year to 4.5 percent growth, which is expected to increase to 5 percent by 2022. According to Fitch Rating specialists, the beginning of Coronavirus vaccination resulted in the relaxing of formerly enforced lock-down and quarantine limitations and will result in an expansion of the Turkish economy at the beginning of the next year.
In terms of the Turkish real estate market, analysts predict that prices for new residences in Turkey would progressively grow this year, increasing by 20 percent in the first half of the year and maybe reaching 50 percent due to high sales last year. Turkey has set a new milestone for housing sales, with one million 500 thousand and 316 dwellings sold in 2021. As a result, property sales grew by 11.2 percent over the previous year. In effect, this caused a drop in interest rates in banks and the attraction of a large number of consumers, many of whom were of different citizenship.
The rapid rise in demand is the primary reason for the increase in value. It is fueled by factors such as the availability of a favorable mortgage scheme for local residents, the simplicity of processing deals for foreign buyers, and high profitability, which allows for a significant profit in a short period of time. Although affordable dwellings are the majority in Turkey, there are some very pricey properties depending on their characteristics and location. However, this does not imply that residences with a view of the sea or nature in Turkey are pricey. Especially during inflation, many premium properties are accessible, allowing many foreign investors to purchase without mortgages or bank financing.
International currency exchange rate disparities can result in significant savings for foreign buyers. Since construction expenses have climbed by more than 50% and mortgage interest rates have started to grow, prices automatically raised in 2021. Nonetheless, the property market has remained robust.
CCT Investments’ rich portfolio can provide foreign purchasers with a wide range of affordable and elegant, off-plan, new, or resale apartments in Turkey. On our Real Estate Search list, you may find a wide range of residences, villas, investment buildings, and lands for sale in Turkey.