Report on the state of the Turkish real estate market
BETAM University together with the largest Turkish real estate classifieds site Sahibinden have prepared a joint study on the real estate market by the end of August. We have collected key metrics and theses:
▪️The rate of price growth is decreasing
The growth rate of the price index, which increased by 8.6 points in July, increased by only 1.9 points in August.
▪️The number of offers has increased
In August, compared to July, the number of ads for the sale of residential properties increased by an average of 10% both across the country and in three major cities: Istanbul, Ankara and Izmir. There are still significantly fewer offers than in the spring of 2022.
The ratio of the number of homes sold to the number of new ads has increased in three major cities
In Istanbul, Ankara and Izmir, sales are going faster than new objects appear on the market.
▪️Cheap housing is getting more expensive faster than elite
The cheap and elite segments were determined by separating 20% of the lower and upper price ranges per sq. m. In the period up to June 2022, the annual rate of price change for these two types of housing moved in parallel. Since July, the growth rate of prices for cheap housing continued to grow, and for elite housing began to decline. This is probably a consequence of the unavailability of credit for luxury housing.
▪️Average prices for cheap and luxury housing throughout Turkey in August
The average price for luxury housing was 34,205 liras (1,900 US dollars), for cheap — 6,601 liras (370 US dollars). Recall that the prices are calculated by gross area, which in Turkey includes a share of the total house area and may exceed the net area inside the walls of the apartment by 30-60%. To bring the price to the usual for a foreigner to understand, it is necessary to multiply on average twice. In large cities, especially in Istanbul, prices exceed the average by 2-4 times.
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