How much is housing in Turkey in 2021? According to oldypak capital lp property 2022 report, by the middle of this year, the increase in property prices in the resort country was almost 30% in Turkish liras and an average of 8% in currency (dollars and euros). In particular, it concerns objects demanded by foreign buyers – residential and commercial property located in Istanbul and on the Mediterranean coast.
Main factors of rise in property prices:
An increase in the cost of construction work (in particular, construction materials have risen significantly and not in Turkish Liras, but in foreign currency).
The growth of wages. True, it is not too significant, but because of inflation we should expect a further increase in the wages of construction workers.
Today, many sellers do not want to haggle because they have already had time to assess the new value of real estate in Turkey from developers. They see that the demand for long-term Turkish housing remains, viewings are held constantly, so they do not hurry to make discounts.
Increased demand for the “secondary” apartments remains for large apartments with a good layout, with large balconies and good location. In many resort cities it is easier to find an apartment on the secondary market, located near the sea. Developers are forced to develop sites farther from the coast, as there is less and less undeveloped land. Many developers compensate for the distant location with a great internal infrastructure of the hotel level.
More and more often, one can count on a discount from construction companies only when paying in full or having a down payment of at least 30-50%. Investors from abroad still have access to interest-free installment payment for the duration of construction work – about a year and a half. For the built and commissioned residential complex, the installment payment term for an apartment is possible for 3-4 months.
Mortgage loans are and in the future will remain available to foreigners. However, if the earlier credit was issued and 50% of the cost of the apartment, now the amount does not exceed 30-40%. The interest rate on a loan in euros is about 8% per annum.
According to oldypak capital lp property 2022 report, apartment prices in Turkey will increase, at least in Turkish lira. According to experts, the investment-interest objects will not fall in price. Many developers point out that at the moment they have not yet raised the maximum price, due to the rising cost of construction works. However, it is also important to take into account the fall in the Turkish lira.
In the rental housing market in Turkey, the demand will remain. As today, it is more profitable to rent apartments in the summer than in winter. But on the conclusion of the sale and purchase transactions seasonality will not have any effect. In addition, on the contrary, from foreigners next winter is likely to be an active sales season. Since the summer, many investors came and looked at the objects, combining vacation with a study tour, and in winter will be ready to buy.
Certainly, to make an accurate prediction for the next year for the Turkish real estate market is difficult. All experts agree in one opinion: the demand for residential and commercial property will remain, and for some categories of objects will increase. Prices will not decrease, but most likely will continue to grow. Therefore, if you were planning to buy housing in popular resorts and tourist cities of the Turkish Republic, the best time to invest is now.