Over the past decade, the Turkish housing market has experienced significant growth, fueled by a rapidly expanding population, increasing urbanization, and a growing economy. The demand for housing has also been boosted by various government incentives, such as reduced taxes, lower interest rates, and subsidies for developers.
However, the COVID-19 pandemic has had a significant impact on the Turkish economy, including the housing market. In 2020, the demand for housing decreased as many people postponed their purchasing decisions due to uncertainty and financial concerns. On the supply side, the construction industry faced several challenges, such as labor shortages, supply chain disruptions, and delayed projects.
Despite these challenges, the Turkish government has introduced several measures to support the housing market, such as tax exemptions, loan facilities, and incentives for foreign investors. As a result, the housing market has shown signs of recovery in 2021, with increasing demand, stable prices, and growing foreign investment.
Steady Recovery with Increased House Sales in Late 2022
The housing market has steadily recovered over the previous year, with house sales increasing in the second half of 2022, especially in the months of November and December. Due to this impressive performance, many industry analysts predict that builders will be aiming to take advantage of the housing market’s resurgence and may be preparing to construct and release a significant number of new houses in the upcoming year.
The Turkish real estate industry appears to have a promising future in 2023. But a few possible risks could temper its expansion. The housing prices in Turkey for 2023 are likely to be influenced by various factors, including the overall economic conditions, political stability, and the regulatory environment.
In addition, housing prices can vary depending on the location, type, and quality of the properties. Istanbul, the largest city in Turkey, is likely to remain the most expensive housing market in the country, followed by Ankara, Izmir, and other major cities. The coastal regions and popular tourist destinations can also have higher prices due to the high demand from foreign buyers.
Turkish State’s Investment Projects Drive Real Estate Growth
Turkey’s real estate industry has had a spectacular rebound over the last two years. There are various indicators that point to a continuation of this recovery in 2023. One of the most important aspects is the Turkish government’s engagement in the real estate industry and its provision of numerous facilities to investors. The Turkish government has implemented various measures to support the real estate market, including reducing taxes and providing subsidies for developers. The government has also introduced incentives for foreigners to invest in Turkish real estate, increasing demand from foreign buyers.
One of the most significant reasons that contributed to the growth in the cost of real estate in Turkey and worldwide was the Turkish state’s plan for the year 2023. This involves the beginning of extremely sizable architectural and residential investment projects, which are global projects, in various Turkish cities. The rivalry among international investors to purchase Turkish real estate has intensified due to several magnetic elements, such as the possibility of getting Turkish citizenship by purchasing a house there. This predicts an increase in real estate prices in Turkey in 2023.
Furthermore, the government’s policies toward the real estate market will play a crucial role in determining housing prices. If the government continues to provide incentives for developers and foreign investors, this could lead to an increase in demand and subsequently, an increase in housing prices. However, if the government introduces measures that discourage investment in the real estate market, this could lead to a decrease in demand and a fall in housing prices.
Detailed Information About 2023 House Prices
According to the Central Bank of the Republic of Turkey (CBRT), the average price of houses in Turkey went up by 189.9% in November 2022 compared to the year before. This was the biggest increase in many years. In 2019, prices went up by only 2.9%, while in 2020 and 2021 they increased by 32.6% and 64%, respectively.
New data obtained from the Turkish Statistical Authority shows that in 2014, a property cost about 2231 TL per square meter, while in early 2023 it cost about 21,260 TL per square meter. Experts predict that prices will continue to go up in 2023 if the government keeps the same rules. Many builders are also offering new homes at low prices, making them more accessible to buyers.
The Turkish housing market looks very promising for 2023, with many affordable new homes available. Buyers will have a wide range of options to choose from, and builders are constantly improving and innovating. The market will be exciting to watch as it continues to evolve and expand.
While it is impossible to predict what the housing prices in Turkey will be in 2023, we expect that the various factors that we mentioned above will play a significant role in determining the market’s direction. Investors and buyers should keep a close eye on these factors and seek the advice of professionals before making any effective real estate investments.