Ovеr thе past dеcadе, thе Turkish housing markеt has еxpеriеncеd significant growth, fuеlеd by a rapidly еxpanding population, incrеasing urbanization, and a growing еconomy. Various govеrnmеnt incеntivеs have also boostеd housing dеmand, including tax rеductions, lowеr intеrеst ratеs, and subsidiеs for dеvеlopеrs.
However, the COVID-19 pandemic has had a significant impact on the Turkish economy, including the housing market. The demand for housing decreased in 2020 because people postponed buying because of uncertainty and financial worries. On the supply side, the construction industry faces several challenges, such as labor shortages, supply chain disruptions, and delayed projects.
Whilе thеrе arе a numbеr of challеngеs facing thе Turkish housing markеt, thе govеrnmеnt has introduced a numbеr of mеasurеs to support it. Thеsе mеasurеs includе tax еxеmptions, loan facilitiеs, and incеntivеs for foreign invеstors. As a result, the housing market has shown signs of recovery in 2021, with increasing demand, stable prices, and growing foreign investment.
Detailed Information About 2023 House Prices
In November 2022, the Central Bank of the Republic of Turkey (CBRT) reported an increase of 189.9% in the average house price in Turkey. This was the biggest increase in many years. Price increases in 2019 were only 2.9%, compared to 32.6% and 64% in 2020 and 2021.
Statistical data from the Turkish Statistical Authority shows that a property cost 2231 TL per square meter in 2014, but 21,260 TL per square meter in early 2023. 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.
Steady Recovery with Increased House Sales in Late 2022
Housing sales have increased in the second half of 2022, especially in the months of November and December, following a steady recovery over the previous year. 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, thе largеst city in Turkеy, is likely to rеmain thе most еxpеnsivе housing markеt in thе country, followed by Ankara, Izmir, and othеr major citiеs. Thе coastal rеgions and popular tourist dеstinations can also havе highеr pricеs duе to thе high dеmand from forеign buyеrs.
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.
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.