A Look Ahead: Real Estate Prices in Turkey for 2023

Today, Turkiye attracts thousands of people from several countries around the world to own and buy real estate in Turkey.

Turkey has become the focus of attention in this matter due to several factors and advantages. Many factors like the strategic location of Turkiye and the beauty of its nature and the charm of its history.

In this article, we will talk about real estate prices in turkey and the main factors that affects the change of properties prices.

Real estate prices in Turkey are the highest in the world in terms of percentage increase!

Real estate in Turkey ranked first globally in terms of price increases in 2023 by 167.9% compared to other real estate capitals, according to visualcapitalist Foundation in its report on the real estate price index in the world.

Turkey's real estate topped the rise by a wide margin from its counterparts, with Serbia and Russia coming in second place with 23.1% .

North Macedonia ranked third with 20.6%.

The fourth and fifth places, respectively, returned to the real estate of Iceland and Croatia, which recorded an increase of 20.3 and 17.3%, respectively.

The visualcapitalist Foundation's list included in its report 10 countries that have seen a remarkable rise in 2023.

List of countries with the highest real estate prices in 2023

The table below shows the percentage increase in real estate prices in different countries of the world during 2023.

Is the rise in real estate prices in Turkey a positive or negative thing

The next foreign investor to buy real estate in Turkey may be afraid at first glance of the record rise in real estate prices in Turkey in just one year.

But if he sees from the perspective of an investor who wants to increase the value of his real estate in one year by more than 160%, the percentage will push him to take up the property with enthusiasm and passion.

The increase in real estate prices in Turkey during 2023 is another proof that Turkey's real estate does not know a decline in value, but on the contrary, its investment value is above expectations.

For example, a foreign investor who bought a property in 2022, reaped a profit estimated at about 168% of the purchase price, which is a distinctive and rare deal in the real estate market across the world.

On the other hand, the high price index in Turkey is a strong evidence of the active and permanent movement in the Turkish real estate market, and the high demand from customers for ownership and growing demand, otherwise we see a decline in prices to attract the customer and not an increase in the value of real estate projects.

The rise in real estate prices in Turkey proves once again that real estate in Turkey is solid, not affected by crises, but on the contrary, its strength and rigidity increases in adversity and economic shocks.

Why have real estate prices increased in Turkey in 2023

Several economic and political factors have come together that have led to a rise in Turkish real estate prices, including what is general and what is specific to Turkey, among them:

• The global rise in building materials after the corona pandemic and the Russian – Ukrainian war and its direct impact on real estate prices, especially since Turkey has many urban projects under completion .
• The recorded decline in the value of the Turkish lira against hard currencies, in turn, led to the approval of increases in real estate prices in Turkey, which are among the most suitable prices globally, and therefore the large increase recorded does not mean that real estate prices in Turkey are the highest globally, but are considered very reasonable compared to scattered real estate areas around the world even after the rise.
• The growing global demand for real estate in Turkey has led to increased competitiveness among construction companies, which in turn has raised real estate prices.

The significant improvement in infrastructure in Turkey has made the value of its real estate rise periodically.

In the end, it can be understood once again that the great rise witnessed by Turkey's real estate will benefit former property investors or those who are thinking of buying real estate in Turkey, as the percentage of increase is guaranteed if the investor decides to resell his property, in addition, the rental prices of real estate in Turkey have also seen a significant increase In favor of the investor wishing to exploit his property by leasing.

What are the factors that determine real estate prices in Turkey in general

Many things control real estate prices in Turkey, including fundamental and secondary, but we will mention the most common things, namely:

Geographical location of the property

Here we are talking about the location of the property in terms of the city in which it is located and the neighborhood or area of the property within this city.

.First, let's be aware that real estate prices in Turkey change significantly between an increase and a decrease between cities, for example, the prices of apartments in Istanbul considered the highest among the prices of apartments in other Turkish cities due to the economic and tourist importance of the city.

Secondly, it also depends on the neighborhood where the property is located, is it an upscale or popular neighborhood, is the neighborhood close to vital centers, the city center, or in the suburbs, or is the property close to the sea or important tourist areas in the city.

Location of the property in construction

If the property is within a building or a residential complex, the floor on which the property is located and its destination affects the price, the properties on the lower floors in ordinary buildings and in city centers are higher, but in residential complexes and towers, especially if there is a beautiful view of the complex, the price of the property rises on the upper floors.

Also, the side of the property, whether its ventilation and lighting are good or not, or whether the view of the property is closed by another building or open, are also matters that enter into determining real estate prices in Turkey.

Property type

Real estate in Turkey has many types and their prices vary, of course, depending on the size of the demand for the type of property itself, that is, if the city where you prefer to buy your property has a lot of demand for villas in Turkey, this means that the prices of villas are the highest and in this style, as well as in commercial cities, there is a lot of demand for commercial real estate suitable for real estate investment, such as apartments Hotels and offices have higher prices.

Architectural design of the property

Of course, the aesthetic aspect of the property affects its price, as the more luxurious, unique and beautiful the exterior design of the building or complex, the higher its costs, which is reflected in the prices of real estate and houses within it.

This is considered one of the priorities of construction companies in Turkey, as they compete with each other to build luxurious and beautifully designed projects.

And do not forget about the subject of the area of the property and the distribution of rooms in it, which also plays a role in determining its price.

The quality of materials used in cladding and finishing

Also, the quality of the materials used in finishing and cladding the apartment or real estate, and therefore increasing the cost of its construction, if the materials are of high quality, should add to its price.in general, real estate in Turkey is mostly built and finished with high-quality materials of the best types. perhaps this point is one of the main reasons that push many to buy real estate in it.

Available services and facilities

Real estate prices in Turkey, located within residential complexes, must be higher than apartments located in an independent building.

.The reason behind this is that these complexes provide residents with a wide range of first-class services and facilities that meet the daily needs and requirements of residents.

Properties that offer very close proximity to services such as shopping centers, cafes, restaurants, cinema complexes, supermarkets, schools, hospitals, pharmacies, subway and bus stations will always have a higher value than properties that are far from these facilities.

Usually buyers want to live in a place that provides them with the concept of “a city within a city " for a more easy life, and this matter, although it increases the price of the property, but it is highly sought after by buyers, especially foreigners.

Apartment revenues

After completing the transactions of buying apartments for sale in Turkey within residential complexes, or even renting them, you will automatically find your discussion with the seller centered on proceeds of the apartments which relate to additional material value for services provided in the residential complex in which you purchased a property .

This point is related to the subject of services and facilities, i.e. real estate within residential complexes, the availability of facilities such as swimming pools, gyms, playgrounds, in addition to cleaning, repair and security services all require expenses to be added to the price of the property and thus increase it.

Property age

This is not about real estate in Turkey in particular, because when you want to buy a property in a place in the world, the age of the property in conjunction with its location affects determining its price.

For more detail, when we talk about an apartment in a building in a popular area that is several years old, the price of the property in it must be lower than a new apartment in the same area or a more modern area.

On the other hand, in other cases, especially in ancient and historically important cities such as the Turkish city of Istanbul, the price of the property increases with the increasing age of the property if it is located in a historical area or the building itself is considered one of the valuable archaeological monuments in the area, and this situation can be encountered when buying an apartment in Istanbul in And others.