Turkey Property Prices Index 2023.The Turkish real estate market has shown resilience and steady growth despite global economic headwinds. For international investors and second home buyers, Turkey remains an attractive market offering high rental yields, residency benefits, and potential for long-term capital appreciation. As we move into 2023, here is an overview of Turkey’s property price index and factors impacting the market’s performance.
Property Prices in Turkey: Market Overview for 2023
According to the latest data, Turkish property prices have continued to rise at a healthy pace, with the residential price index increasing 22.7% year-on-year in October 2022. This steady upwards trajectory in property values reflects strong fundamentals driving demand across Turkey.
Istanbul and other major cities like Antalya, Ankara and Izmir have seen the highest price growth, while secondary cities are also witnessing new projects and foreign buyer interest. The market slowdown seen in 2022 due to currency fluctuations and inflation has been temporary. Leading indicators point to the long-term investment case for Turkish real estate remaining convincing.
What is Driving the Growth in Turkey Property Prices?
- Surging population and rapid urbanization increasing housing demand
- Ongoing infrastructure and transportation projects connecting cities
- Turkey’s robust tourism sector driving foreign buyer interest
- Retirement demand by European baby boomers
- High rental yields averaging 8-10% on properties
- Residency benefits and route to citizenship through investment
- Increased economic ties with the Gulf, Africa and Asia
Is Now a Good Time to Purchase Property in Turkey?
For international investors, the current climate does present a buying opportunity. The temporary stagnation in 2022 has meant more negotiable prices and payment plans in many projects. Despite rising inflation, Turkey’s housing market has proven to be a hedge against currency devaluation over the long-term.
With mortgage rates still around 1.5% per month, finance costs remain affordable for locals. For foreign buyers, the prospect of earning Euro/Sterling-based rental yields higher than most European markets offers appeal. Tourism numbers are also expected to keep rising, bringing strong occupancy and rental demand across cities.
2023 Turkey Property Market Outlook
Based on current projections, Turkey’s real estate market outlook remains positive for 2023. Price increases are expected to be more gradual but still surpass general inflation. This indicates real gains in equity for investors.
The property market in Istanbul is forecast to grow around 15-20%, with other hotspots like Antalya and Bodrum seeing similar growth. The value appeal of Turkey’s real estate, improving economic ties, and growing international interest are all tailwinds.
For those considering Turkish property, 2023 looks to be an opportune period to enter the market and capitalize on Turkey’s long-term growth story. The supply-demand dynamics underpinning the industry remain robust. With proper due diligence, Turkish real estate can hedge against inflationary pressures and geopolitical risks better than many peer markets globally.