Real estate in Turkey is growing rapidly in price. At the end of 2021 Turkey took the world leading position to increase real estate prices. Statistics show that annual price increase amounted to more than 50.5%. In the individual, most popular areas and cities of Turkey it increases even more. Rising of prices is observed absolutely to any type of real estate: both at residential facilities, and land plots and commercial real estate.
If you look at the situation from the inside, it becomes obvious that there is no artificial price increase, but there are a lot of objective reasons for such a rapid takeoff value of real estate.
The main reasons for the rise in property prices in Turkey include:
Rising construction costs is one of the key reasons of rising housing prices. The cost of construction in Turkey per year, on average, increased by more than 67%. Most of all the costs of building materials were increased due to a pandemic, first of all, because most of the building materials are imported to Turkey. Because purchase of materials is made in currency, the instability of the Lyra also contributed to the price increase. Thus, developers are forced to raise housing prices in new buildings.
Rising prices for land under construction. The volume of construction of new objects (both the amount and scale) increased at times in Turkey. And the most prestigious areas in the claimed cities (Istanbul, Izmir, Antalya) are already completely built up, there is practically no free space. New places for building are located on more remote territories, but there are not so many free land there. Thus, on the land under construction in the city or in a place where there is everything you need for life, prices are growing in accordance with the growth of demand for these very lands. And this cost of expenses is also included by the developers in the cost of housing.
Rising prices for transportation costs: the transportation of building materials, the rise in price of gasoline, because Turkey also imports oil, and prices on it in the global market are growing. These are additional expenses for developers.
Rising prices for paperwork services. Inflation has become a real world problem. In many countries, including in Turkey, the national currency is rapidly losing positions towards the dollar. The Turkish government takes measures to support the population and economy, but the problem is not solved so quickly. Growth of prices for everything around, respectively, specialists in paperwork also raise the cost of their services. Translators, lawyers, etc. now take 2-3 times more than a year ago. By the way, this conserns not only to individuals, but also state organizations. The cost of TAPU, for example, also increased. The building licenses are also increased in price.
Growing demand for real estate. First of all, the pandemic made its adjustments: the construction of real estate has slowed down in the past two years, and the demand has grown rapidly. A high level of sales against the background of a decrease in the pace of construction led to the fact that the reserves of residential fund decreased significantly. This also became to be the reason for rise in real estate prices in Turkey. Stability of the economy, clear political position, transparent laws, excellent opportunities for study, inexpensive life, affordable and high-quality health care, high level of loyalty to foreign investors and the highest quality, and real estate comfort – these factors are very attractive to foreigners from all over the world. Foreigners, despite the rise in housing prices in Turkey, from year to year establish records for real estate purchases in Turkey. Many of them acquire housing for moving to permanent residence for the sea. Statistics tells us in the language of the numbers: only in one region of Antalya over the past year there has been registered by almost 42 thousand more foreigners than in the year of 2020!
Buying real estate by the sea in the role of investments is equally popular. Real estate investment is always extremely profitable, because this is not only a way to maintain your capital, but also to multiply it. And real estate by the sea in a stable country will never lose its relevance and value!
The rise in housing prices in Turkey will completely definitely continue this year. So, this can be profitable for resale. Especially if they are bought at the construction stage, because the developer itself has the starting cost of the property to increase in price to 35% before putting the object into operation.
These facts have become the main reasons for the rise in real estate prices in Turkey. As can be seen, all of them are objective and logical. But the main thing is that you can now earn money on this. Purchase real estate by the sea in Turkey – save and multiply your capital!
Favorable investments are always easy when you trust the team of professionals! For this we are here:
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