Endeksa May Data: Provinces with Highest Annual Value Increase Antalya, Istanbul and Mersin

In May, 122 thousand 768 housing sales took place throughout Turkey. Residential sales decreased by 8% in May compared to the previous month, up 107.5% compared to the same month of the previous year to 122 thousand 768.

According to the Endeksa data, the annual value increase in housing sales prices in Turkey as of the end of May was 172%. The average sales price of residential square meters throughout Turkey was 9 thousand 363 TL, the average housing price was 1 million 264 thousand 5 TL, and the return period of housing investment was 17 years.

Construction costs increased by 106.6%

When we look at the construction cost indices, which is one of the most important variables affecting housing prices, 2022 increased by 106.6% compared to the same month of the previous year by 6% in April 2022. The highest annual increase in construction cost indices was 134% and materials, while the increase in labor cost was 44% annually.

Sales of mortgaged housing amounted to 29 thousand 335

Mortgage housing sales across Turkey were 29,335 in May, a decrease of 8% compared to the previous month, an increase of 178% compared to the same month of the previous year. In total residential sales, the share of mortgage sales amounted to 23.9%. Mortgage housing sales in January-May period amounted to 129 thousand 707, an increase of 72% compared to the same period of the previous year.

Number of first-hand residential sales increased by 80.5%

The number of first hand residential sales across Turkey increased by 80.5% in May compared to the same month of the previous year, amounting to 32 thousand 861. In total housing sales, the share of first hand housing sales was 26.8%. First-hand housing sales in the January-May period amounted to 163 thousand 719, an increase of 28.1% compared to the same period of the previous year. Second-hand housing sales increased 119.5% in May compared to the same month of the previous year, up 89 thousand 907. In total housing sales, the share of second-hand housing sales was 73%. Second-hand housing sales amounted to 412 thousand 170 in the January-May period, an increase of 42% compared to the same period of the previous year.

5 thousand 962 houses sold to foreigners

Residential sales to foreigners increased by 236% in May compared to the same month of the previous year to 5 thousand 962. In May, the share of housing sales to foreigners in total housing sales was 5%. Istanbul took the first place in housing sales to foreigners with the sale of 2 thousand 451 housing. Istanbul was followed by Antalya with the sale of one thousand 885 houses and Ankara with 249 housing sales, respectively.

Istanbul has the highest share of 22 thousand 148 residential sales and 18%

Istanbul had the highest share in residential sales in May with 22 thousand 148 housing sales and 18%. According to sales numbers, Istanbul was followed by 11 thousand 497 housing sales and Ankara with 9% share, Izmir with 7 thousand 159 housing sales and 6% share. According to the index data, as of the end of May, the value increase in housing sales prices in Istanbul was 210%, the average sales price per square meter is 15 thousand 775 TL, the average housing price is 1 million 892 thousand 40 TL. Housing prices in Ankara have increased 151% in the last year, the average sales price per square meter is 6 thousand 712 TL, the average housing price is 905 thousand 175 TL. In Izmir, the annual value increase is 166%, the average housing square meter sales price is 12 thousand 135 TL, the average housing price is 1 million 577 thousand 30 TL.

According to Endeksa data, when the first 30 provinces with the highest housing sales in May were evaluated, the provinces with the highest annual value growth were Antalya, Istanbul and Mersin respectively. Housing prices in Antalya increased by 210% in the last year, the average sales price per square meter of housing is 13 thousand 351 TL, the average housing sales price is 1 million 735 thousand 500 TL. Annual value increase in Istanbul by 209%, average housing square meter sales price 15 thousand 775 TL, average housing sales price 1 million 892 thousand 40 TL, Mersin annual value increase 194%, average housing square meters sales price 7 thousand 907 TL, average housing sales price 1 million 186 thousand 50 TL.

Evaluating the data, Endeksa Co-Founder and General Manager Görkem Ögüt said, “Residential sales have doubled compared to May last year. While housing sales continue to increase, the share of new housing in total sales continues to decline. Due to the increase in construction costs, the inadequacy of housing supply and the rapid rise in prices, the housing market has now begun to spin on second-hand housing. Although house prices increased rapidly, depreciation periods had fallen considerably due to rising rents in the recent period. This, in turn, was triggering investment home buying behavior. We will see together how much the effect of recent rents adjustments will have on depreciation periods and price increases.”