Housing prices in Turkey increased by 34.7% in the last year

According to Indexsa.com data, as of end of January, a year value increase in housing sales prices across Turkey was 34.7%, while the average housing square meter sales price is 2 thousand 964 TL, the average housing price was 385 thousand 320 TL, while the return period of housing investment was 20 years. In housing sales, Istanbul had the highest share with 13,666 housing sales and 19.4% share. According to the number of sales, Istanbul was followed by Ankara with 6 thousand 635 housing sales and 9.4% share, 4 thousand 63 housing sales and Izmir with 5.8% share. The highest value increase in the provinces where the most housing sales took place in Izmir.

One year value increase in housing sales prices in Istanbul is 24.2%; average housing square meter sales price is 4 thousand 372 TL, average housing price 494 thousand 36 TL, and the return period of housing investment is 23 years. One year value increase in housing sales prices in Ankara at 29.5% level, average housing square meter sales price 2 thousand 297 TL, average housing price 298 thousand 610 TL, return time of housing investment 19 years. In Izmir, housing sales prices increased by 34.9% in the last 1 year, the average housing square meter sales price is 3 thousand 890 TL, the average housing price is 486 thousand 250 TL, the return time of housing investment is 23 years.

According to the analysis of the Endeksa, the highest annual value increases in 30 provinces where the most housing sales took place, Muğla, Aydın and Antalya respectively; the provinces with the highest housing sales prices Mugla, Istanbul and Izmir. Housing sales prices in Muğla increased by 68.1% in the last year, the average sales price per square meter of housing is 7 thousand 188 TL, the average housing price is 931 thousand 148 TL, the return period of housing investment 29 years. Annual value increase in housing sales prices in Aydın level of 52.9%, average housing square meter sales price is 3 thousand 765 TL, average housing price 522 thousand 760 TL. In Antalya, the annual value increase in housing prices is 52.7%, the average housing square meter sales price is 3 thousand 559 TL, the average housing price 440 thousand 250 TL.

In January, housing sales across Turkey fell by 37.9% compared to the same month last year and 33.4% compared to the previous month, amounted to 70,000 587 units. Mortgage housing sales dropped 74.6% compared to the same month last year, 10,000 732, and housing sold for the first time dropped 38.2% compared to January last year and reached 22,268. Loan housing sales accounted for 15.2% of total housing sales, and zero housing sales accounted for 31.5 of total housing sales.

Evaluating January data, Indexsa.com Founding Partner and General Manager Görkem Öğüt said “There has been a decline in housing sales rates for the last 5 months with increasing interest rates. This decline continued in January, and the number of housing sales amounted to 70 thousand 587. When we look at the value increases in the last one year, we see that Muğla, Aydın and Antalya are the head of the 30 cities where the most housing is sold. In this we can say that along with the pandemic there is an impact of the increase in demand for summer areas. Because consumers now want to live in places where the population is less and more intertwined with nature. With the increase in the rate of remote work, we can say that the escape to the cottage areas began. Looking at housing sales prices across Turkey, we see that prices have fallen since mid-2018 have been rising since September 2019. We do not expect a fall in housing prices in the coming period due to the fact that housing stocks have fallen and new housing production costs have increased. Despite the decline in housing sales rates in January, I think the sector will recover and close the year well,” he said.

Housing sales price and value change in 30 provinces where most housing sales took place