About Average House Prices in Turkey
Currently, the Central Bank of the Republic of Turkey says the average house price in Turkey is 4,054 Turkish lira per square meter. This rising cost comes on the back of dramatic moves in the real estate market, and stem from two factors. The first is a cost increase of construction materials, especially those coming in from abroad, and a surge in demand for properties in rural areas rather than urban. However, remember this is the average cost for the whole of Turkey.
Therefore, to invest wisely in Turkish real estate, drill down to regions to ensure a healthy, wise investment with much potential for capital appreciation. This is where our services become helpful. As a countrywide estate agent with offices in significant places of Turkey, including Istanbul, Bodrum, Antalya and Fethiye, our local knowledge and expertise enable us to determine what is a wise buy and what to avoid. So, let us look at what foreigners wanting to buy property need to know about regional house prices in prominent areas of Turkey.
About Average House Prices in Turkey
1: Istanbul – Hub of the Real Estate Market
Year after year, Istanbul consistently ranks as the top spot for foreigners buying property in Turkey, and it makes sense why. Despite not being Turkey’s capital, Istanbul is the hub of commerce, business, the economy, education and health. Experts say that if Istanbul were to crumble, the whole of Turkey would collapse. Rather than attracting foreigners looking for a holiday home, Istanbul attracts real estate investors who see much potential for capital appreciation over 20 years. Mass development in the European side and mega projects like the Istanbul Canal project attracted them. If we take out inflation, house prices rose by 4% year-on-year, and the average cost per square meter is now 6,312 Turkish lira per square meter.
But once again, Istanbul is such a large city, and as well as featuring budget housing, it is also home to the Bosphorus, where homes count themselves as Turkey’s most expensive. Some like the Yali houses are even the world’s most expensive houses, fetching 115 million euros. To find a budget property, head to outskirt European districts. Many developments sell at off-plan prices, providing further potential for appreciation, and long-term payment plans can often be over five years with 0% interest.
2: Izmir and a Surge in Demand
Suppose we head down from the Marmara region to the Aegean. In that case, we arrive at Izmir, Turkey’s third-largest city and another excellent example of how diverse Turkey’s real estate market is. In contrast to Istanbul, last year house prices rose a staggering 21%. The average price per square metre is now 4,911 Turkish lira. However, the city centre and surrounding coastal resorts are in the middle of a new trend. In recent years, many locals sought to get out of Istanbul, complaining of congestion. But, they still want the urban landscape, hence head to Izmir.
Additionally, Turkish people living in cities now head to small Aegean and Mediterranean coastal resorts of Turkey for more private living amid the COVID virus. As a result, there has been a higher demand for villas with private gardens and swimming pools. However, for decades, places in Izmir like Foca, Cesme and Alacati always attracted Turkish retirees or wealthy Turks who want to own a summer home there.
3: Houses in Antalya City centre
From the Aegean to the Mediterranean, let us look at house prices in Antalya city centre. Foreigners have loved this area for many decades, and it shows as Turkey’s number one destination for beach holiday packages. In addition, Antalya ranks as the number one place in Turkey for foreigners looking for a holiday home rather than an investment. The city centre breaks down into five separate districts. So naturally, the closer a property is to the sea, the higher the price per square meter, but an average cost across the district is 4000 lira per square meter.
What makes Antalya different, though, is a lack of typical urban vibes. Instead, places like Konyaalti and Lara beach, as well as the Kaleici old town, and Setur marina, ensure a steady flow of tourists for anyone looking at a buy-to-let. Antalya is also a 20-minute drive from the same name airport, with a staggering year-round flight schedule from many different countries, making it easy to get here.
4: Where are the Cheapest Houses?
So, if you are looking at average house prices with an aim to buying one, you will be pleased to know that certain districts stand out for their cheap house prices. Altinkum, over on the Aegean coast of Turkey, is also known as Didim. For many decades, this small town has attracted British property buyers hence its reputation as Little Britain. However, this lessened somewhat over five years, as the resort now sees more nationalities buying, including many German Turks. Although prices rose last year, thanks to more demand, Didim remains relatively cheap compared to other areas in Turkey. The reason being is the masses of availability.
Meanwhile, both Trabzon and Bursa on the northern coast of Turkey were late to modernise their housing markets, hence excellent prices. These two areas mainly attract Middle Eastern nationalities thanks to similarities in culture and traditions. Another place to look for cheap property in Turkey is Mediterranean Dalaman and Alanya’s Mahmutlar district. Both offer much future potential and strong tourism markets. Read more about the most affordable places to buy property in Turkey.
5: Remember Extra purchasing Costs
Although house prices are a significant factor, homebuyers should also factor in additional purchasing costs when deciding on a budget. Although the Turkish government does not insist on a lawyer, we advise that every home buyer in Turkey uses one. In addition, you will need to pay for translators, property taxes, land registry fees, notary fees, DASK insurance, and getting the utilities changed over or connected. Finally, as a rough guideline, factor in 9% of the property price for closing costs.
6: Other Things to Consider for Investment
If your main reason for buying a property in Turkey is an investment, research and local knowledge are essential. Consistently, records show that the highest increase in property values happens when the local council actively invests in infrastructure and social amenities. Additionally, with the current state of Turkish real estate, look at any investment for a mid to long term period, ideally ten years. Lastly, to rent out the property, research local rental yields. Currently, Mediterranean Kalkan, where large luxury villas are the norm, net an average of 15%, but in other places can be as low as 2%.
7: Find Property for Sale
We are Turkey Homes, a real estate investment specialist who has helped thousands of people buy Turkish real estate. To see more average house prices in Turkey and what you get for your money, see our portfolio of apartments and villas for sale. Each listing contains all information, including price, location, home features, and contact details to find out more or arrange a viewing. Alternatively, if you have any questions about house prices, or buying property in Turkey, call us today.