Turkish Real Estate Market Overview: A 2023-2024 Analysis

Explore the intricacies of Turkey's real estate market in 2023. Understand trends in domestic and international sales, mortgage dynamics, and gender-based property ownership.

real estate market in turkey in 2023

Introduction to Turkey’s Real Estate Dynamics

The real estate market in Turkey has experienced remarkable shifts in 2023, showcasing significant trends in both domestic and international sales. The dynamics of this market reflect broader economic patterns and consumer behaviors, offering insights for investors, policymakers, and potential homeowners.

Annual Sales Statistics: A Comprehensive Breakdown

In 2023, Turkey witnessed the sale of 1,225,926 residential properties. This figure marks a significant decrease of 17,5% compared to the previous year. Istanbul led the sales with 198,739 units, followed by Ankara and Izmir with 114,432 and 65,465 units, respectively. Conversely, Ardahan, Hakkari, and Tunceli recorded the lowest sales.

The December Surge: A Monthly Perspective

December 2023 alone saw 138,577 property sales across Turkey, a decline of 33,4% compared to the same month in the previous year. In this month, Istanbul once again dominated the market, followed by Ankara and Izmir.

Mortgage Trends: A Critical Analysis

The Turkish real estate sector in 2023 witnessed a significant decrease in mortgage-financed home purchases. This downturn in mortgage sales can be primarily attributed to the steep increase in interest rates in Turkey. Following the recent central bank meeting, policy interest rates soared to 45%. This substantial hike in rates has severely restricted people’s access to credit, making it increasingly challenging for prospective buyers to secure mortgage loans for home purchases. As a result, the number of mortgage-financed purchases in December plummeted to just 6,042 units, marking a dramatic 72,3% decrease compared to the previous year. Over the course of 2023, the total mortgage sales were recorded at 177,748, which is a significant drop of 36,6% from the figures in 2022. This trend underscores the profound impact of monetary policy and economic conditions on the housing market and consumer behavior in Turkey.

Non-Mortgage Sales: Understanding the Majority

Non-mortgage transactions in December totaled 132,535, a 28,8% decrease from the same period last year. Throughout 2023, these transactions amounted to 1,048,178, marking a 13,0% decrease.

First-Time vs. Second-Hand Sales: A Comparative Study

In December, first-time home purchases amounted to 51,243, a 34,2% decrease year-over-year. Similarly, second-hand sales in December reached 87,334, a 32,9% decrease from the previous year.

International Buyer Trends: Who’s Investing in Turkey?

In 2023, there were 35,005 property sales to foreigners, a 481% decrease from the previous year. Russian citizens led these purchases, followed by Iranians and Iraqis. In December, 2,064 properties were sold to foreigners, with Istanbul, Antalya, and Mersin being the most popular destinations.