Turkish Real Estate Market Overview: A 2023-2024 Analysis

Overview of the 2023 Turkish Housing Market

The Turkish housing market went through a big shift in 2023. Total sales hit 1,225,926 units. That's a 17.5% drop from the record highs of 2022. This change happened because the economy tightened and living costs went up. But the market is still very active. Local urban projects and steady interest from abroad keep things moving.

If you need a closer look here, see Why the Turkish Housing Market is Booming.

Regional Performance: Istanbul, Ankara, and Izmir

Istanbul remains the heart of Turkish real estate. In 2023, the city saw 198,739 sales. That makes up over 16% of all deals in the country. Ankara came next with 114,432 sales. Izmir followed with 65,465.

If you need a closer look here, see Regional Powerhouses: Istanbul, Ankara, and Izmir.

At the other end, eastern cities like Ardahan and Hakkari had the fewest sales. People still want to live in the "big three" cities. These hubs offer better jobs, better schools, and a chance for your property to grow in value over time.

Mortgage Rates and the Turkish Housing Market

Mortgage sales crashed in 2023. The Central Bank raised interest rates to 45% to fight inflation. So, borrowing money became too expensive for most people.

Mortgage Sales Data

Mortgage deals dropped by 36.6% during the year. Buyers only used loans for 177,748 units. By December, the situation was even tougher. Sales fell by a massive 72.3% compared to the year before. Now, cash buyers rule the market. This setup helps wealthy investors but makes it hard for middle-class families to buy a home.

Non-Mortgage Transactions: Cash is King

Since bank loans are hard to get, cash is king. Buyers bought 1,048,178 properties using direct payments or private deals in 2023. Even though this number dipped by 13%, it shows there's still plenty of money in the market. Many people now use installment plans from developers instead of bank loans.

International Investment and Foreign Buyer Trends

Fewer foreigners bought property in 2023. Sales to international buyers dropped by 48.1% to 35,005 units. Why? The minimum investment for citizenship rose to $400,000. Also, residency rules got much stricter.

Top Nationalities Buying in Turkey

• Russia: They were the top buyers again. They want a safe place for their money and a new lifestyle.
• Iran and Iraq: These groups still show strong interest in Istanbul and Ankara.
• Popular Destinations: Istanbul led with 11,229 sales. Antalya followed with 12,702 units, and Mersin was also a top pick.

First-Time vs. Second-Hand Sales

Sales for new homes fell by 17.5% last year. Used homes make up most of the market, and those sales also dropped by the same amount. Building new houses costs more now because of labor and material prices. This keeps new apartment prices high. So, many buyers look at older homes where they can bargain more.

Gender and Ownership Demographics

Men bought about 56% of the houses in 2023. Women bought nearly 33%. Some couples bought homes together. It's clear that women are playing a bigger role in the Turkish economy. They're often the main decision-makers when a family buys a home.

Economic Drivers and 2024 Market Outlook

Economic barriers caused the 2023 dip, not a lack of interest. High inflation and building costs kept prices high. But by early 2024, price growth started to slow down. You might find that now is a good time to buy.

Sellers are more open to deals because there are fewer buyers with bank loans. If inflation drops and rates go down, we expect a big jump in sales by late 2024. For now, the Turkish housing market offers great value for those with cash looking for long-term gains.

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