Who to sell to? Turkish developers flee due to collapse in real estate market: new anti-record.
According to TürkStat data, the proportion of households owning their own homes decreased from 60.7% in 2022 to 56.2% in 2023, while the number of renters increased.
Property sales to foreigners fell by 34.8% compared to last year, and now their share is only 1.9%.
Let us recall that in 2022, foreigners purchased 4.5% of the total volume of real estate. Türkiye has not seen such a collapse in the housing market in the last seven years.
Reasons for the market decline:
- The key rate has increased to 50% over the past year, making mortgages unaffordable for foreigners. Banks have tightened credit conditions, which is why even Turkish citizens are reluctant to take out mortgages, and there are not many who want them.
- Half of foreign investors have left the country and switched to other markets where profit growth is possible.
- Restrictions on issuing residence permits to foreigners. New law on short-term rentals makes it more difficult to rent out housing and receive passive income from real estate.
Who is buying housing now and what kind of housing is in demand?
- In Alanya, small and large businesses are now buying, who could not afford real estate in 2022, but now, thanks to falling prices, they see profitable opportunities.
- Also actively buying are officials and businessmen from Istanbul, Ankara and Konya who want to buy a summer house by the sea.
- Foreigners who follow the property market can now buy larger or higher-class housing for the same price as before.
- Russians who need a “spare” Turkish passport to conduct business and move freely are also actively buying them.
Old investors who have successfully bought and sold property in Turkey many times now see an opportunity for profitable investments.
Comfort-class housing in complexes with permission for short-term rental and housing on the first coastline, as well as in top locations such as Cleopatra Beach, is popular.
Turkish developers have begun to turn their attention to other popular destinations such as Bali, Thailand, the UAE, Spain, Kazakhstan and Georgia, where demand for housing is higher. They have already begun to compete with local construction companies and buy up land in these regions.
However, I believe that the situation will soon change and luck will return to Turkey. Property prices will become attractive again, and Thailand and Bali may lose their appeal due to high prices and legal restrictions on land ownership.
Türkiye will always be a popular destination and prices will start to rise again, so if you've been waiting for a signal to buy, now is the time.
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In the comments, write whether you bought or sold real estate this year in Turkey or in another country?
If so, how easy was it? Were you able to get the amount you wanted from the deal? Did you like the article?