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Why are Property Prices Increasing in Turkey?
The biggest dilemma of foreign and even local investors these days is that why are prices of properties increasing so much in Turkey? Well there are many reasons due to which this is happening and there is so much inflation in the selling and renting price of properties in Turkey. In this context, we are going to discuss all those reasons briefly and how these investments will turn out in the near future so everyone considering buying their homes here knows all the facts and figures beforehand. Just for the information of the readers, these reasons are quite authentic and fact-checked by our senior consultant who is a Turkish licensed consultant with many years of experience. Continue reading to find out more!
Location/Area of the project:
The biggest reason of a property increasing in value is its location. A strategic area can easily build up huge volume of price for a certain project or any project in that place. For example, if you reach out a project in the most developing regions of a city, you will find that prices are increasing all year and appreciation is simultaneously more as well.
The location also becomes much more valuable for the project if it’s near public transport or within walking distance from it (i.e. Metro station, subway). Districts such as the ones connected to the main highways Tem, E5, E6 etc are also considered strategically correct and make the appreciation and selling price much higher but they are still developing areas. If you consider city center with all the metro stations within 10 minutes walking distance you will find a booming price.
Increasing Rate of Construction Material used:
So there is another reason why the selling price of properties are increasing, which is that overall the economy has been disturbed since dollar has increased and it made every single thing double the price from basic items like food to the most important aspect of properties which is the construction material.
For example concrete, wood, steel, ceramic all these are construction materials and are used in bulk when building properties. Now there prices have increased to double the amount then before making it less profitable for the developer of the project if he/she sells the houses in same price as before. So if the material used is added in the selling price that’s what you have to pay for.
Local Turkish buying more Property:
A few years ago, things were not like they are now in Turkey. Traditions are rapidly changing here as more and more foreigner culture is being adopted and people like to have their own place now rather than following the old school ways to live with your parents even after marriages. Now people like to buy their own house or rent one out after their marriage, it’s like a new life and new home altogether for them.
This has made more sales than ever in recent years of real estate market especially by local Turkish people who wanted to settle down with their partners in their own homes. Joint family system is almost rare now especially in Istanbul and the most booming market is in this city, so the inflation in prices is due to this reason as well. Even during the pandemic, Turkish people got married and in humungous numbers. If they didn’t invest much in their wedding, they invested in their new homes making it more interesting.
Lesser Projects in Future:
Now it’s a prediction that the increasing rate of properties is not going to go down anytime soon because construction companies are building projects slowly and it takes 2-3 years to finish a certain housing complex and investors are never ending. So now only compact projects are being considered these days so they can finish in time and investors can take them quickly but this has also made the demand increase and ultimately the selling and renting price.
So many locals and foreigners are looking for properties that it has made the price go extremely up like the shift in demand curve seen in economy. There will be a lesser supply in stocks of the projects but only the investors with higher budget will be able to buy them, this is all the very reasons buying property in Turkey is not possible with low budget. Not only the selling price is included in buying the property but you have to pay the one-time tax and pay title deed government fees with it so in total you have to be considerable in terms of investment.