The Turkish real estate landscape has proven to be a lucrative arena for capital growth, with property investors experiencing a twofold increase in their investments within a mere span of two years.
Astute investors who entered the market in March 2021 by acquiring residential properties witnessed their holdings escalate in value twofold. This meteoric rise in property valuation has been especially pronounced during 2022, as the average house prices across Turkey surged by an impressive 75% when measured in US dollar terms.
The distinctive approach of the Turkish central bank, characterized by an unorthodox monetary policy, became a pivotal factor in this paradigm shift.
Rather than resorting to conventional measures such as hiking interest rates to curb demand amidst mounting inflation, the central bank adopted an alternative course by drastically lowering interest rates. This maneuver led to a concomitant surge in hyperinflation, with the annual consumer price index incrementally nearing triple-digit figures. The ensuing transformation under the stewardship of the newly appointed central bank chief saw a reversal of the bank’s policy stance. Subsequently, inflation, as per Turkstat data, decelerated to 48%.
The depreciation of the Turkish lira emerged as a pivotal catalyst, rendering Turkey an alluring hub for individuals transitioning to remote work arrangements following the global pandemic. With compensation denominated in robust currencies such as the US dollar, euro, or British pound, juxtaposed against the backdrop of living expenses priced in lira, international migrants to Turkey found themselves in an advantageous position.
An analysis conducted by an online property hub Housearch.com estimated the cost of living in Antalya, replete with its scenic beaches and coastal allure, to range between just $1,000 for budget-conscious individuals and $2,000 for those seeking a premium lifestyle, on a monthly basis.
Renting a one-bedroom apartment near the sea in Aksu area costs just around $300 per month, while rents in a high-end part of Konyaaltı or Muratpaşa areas can reach $950.
Average monthly food expenses range from $400 to $600, if you do not cook at home every day and eat out in restaurants and pubs.
According to Housearch.com, a monthly pass for Antalya’s public transport costs just $25. Taxis in Antalya are quite affordable too – the average rate is $0.50 per kilometre or $3.35 per hour.
Official statistics underscore a noteworthy 15.2% surge in foreign property acquisitions during the standalone year of 2022.
While a substantial portion of these transactions were attributed to Russian buyers seeking alternatives to European real estate investments, market analysts proffer a consensus that the upward trajectory of property prices is poised to endure. While the foremost urban locales such as Istanbul, Izmir, and Bodrum may experience a moderation in their growth rates, as suggested by rental multipliers, several coastal destinations retain substantial potential for appreciation.
A discernible trend is emerging as purchasers increasingly gravitate toward waterfront localities, encompassing destinations like Kusadasi, Kalkan and Antalya. The demand for coastal properties has observed a pronounced surge since the onset of the pandemic, with seismic events in parts of Turkey failing to impede the upward trajectory of property transactions. The re-election of President Recep Tayyip Erdogan has contributed to the removal of uncertainties, thereby further invigorating foreign investors’ confidence.
Buoyed by these developments, real estate developers are experiencing a sense of optimism, with international investment firms reorienting their focus toward Turkey’s property market. As housing prices outpace construction costs, driven predominantly by foreign demand, the landscape appears primed for the emergence of new development projects that stand to captivate international investors.