What is happening in the Turkish housing market? Why is real estate in Turkey becoming more and more expensive? What should we pay attention to when buying apartments in these economic conditions? There are answers to these and some other questions on the website https://turk.estate/en/.
Price dynamics in 2021
By mid-2021, there is a unique situation in the Turkish housing market: the price of real estate has increased to 30%. This fact should not be overlooked. What is the reason?
30% growth is a figure in the national currency, which has decreased by 15% over the year. The indicator in the currency is less – about 8%, for real estate, which is popular with foreigners (in Istanbul and on the Mediterranean coast). The most active buyers in the Turkish housing market are citizens of Iran, Iraq, Russia, and Afghanistan.
Examples of price growth
Let’s compare the indicators of 2021 and 2019. In 2019, the average price of apartments in Mahmutlar was $28-30 thousand. In 2021, similar housing costs about $40 thousand. Thus, apartment prices have increased by 46% in two years.
Those who are going to buy property in Turkey should also pay attention to the additional expenses. The purchase and sale tax is about 18%.
The main reasons for the price growth
The main factors of the rise in housing prices are:
- Land appreciation;
- Rising prices for the cost of construction – construction materials have risen in price both in lira and in foreign currency, and labor costs have also increased.
Experts predict another price increase caused by inflation. Sellers of apartments and houses practically do not participate in the current situation.
Currently, it is almost impossible to negotiate a discount with them, not to mention a more significant price reduction. The owners are well aware of the demand for housing and try to benefit from it.
As for developers, they are more open, but only for those buyers who are willing to make a full payment or pay most of the money at the initial stage – more than 50%. They give installments without problems. The installment plan applies to the entire construction period. If the residential complex has already been built and put into operation, you can count on installments of no more than three to four months.
If you need a longer term, you can get a mortgage. However, its conditions have changed. Previously, the borrower could count on 50% of the cost of housing, but now banks can issue mortgage loans at no more than 30-40% at 8%.
Turk. Estate helps clients purchase a property in Turkey
Find your dream apartment in Turkey on the Turk.Estate website. Here are collected various properties in the most well-known Turkish cities from proven homeowners and trustworthy local developers. You can always ask the company’s manager about purchasing an apartment in Turkey.