Real state market and houses in Turkey

Prices of apartments in Turkey increased by 10%

Apartment prices increased almost three times in İzmir and Ankara compared to Istanbul. The sale of homes grows by 55.8%, and the mortgages skyrocket by 546%.

The prices of apartments in Turkey increased by 9.92% during last December compared to the same month of the previous year, according to the latest data published this week by the Central Bank of the Turkish Republic (TCMB) and the Turkish Statistical Institute (TÜİK), which also show a vertiginous increase in mortgages thanks to the drop in interest rates, as the one announced again this Wednesday, of 50 basis points.

On a monthly basis, the increase in housing prices in the Eurasian country was 1.41% compared to the previous month (November 2019). In November the year-on-year increase in the cost of flats had been 7.2%, with an increase of 1.09% compared to the month of October.

In Istanbul, the most populous city in the country with about 16 million inhabitants, the price of housing experienced an increase of 3.7% during last December compared to the previous year, according to statistics.

However, in the city of İzmir, located on the Aegean coast and the third most populous in the country, the cost of housing increased by 10.26% that same month; on the other hand, in the capital, Ankara, the price increase was very similar and the flats rose 10.13%.

Mortgages go off

On the other hand, the latest report published by the Turkish Statistical Institute points to an increase of 55.8% in the sales of homes during the past month of January (compared to January 2019), the largest ever recorded during the beginning of the year, which predicts a very promising 2020 for the real estate sector.

In total, 113,615 homes changed its owners during January, compared to the 72,937 that were sold in the same month of 2019. Istanbul was once again the main driver of the real estate market, monopolising by itself some 21,200 properties sold, which is equivalent to 18.7% of total sales recorded in January.

Likewise, the sale of properties to foreigners also increased significantly last month to record an increase of 23%; in total there were 3,907 properties sold in January to non-Turkish citizens, which also means the best month of January for homes sales to foreigners that has been ever registered.

TÜİK also points out another important fact in its report: the sales of homes financed through mortgages increased by no less than 546% in January to add up to 42,000, which represents just over 37% of the total homes sold that month. This is the largest sale of apartments by mortgage for a month of January in Turkey in the last 8 years, and is due to the fall in interest on mortgage loans.