While housing prices in Turkey continue to rise, the pace of growth is clearly decelerating. According to experts, this presents an opportunity for investors—particularly those who are not dependent on bank financing.
Endeksa’s July 2024 report reveals that housing prices increased by 36% over the past year. However, when adjusted for inflation, the real growth rate stands at just 18%. In July alone, nominal price growth was 0.05%, with a real-term increase of 2%.
Currently, the average price per square meter is TL 26,500 (approximately $777), and the average total price for a residential property is around TL 3.44 million ($101,000). Based on these figures, the expected return on investment period is approximately 13 years.
Regionally, Ankara and Izmir experienced the highest price hikes at 38%, though when adjusted for inflation, real gains were around 17%. In Istanbul, nominal prices rose by 37%, but inflation-adjusted values actually dropped by 18%. Similarly, Antalya saw a nominal appreciation of 24%, but a 26% decline in real terms.
Gerkem Oğyut, CEO of Endeksa, notes that the current slowdown in housing price growth is more pronounced than in 2019. The rental market is also cooling. Despite the removal of the official cap on rent increases, rental prices rose by only 47%, indicating a subdued trend compared to previous years.