Why Turkey’s housing sales are on fire

A calmer political environment and a growing economy are just a couple of reasons why house sales are booming in Turkey.

Turkey continues to be one of the property success stories of Europe with house sales shooting up and buyers flocking from all over the world. With the economy heating up after COVID-19, Turkey is fast becoming one of the best prospects for property investors.

The stats certainly look positive. Prices for October rose 15% year on year. It follows on from stellar performance in Q1 in which housing prices sales rose by 30% year on year following a similar rise of 34% in Q4 2020.

Boom time

An impressive total of 137,401 houses changed hands last month up from 119,574 last year, according to the Turkish Statistical Institute. The number of foreign buyers was up during the same period by 12% to 5,893 units. Mortgage house sales in October also bounced back from a five-month decline rising 9.7% to 28,049.

Sales to foreign buyers were almost as healthy showing a 12% rise. In the first ten months of the year, house sales to foreign nationals jumped 38% to 43,372. Istanbul, predictably, took the largest share of sales to foreign buyers with a total of 2,464 units however the holiday resort of Antalya also saw good business with 385 properties. Ankara, meanwhile, came in third with 359.

Iranians are the most likely foreign nationals to buy here with a total of 1,265 houses, followed by Iraqis with 926, Russians 543, Germans 256 and Kazakhs 191.

Property hotspot

A number of factors have all merged together to make Turkey one of the hottest locations in Europe. Turkey has always been a favourite holiday destination thanks to its mixture of an excellent lifestyle, sunshine and great beaches. With people looking for sunnier retreats to in the wake of COVID, the property market is really picking up.

It is also helped by an increasingly stable political situation after the troubles of previous years, and a lucrative exchange rate which continues to make purchases in Turkey popular.

However, with more middle Eastern buyers coming into the market, the focus of foreign buyers’ attention is shifting. While the Marmara, Mediterranean and Aegean regions used to rule the foreign property scene, Middle Eastern buyers are flocking to the Trabzon province. Sitting in the Northern Eastern Black Sea Region this conservative city, offers a more familiar cultural scene and has a host of attractions such as Uxungol lake and Ayder Plateau. It is moving quickly from one of Turkey’s less exciting back waters to one of the most sought-after places in the country.

The upshot is that Turkey makes for an incredibly promising investment proposition. Demand is growing, the economy is on the up and there are some fantastic deals to be had. If you’re looking for a place in the sun which offers a decent return on investment, Turkey could be everything you want.

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