Overview Of Türkiye’s Real Estate Market in August 2024
Overview Of Türkiye’s Real Estate Market in August 2024
In August 2024, Türkiye’s real estate market saw a significant boost, with over 134,000 homes sold. It shows a 9.9% increase compared to the same month last year. This rise reflects growing demand, especially in major cities like Istanbul, Ankara, and Izmir. These cities accounted for a large share of the sales. Despite the overall growth, certain parts of the market faced challenges.
Mortgage sales, for example, dropped, and there was a noticeable decrease in homes sold to foreign buyers. However, strong activity from first-time home buyers and robust second-hand home sales kept the market moving forward. Showing that the real estate sector in Türkiye remains active and adaptable despite shifts in buyer behavior and economic factors.
Top Performing Provinces
Istanbul led the market with 19,467 houses sold, followed by Ankara with 12,496 and Izmir with 7,044. On the other hand, provinces with smaller populations such as Hakkari (53), Ardahan (93), and Bayburt (116) recorded the lowest sales figures.
Year-to-Date Performance 2024
The year-to-date figures displays a positive picture for the overall market. With house sales for the January-August period rising by 1.1% compared to the same timeframe in 2023, reaching a total of 806,317 units. This suggests that despite some fluctuations in the market, Türkiye’s real estate sector remains strong, driven by both domestic demand and foreign interest.
Mortgage Sales Decline Despite Overall Growth
Despite the market growth, mortgaged house sales took a hit, dropping by 17.1% in August compared to the previous year, with only 13,574 units sold. Mortgage sales accounted for just 10.1% of all house sales, reflecting a significant decline in the use of this financing option. Over the January-August period, mortgaged house sales dropped by 49.8%, totaling 76,485.
However, the first sales of mortgaged houses remained steady, with 3,055 units sold in August and 18,017 in the first eight months of the year.
- Rise in Other House Sales
Contrasting the dip in mortgaged sales, other house sales, which are not financed through mortgages, soared by 14.1% in August, reaching 120,581 units. These non-mortgaged transactions made up the majority of sales, accounting for 89.9% of all house sales in Türkiye for the month. Year-to-date, these sales saw an increase of 13.2%, totaling 729,832 units.
Surge in First-Time Home Buyers
First-time home buyers played a significant role in the August surge, with 41,913 houses sold for the first time, reflecting a robust 18.7% increase compared to the previous year. First-time sales accounted for 31.2% of total transactions in August. For the year through August, first-time home sales increased by 7.5%, totaling 256,021 units.
- Second-Hand Home Sales Lead the Market
Second-hand home sales continued to dominate the market, with 92,242 houses sold in August, a 6.3% increase from the previous year. These transactions made up 68.8% of all sales in August. However, year-to-date second-hand sales saw a slight dip of 1.6%, totaling 550,296 units, suggesting a possible cooling in this segment of the market.
Sales to Foreigners Continue to Decline
Sales to foreign buyers, which have historically been a key driver of growth, experienced a sharp decline. In August, 2,257 houses were sold to foreigners, a drop of 26.2% compared to the previous year. This segment represented just 1.7% of total sales for the month. For the year through August, sales to foreigners plummeted by 40.0%, reaching 15,068 units, signaling a slowdown in international interest.
- Top Buyers Are From Russia, Iran, and Ukraine
Despite the decline, Russian citizens led the way in purchasing property in Türkiye, with 381 houses bought in August. They were followed by buyers from Iran (171) and Ukraine (161). Istanbul, Antalya, and Mersin remained the top destinations for foreign buyers, with Istanbul alone accounting for 838 of the sales to foreigners.