Turkey’s Housing Market In February 2024 With Foreign Investment
Turkey’s Housing Market Growth In February 2024 With Foreign Investment
Turkey’s housing market has displayed notable resilience and growth in February, showcasing a substantial growth compared to the same period last year. Despite facing challenges like natural disasters and fluctuations in foreign investment. The real estate sector had an increase of 17.3% housing sales compated to last year. In this article let’s explore the recent trends shaping Turkey’s real estate landscape.
Rising Housing Sales Data
In February, Turkey saw a 17.3 percent increase in housing sales compared to last year, totaling 93,902 transactions. Istanbul led with 16,344 sales (17.4 percent), followed by Ankara with 8,300 (8.8 percent), and Izmir with 5,168 (5.5 percent). On the other hand, Ardahan, Tunceli, and Bayburt had the fewest sales, with 18, 45, and 51 houses sold, respectively.
Fluctuations in Turkey’s housing market from February 2013 to February 2024.- Generally upward trend until 2020 peak (118,753), followed by a drop in 2021 (81,222).
- Slight recovery in February 2024 with 93,902 transactions.
- Factors: Economic conditions, government policies, and events like COVID-19
Growth In Earthquake Hit Areas
The devastating earthquake that struck Turkey’s disaster-prone provinces last year had a profound impact on housing sales in those regions. However, February’s data reveals a significant turnaround, with some areas experiencing exponential growth. Provinces like Adıyaman, Hatay, and Osmaniye witnessed staggering increases, indicating a strong recovery trajectory.
▪ Housing sales in the January-February period decreased by 2.0% compared to the same period last year, totaling 174,210 transactions.
First & Second Hand House Sales
In February, first-hand house sales in Turkey surged by 21.8 percent compared to the previous year, totaling 28,594 transactions, which comprised 30.5 percent of total house sales. Throughout January and February, first-hand house sales reached 53,857 transactions, marking a 5.6 percent increase from the same period last year.
On the other hand, second-hand house sales also saw an uptick in February, rising by 15.5 percent to 65,308 transactions, constituting 69.5 percent of total house sales. However, over the January-February period, second-hand house sales experienced a slight decline of 5.0 percent compared to the previous year, totaling 120,353 transactions.
Analysis Of Mortgage Sales
In February, mortgaged house sales in Turkey dropped by 49.1 percent compared to the previous year, reaching 8,827 transactions, representing 9.4 percent of total sales. From January to February, mortgaged house sales decreased by 56.1 percent to 14,742 transactions. Notably, first-hand sales constituted a significant portion of these transactions.
Conversely, other housing sales surged by 35.7 percent in February, totaling 85,075 transactions, which accounted for 90.6 percent of total sales. Over the January-February period, other housing sales increased by 10.6 percent, reaching 159,468 transactions.
- Mortgaged house sales experienced a significant decline, constituting a smaller portion of total sales.
- Conversely, other housing sales showed notable increases, dominating the market share.
Foreign Investment Overview
In February, Russians purchased 395 houses in Turkey, leading the pack in foreign property ownership. Following closely were Iranian citizens, who bought 200 houses, followed by Iraqi citizens with 112 houses, and Ukrainian citizens with 105 houses.
Key Highlights:
- Surging Sales: Housing sales in Turkey jumped by 17.3% in February, reaching a total of 93,902 units compared to the previous year.
- Post-Earthquake Recovery: Provinces hit by last year’s earthquake, like Adıyaman and Hatay, experienced remarkable growth rates, signaling a recovery trend.
- Urban Dominance: Istanbul retained its lead in housing sales with 16,344 units sold, followed closely by Ankara and Izmir.
- Shifting Trends: While mortgage sales declined, there was a significant uptick in first-hand house sales, making up 30.5% of total sales.
- Foreign Investment Fluctuations: Housing sales to foreigners decreased by 44.9% in February, with Russian citizens being the most active buyers.
- Challenges Ahead: Stimulating demand and improving access to financing, particularly in mortgage sales and foreign investment, remain key challenges.
- Resilience Strategies: Efforts in urban planning and infrastructure resilience are crucial for mitigating the impact of natural disasters and sustaining market growth.