What will happen to real estate prices in Turkey in 2024?

On October 16, Turkey increased the minimum amount for obtaining a residence permit when purchasing real estate. Demand for housing in the country has decreased, but prices continue to rise. There are several reasons for this.

Prices are affected by developer costs. Construction materials and labor are becoming more expensive. Thus, in 2024, the minimum wage in Turkey increased by almost 50% and is now approximately $580. Plots are also more expensive, as there is less available land in Turkish cities.

Due to rising construction costs and rising exchange rates, some players left the market. Therefore, now, against the backdrop of low competition, the remaining companies dictate their own rules and prices.

The departure of a large share of players provoked a natural slowdown in the pace of construction, which led to a shortage of real estate. Thus, Turkey needs to commission 800 thousand facilities per year, but today the plan is only half fulfilled.

The authorities are now trying to curb demand artificially. In 2022, the average annual interest rate on housing loans was 18%, and in 2024 it reached 45%. But when the rate normalizes, the demand for housing and, as a result, prices will become even higher.

The rise in prices is also stimulated by the increased investment attractiveness of large developing cities - for example, Antalya and Izmir. More and more people are interested in buying real estate there.

Taking these factors into account, real estate in Turkey will continue to rise in price in 2024, and investments in it remain relevant. If you are considering real estate in this country as an asset, we at Osman Group will present you with the most liquid properties and select an option that suits your budget.

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