Property Prices in Istanbul 2024

Latest Updates on Property Prices in 2024

Property prices, especially in major cities like Ankara, Istanbul, and Izmir, have continued to rise in 2024. The average home price in Turkey has surpassed the one-million Turkish lira mark nationwide, reaching up to 3 million Turkish lira in major cities. This upward trend, which began during the pandemic, appears to be accelerating.

In 2024, Turkey's real estate market maintains its upward trajectory, with the average home price currently slightly exceeding 3 million Turkish lira, equivalent to around 40,000 Turkish lira per square meter. It's expected to stabilize in line with inflation. However, according to Nazmi Durakbay, the head of the Istanbul Builders Association, housing prices will only decrease if land costs drop.

Touristic areas like Istanbul, Izmir, and Antalya remain popular choices for both local and foreign buyers, particularly neighborhoods like Kadikoy, Askudar, and Atasehir in Istanbul; and Sancak, Karsiyaka, and Bornova in Izmir.

 Price Predictions for the Year: Will They Drop?

Istanbul has seen significant demand for its properties in recent years, driven by its leading status in Turkey and a substantial increase in population without corresponding supply. Despite limited purchasing power, demand has remained high.

Factors contributing to rising prices include general inflation, increased land values due to high demand, and the general rise in construction costs. In 2024, the Turkish government has demonstrated economic resilience through its ability to reduce inflation rates, stabilize the Turkish lira exchange rate, and recover from sudden spikes influenced by inflation and earthquakes. With political stability post-presidential elections and President Recep Tayyip Erdogan's successful leadership, economic growth, inflation rates, and interest rates remain primary concerns influencing real estate trends over the next five years.

High inflation rates can directly impact costs and, consequently, property prices. High-interest rates could make credit purchases difficult, leading to decreased demand and potentially lower prices. Several factors, such as decreasing construction costs, increasing purchasing power, and rising property inventory, will influence property price forecasts and determine the full impact of these factors.

According to a Turkish newspaper, decreasing construction costs and increasing purchasing power could return the sector to its former glory in 2024, potentially positively affecting property prices. The market has also seen a 21% increase in listed properties for sale in Turkey, which may also impact property prices in 2024.

In conclusion, analysts believe that all these factors will create a balance between supply and demand, pushing prices towards stabilization with a possibility of a slight increase in the property market in the near future.

What Should I Do with My Property in Istanbul?

 Sell the Property

Selling your property in Istanbul could be a lucrative option, especially given the current high demand and rising prices. It might be the right time to capitalize on your investment and secure a good return.

 Rent Out the Property

If you prefer a steady income stream, renting out your property could be an excellent choice. With high demand for rental properties in Istanbul, you can potentially generate a stable income while retaining ownership of your property.

 Keep the Property as Is

If you believe that property prices will continue to rise, holding onto your property might be a wise decision. However, it's essential to consider factors like maintenance costs and potential rental income if you decide to keep the property vacant.

The Turkish property market is dynamic and complex, influenced by various local and global factors. In 2024, the market shows signs of flexibility and potential recovery. Whether you decide to sell, rent, or keep your property in Istanbul depends on several factors, including your financial goals, market trends, and investment strategy.

 

Overview of the Turkish Real Estate Market in 2024

 

 

The Turkish real estate market is expected to reach a value of $7.81 trillion USD by 2024. The residential sector dominates this market, with the residential real estate market in Turkey estimated at $99.05 billion USD in 2024. It is projected to reach $168.11 billion USD by 2029, with a compound annual growth rate (CAGR) of 11.16% during the forecast period (2024-2029).

 

Selling Properties in Turkey

If you're considering selling your property, it's essential to determine how you'll use the profit from the sale. For instance, selling a house might be suitable if the proceeds will be used for a new investment. However, the increasing property prices make holding onto the property more profitable.

Understanding the dynamics of Turkey's real estate market is crucial. For example, housing prices in major cities are significantly rising, offering substantial profits upon sale.

Sellers should be aware of capital gains tax on the profit from the sale, calculated based on the difference between the selling and purchase prices. The tax rate varies depending on the duration of property ownership. It's advised not to sell the property within 5 years of purchase to avoid capital gains tax.

 

 Renting Properties in Turkey

If you're considering renting out your property, you should consider the potential rental income in Turkey, especially in holiday destinations like the Aegean and Mediterranean coasts. Due to high demand in these areas, homeowners can generate significantly higher rental income, making renting a more attractive option.

Rental income in Turkey is not subject to value-added tax (VAT), making it an appealing option for property owners. However, rental income might be subject to income tax, and property owners should consult a tax advisor to understand the implications.

 

 Holding onto Properties

Keeping the property as is might also be a viable option, especially if it's located in a high-demand area. With expected rising property values in Turkey in the coming years, holding onto the property could lead to significant capital appreciation.

Deciding whether to sell, rent, or hold onto a property in Turkey depends on various factors, including the property's location, the owner's financial situation, Turkish real estate market trends, and personal financial goals. Regardless of the chosen investment action, the Turkish real estate market in 2024 offers promising opportunities for property owners. Consulting a real estate agent and getting professional advice to make the best decision about your property is usually the best approach.

 

 Apartment Prices in Istanbul Compared to European Countries

 

 

Istanbul, Turkey's largest and most populous city, has a housing market reflecting this status. Apartment prices in Istanbul vary significantly across different parts of the city, depending on the size, age, and location of the apartment.

 Apartment Prices in Istanbul

 

Generally, apartment prices in Istanbul range from 3,800,000 to 11,000,000 Turkish lira for medium-sized spaces. However, these prices can vary depending on the neighborhood, size, and other features. The average price per square meter for a luxury apartment is estimated at around 40,000 Turkish lira. For example, a luxury apartment in the city center might cost more than an apartment in suburban areas.

 

Comparable Prices in European Countries

Apartment prices in Europe vary greatly by country and city. For instance, the average price of listed apartments for sale in Germany is around $324,000 for a medium-sized apartment, equivalent to $5,000 per square meter. Home prices in Sweden have risen by 14% over the past 12 months, with an average of $508,000 for an apartment in Stockholm. The price per square meter in Switzerland exceeds $10,350. Belgium is among the few countries with lower costs compared to other European countries.

 

Apartment Prices in Istanbul Compared to Dubai

 

Both Istanbul and Dubai are popular destinations for real estate investors worldwide. Apartment prices in both cities vary significantly based on location, living spaces, and floor plans. However, generally speaking, apartment prices in Dubai are higher compared to Istanbul. Therefore, it's important to carefully examine current offers in both markets to choose the option that suits your budget and needs. Below is a comparison of prices between the two cities:

 

 Apartment Prices in Istanbul for 2024:

- New apartment in Beylikduzu: 3,000,000 Turkish lira, equivalent to $100,000 today.
- Apartment in Kartal: 8,733,000 Turkish lira, equivalent to $291,100 today.
- Apartment in Esenyurt: 2,833,000 Turkish lira, equivalent to $94,433 today.
- New apartment in Kadikoy Erenkoy: 11,750,000 Turkish lira, equivalent to $391,666 today.

These prices represent apartments in different areas of Istanbul and provide a general idea. For more detailed information on specific apartment prices for each type and area, you can refer to a detailed guide on apartment prices in Istanbul.

 Apartment Prices in Dubai for 2024:
- **Apartment in Motor City**: $138,000
- **Apartment in Dubai Marina**: $680,000
- **Apartment in Palm Jumeirah**: $5,793,000
- **Apartment in Business Bay**: $2,915,000
- **Apartment in Downtown Dubai**: $605,000

These prices represent apartments in different areas of Dubai and provide a general idea.

 

To see more aapartments in Istanbul Click here

 

 Factors Affecting Apartment Prices in Turkey

 Location:
Location is one of the most important factors determining apartment prices. Concepts like city, neighborhood, and residential complex play a significant role in determining the price. Apartments in Turkish cities that do not overlook the sea generally have more reasonable prices compared to those in holiday destinations like Ankara and Istanbul. Additionally, units close to schools, highways, shopping centers, sports centers, parks, and public gardens tend to be more expensive overall.

 Size and Number of Rooms:
The size of the apartment and the number of rooms also affect prices. Larger apartments with more bedrooms and bathrooms tend to be more expensive. Terraces, balconies, and separate kitchens add value. Additionally, apartments on lower floors generally have lower prices than those on higher floors.

 Age of the Apartment:
New apartments are generally more expensive than older ones with similar designs.

Furnishing:
If the property is furnished and equipped with appliances, its cost will be higher than a similar vacant option.

These factors play a crucial role in determining apartment prices in Turkey, and for homeowners or potential investors, this information is essential for making the right decision.

 

Featured Properties for Purchase in 2024

 Istanbul 142 Complex

- City: Istanbul
- rea: Topkapi
- Delivery Date: 31/12/2025
- Payment Method: Installment (50% down payment and the rest in 18 monthly installments)
- Property Type: Apartments
- Distance to City Center: 4.3 km
- Distance to Airport: 40 km

The project is located in a strategic area of Istanbul, specifically in Zeytinburnu. It consists of two buildings with a total of 167 apartments, ranging from 1+1 to 1+2 options, with sizes starting from 45 m2 up to 156 m2.

The project is located near a metro station on one of the main lines in Istanbul, and it's 3 minutes away from a bus line connecting European Istanbul with Asian Istanbul.

 

 

 Cheapest Apartments Available in Istanbul

Istanbul 179 Complex

- City: Istanbul
- Area: Beylikduzu
- Delivery Date: Ready
- Payment Method: Cash
- Property Type: Apartments
- Distance to City Center: 35 km
- Distance to Airport: 50 km

The project is located in Beylikduzu, one of the most important modern residential and investment areas in European Istanbul. The project consists of 4 buildings with a total of 57 apartments, ranging from 1+2 to 2+7 options, including duplex options. The sizes start from 120 m2 up to 360 m2.

The project stands out for its luxury and integrated services, and it is only 15 minutes away from Marmara Mall and 18 minutes from Torium Mall, both of which are among the largest shopping centers in the area.

 

 Is Turkey in a Real Estate Recession?

Recession occurs when supply exceeds demand, leading to a decrease in sales and rents.

Currently, there is a significant difference between the market situation in Turkey and the assumption that it is entering a recession phase due to a primary reason indicating that the real estate market needs more properties and diverse offerings.

Today, Turkey is entering a phase of prosperity and recovery. One of the highlights of this phase is the stabilization of prices and the balance of demand with the available supply in the market, leading to the revitalization of the real estate sector.

Factors such as economic recovery, government loan campaigns with favorable repayment conditions, reduced construction costs, and urban transformation projects will contribute to revitalizing the sector. In addition, interest rates, inflation, and economic growth remain of interest to economic analysts to highlight the trends of the upcoming phase in 2024.

The real estate sector, which has experienced the toughest period in the past ten years, enters 2024 with hope. Despite the economic difficulties and doubts witnessed in 2023, which negatively affected the sector, the positive developments in the economy in 2024 will help revive the sector.

Real estate has been a safe portfolio for capital owners over the past years, maintaining the real value of their money amid global inflation conditions.

In light of these developments, and according to analysts' reports, it is not expected that the real estate sector in Turkey will enter a recession phase in 2024.

 

See also Best Properties in Istanbul

 

 Is Turkey in a Real Estate Inflation Phase?

 

The real estate sector in Turkey is experiencing significant inflation, but it continues to withstand the geopolitical storm with the additional burden of inflationary pressures. Interest rates, inflation, and economic growth in Turkey remain among the main concerns of the sector in the next five years. According to analysts, if these issues become clearer, more transactions can be conducted in 2024.

The government has taken some measures to combat real estate inflation, where the Central Bank of the Republic of Turkey announced that it will raise interest rates.

According to the Central Bank's expectations, the annual inflation rate is expected to decrease to 36% by the end of the year. The country will witness a slowdown in consumer price growth starting from next year.

The change in the Consumer Price Index for January 2024 announced by TURKSTAT reached 64.86% on a 12-month average basis. Inflation increased by 6.70%.

These numbers were used to determine the rent increase rate for January 2024, where systems that determine housing rent increases by 25% continue to mitigate the effects of this inflation to some extent. This limit does not cover contracts with a duration exceeding 5 years and does not apply to commercial lease contracts.

In conclusion, 2024 brought challenges and opportunities for the real estate sector in Turkey. It was a significant turning point. This year, the real estate inflation process and the impacts of economic dynamics are the main factors that will determine investment trends in this sector.

 

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