Home prices are expected to continue rising but at a slower pace in 2024. The rapid increase in home prices that we witnessed in recent years is likely to moderate in the coming years. However, home prices are still expected to rise, albeit at a more moderate rate.

The supply of homes for sale is expected to increase. The lack of available homes for sale has been a major driver of rising home prices in recent years. However, with more homes being built and entering the market, we can expect to see some relief from supply shortages.

Mortgage interest rates are expected to rise. The Federal Reserve is raising interest rates to combat inflation, which has increased the cost of borrowing money and led to decreased demand for homes. However, in the coming years, there is expected to be a reversal in this trend, with interest rates gradually declining, potentially leading to a resurgence in housing demand.

2024 is expected to bring more stability to the housing market after a few years of tension. With mortgage rates decreasing faster than expected, home prices are likely to remain mostly stable throughout 2024. This will be good news for buyers who have been waiting for a good time to enter the market.

The increasing cost and climate change implications will also affect the housing market in 2024. Homebuyers and builders will need to consider the costs of constructing homes that can withstand climate change and extreme weather events.

 

The residential real estate market in Turkey was estimated at approximately $89.11 billion in 2023 and is expected to reach $151.23 billion by 2028, with a compound annual growth rate of 11.16% during the projected period (2023-2028).

During the COVID-19 pandemic, the decrease in interest rates led to continued activity in the Turkish residential market in 2020, with the year witnessing the highest number of home sales in history. However, the increase in interest rates led to a decrease in the share of mortgage-backed sales in the total in the first half of 2021 compared to the same period in 2020.

Turkey remains an attractive destination due to its transportation facilities, tourism, entertainment opportunities, and conference tourism. Istanbul, where Europe meets Asia, stands out as a real estate investment haven. However, the impact of rising interest rates and economic constraints resulted in declining property prices and the depreciation of the Turkish lira.

According to the Central Bank's House Price Index (HPI), house prices in Turkey grew by 32.39% on an annual basis in April 2021 and 28.56% in Istanbul. The inflation rate during the same period was 17.14%, while the Turkish lira's value decreased by 19.6% against the US dollar, with a 17.6% interest rate return on deposits for one year. The increases in house prices, which had lagged behind alternative investment instrument returns and inflation since the beginning of 2017, outpaced inflation rates and deposit interest rates in the first half of 2021, as they did in the previous year.

 

 

 

 

Turkey is the primary and preferred destination for Saudi tourists, with over seven hundred thousand Saudi tourists heading to Turkey each year. Istanbul is the first choice for any Saudi looking to invest in or visit Turkey, especially given Istanbul's magnificent charm, vast areas, historical landmarks, moderate climate, and enchanting views. Trabzon follows as a second important city for Saudi investors and property owners due to its extensive green spaces and global tourist appeal. The same applies to the capital, Ankara, and the city of Bursa.

Data from the Turkish Statistical Institute reveals that the percentage of Saudis buying homes in Turkey during the first five months of this year jumped by 79.4% compared to the same period in 2022, totaling 296 homes. This sudden surge in Saudi interest can be attributed to the improving relations between the two countries.

Earlier this year, Turkish authorities announced a significant increase in Saudi imports, and similarly, Turkey ranks ninth among Saudi Arabia's exporting countries, with Turkish exports exceeding $3 billion. This news indicates the fading of the dark cloud that loomed over the two nations and suggests that the region is moving toward prosperity under the joint influence of Saudi Arabia and

Turkey.

 

We have dedicated a full article to Saudi-Turkish relations. To read the article, click here. 

 

 

Purchasing Apartments on Installments in 2023

 

 

There is a diverse range of payment plans available for all types of properties in Istanbul. Additionally, when you buy property in Turkey, you can rent it out for additional income. When investing in Turkey, there is a high rental guarantee because the demand for rented properties in the country is high.

Buying properties on installment in Turkey has become a good option for many investors. Individuals can own the property through a deferred sales contract, known as a "contract of promise," by making only the initial down payment. The law does not specify a date for completing the payments or even a specific amount, but it is sufficient to abide by the contract agreed upon between the buyer and seller. Therefore, construction companies often attract many investors to take advantage of installment offers.

 

Steps to purchase properties on installment:

1. After contacting a specialized company and conducting a site visit to view available properties, identifying the desired property, and agreeing on the price, a symbolic initial amount is paid for reserving the property.

2. Subsequently, a date is set for signing the contract. Based on this date, the property's price, installment amounts, and duration are determined. The buyer commits to paying the due installments on the specified dates and as per the agreed-upon values.

3. The construction company also has several obligations, especially if the property is under construction. You are obliged to deliver the property ready on the specified date and in accordance with the agreed-upon specifications.

4. The buyer is given a period ranging from 7-15 days to pay the first installment. Upon completion of all installments and payment of the property's full price, ownership is transferred from the construction company to the buyer.

Contact us for the best properties with installment plans.

 

 

 

Leasing Conditions for Properties in Turkey in 2023

 

To lease a property in Turkey, you must be aware of and follow the general rules and conditions set by the Turkish government for this purpose. These rules differ from those for purchasing properties in Turkey or Istanbul and have their own procedures. Note that Turkish citizenship cannot be obtained through investment by renting properties in Turkey; you must purchase a property of a specified value.

Here are some conditions for leasing properties in Turkey:

1. Lease Period: The lease period for a property in Turkey is generally one year. However, the tenant and the landlord can consider a longer or shorter period in the lease agreement. If the tenant wishes to extend the contract, they must notify the landlord at least one month before the end of the lease.

2. Rent Amount: The rent amount for each property varies and depends on the property's location, size, and other conditions. Rent is typically paid monthly in Turkey.

3. Property Condition: The tenant should ensure the physical condition of the property and its facilities. They should also verify that the property is legal and does not have ownership issues.

4. Other Expenses: The tenant or landlord may bear other expenses such as water, electricity, gas, and general expenses. In some cases, the tenant may also be responsible for other costs, such as repair expenses and the cost of replacing damaged appliances, among others.

5. Security Deposit: The tenant must provide a security deposit, which is usually equivalent to one or three months' rent. If the tenant is late in paying rent or damages the property, the landlord can use the security deposit to cover the losses.

6. Local Laws: Each city and region in Turkey has its own rules regarding property leasing. Therefore, before renting a property, you should familiarize yourself with the relevant local laws.

 

 

 

Invest with Damas Group

                                                                         

Enhance your investment experience with Damas Group. We offer comprehensive real estate consultations, help you find the best properties that suit your needs, and provide guided property tours for you to see the properties in person. Rest assured, with Damas Group, we offer you the best investment opportunities.

With Damas Group, we solve the equation for you: the best quality at the most reasonable price. We assist you in real estate marketing and development in Turkey, handle all property purchase procedures from start to finish, and manage properties and after-sales services. We also assist clients in applying for Turkish citizenship.

Contact us at Damas Group Real Estate and request the top available offers and options, whether in Yalova or beyond. Don't hesitate to start your real estate investment journey in the Turkish real estate sector right away, as prices are favorable, offers are extensive, and the future is promising.

Contact us now.