The Turkish real estate market faced a challenging situation in 2023, witnessing a significant decrease in property sales compared to previous years for various reasons. The most prominent factors were the presidential and parliamentary elections that took place in the country. Following these events, the Central Bank’s decisions to raise interest rates to record levels contributed to diminishing investors’ appetite, especially among locals who preferred saving their money in banks. Foreign investors were also influenced by election campaigns and the soaring prices in Turkey overall.
What to Expect for Turkish Real Estate in 2024?
It is clear that the new year will be favorable and promising for those looking to buy, but somewhat challenging for those intending to sell. According to my analysis, the year can be divided into two halves. The first half, which will witness local elections (municipal elections) at the end of March, is expected to be influenced by the significant price drop in the market. Developers are still inclined to offer somewhat comfortable installment plans.
The second half is anticipated to see a stabilization in the market and a decrease in property prices due to the expected austerity policy from the government entering a new four-year election-free term. Local banks are also expected to start lowering interest rates, which had surpassed 50%, leading to a shift of investments away from banks toward other sectors, with real estate being one of the primary investment sectors in Turkey.
Should You Buy Property in Turkey in 2024?
Investors always look for opportunities to acquire properties at the lowest levels for profitable real estate investments. We are currently in the real estate opportunity season in Turkey, which is expected to end by the mid-year. It is strongly recommended for those interested in Turkish real estate to monitor opportunities during the first half of this year and consider purchasing now due to the temporary stagnation and price decrease.
The real estate market is expected to revive towards the end of the current year, and in the long term, 2025 and 2026 are likely to witness new record highs in property prices in Turkey.
Which is Better: Buying Land or Commercial and Residential Properties?
Generally, the rise or fall of real estate affects both land and residential/commercial properties to varying extents. However, investing in land requires a patient investor as it is a long-term investment. If you prefer short-term investments, focusing on residential or commercial properties in general is advisable.