The housing market in Turkey, which until recently was in a huge frenzy – it reached the point of panic and proposals to ban foreigners from buying real estate – experienced “the most diverse decline since July 2021”.
Housing sales, according to data presented by the Turkish Statistical Office TUIK, decreased by 44.4% in June compared to June 2022. This is the biggest sharp annual decline, according to Turkish experts. We can say that the overheated housing market in Turkey has fallen. The reasons are obvious: everything is rapidly becoming more expensive in Turkey, including housing and its prices are becoming completely uncompetitive.
At the same time, a separate trend was noted – foreigners, who scared the Turks so much, began to buy real estate in Turkey less often. In July, real estate sales fell by almost 70% compared to the same month last year — foreigners bought only 2,625 real estate units. However, in the total volume of sales, the share of real estate purchases by tourists remained unchanged — slightly more than 3%. Favorites – Antalya (1,004 houses), Istanbul (760 houses), and Mersin (223 houses) remained the same.
The reason is simple – prices. Over the year, real estate prices have almost tripled. At the same time, the most popular cities among foreigners increased the price the most. In Antalya and neighboring cities, the increase in value was 195%, in Izmir it exceeded 170%, and in Istanbul – 154%.