Endeksa, which offers real estate value calculations using big data analysis and artificial intelligence methods and thus allows users to sell real estate safely, evaluated the 2023 December housing sales data announced by TUIK. According to Endeksa data, house prices in Turkiye gained 84% in value in one year. The average housing price in Turkiye was ₺3 million 92 thousand 700 and the square meter sales price was ₺23 thousand 790.
Although December witnessed a new activity in housing sales, there was a 33% decrease in housing sales compared to the previous year. According to Endeksa data, the average return period for a residential investment made in Turkiye was approximately 15 years.
42 Thousand 338 Houses Sold in Three Major Metropolises in One Month
The city where the most houses were sold in December 2023 was Istanbul with 23 thousand 714 sales and a share of 17%. Ankara came in second place with 11 thousand 458 houses and 8% share, and Izmir came in third place with 7 thousand 166 house sales and 5% share.
Average House Price in Istanbul is Over ₺4 Million
According to Endeksa data, the annual value increase in housing sales prices in Istanbul was 73% as of the end of December. In Turkiye’s largest city, the average residential square meter sales price was determined as ₺36 thousand 262, and the average housing price was determined as ₺4 million 170 thousand 130. In Ankara, housing prices increased by 102% in the last year. The average housing price in the capital is ₺2 million 570 thousand 100, and the square meter price is ₺19 thousand 770. Izmir closed 2023 with a 78% increase in value. As of the end of the year, the average square meter sales price in the city is ₺30 thousand 39, and the average housing price is ₺3 million 754 thousand 875.
The Most Valuable Cities of Turkiye: Hatay, Elazig and Ordu
According to Endeksa’s study evaluating the 30 cities where the most houses were sold in December 2023, the first three most valued cities in Turkiye were Hatay, Elazig and Ordu. Housing prices in Hatay increased by 124% in the last year. The sales price per square meter in the city is ₺17 thousand 834, and the average housing price is ₺2 million 764 thousand 270. The value increase recorded in Elazig was determined as 107%. The average square meter sales price in the province is 11 thousand 918, and the average housing price is ₺1 million 966 thousand 470. The increase in value in Ordu in the last year is at the level of 106%. The average square meter sales price to buy a house in the city is ₺20 thousand 5, and the average house price is ₺2 million 600 thousand 650.
“New House Sales” Continues with Negative Trend
Despite the general increase in real estate sales last December, there was a 34% decrease in new house sales and 51 thousand 243 houses were sold. In 2023, 379 thousand 542 new houses were sold and there was a decrease of 18%. Considering the houses sold with credit, sales increased by 15% last month. In the last month of 2023, 6 thousand 42 houses were sold with mortgages in Turkiye and this item constituted 4% of total sales.
Second Hand House Market Has the Largest Share of Total Real Estate Sales
Another important real estate sales item that experienced an increase in December was second-hand homes. Second-hand housing sales increased by 39% in the last month. The largest share of total real estate sales in Turkey is second-hand housing sales, with 63%. There were 846 thousand 384 sales in the second-hand market in 2023, a 17% decrease compared to the same month of the previous year.
2 Thousand 64 Houses Sold to Foreigners
There was a 12% decrease in housing sales to foreigners in December and a total of 2 thousand 64 houses were sold. This item showed a decrease of 68% compared to December of the previous year.
Evaluating the developments, Endeksa Founding Partner Gorkem Ogut said: “2023 was the year with the lowest sales activity in the last 9 years for the real estate sector. It is possible to explain this situation with the tight monetary policy, the effects of which are observed in Turkiye as well as all over the world. The biggest reasons for this stagnation in the housing market are the increase in interest rates, difficulty in accessing credit, and investors’ preference for real estate rather than real estate. 2022 was a year when real estate turned into almost the only investment tool preferred over vehicles and prices increased by over 200%. 2023 was not such a year. However, we can still say that housing maintains its appeal compared to other investment instruments, especially with an 84% increase in value in the sales market. The real estate market is currently in a situation where buyers are stronger. What will be decisive for 2024 is, of course, construction activities. We foresee a value increase parallel to inflation for the end of 2024 and 2023. We closed the last year at a level 20 points above inflation. Considering that the estimated inflation rate by the end of 2024 is around 45%, it is possible to predict that the market will close the year with an increase of around 60-65%. Campaign expectations are actually one of the reasons for the stagnation in the market. Since July, the market has been waiting for the campaign that will offer 15-year loan opportunities with a rate of 1.20 to those who will buy their first home. This causes both home buyers and sellers to act with the motto ‘let’s wait and see’.”
Source: Gayrimenkulhaber / Prepared by Irem Yildiz