Real EstateIstanbulTurkiye

Real Estate Market Update: Housing Prices in Istanbul Show Signs of Decline

Evolving Trends in Istanbul’s Real Estate Sector

The momentum of rising housing prices in Istanbul, Turkiye’s bustling metropolis, has notably slowed down in recent months, signaling a shift in the market landscape. According to the latest sahibindex Rental and Sale Housing Market Outlook report, the increase in current prices in Istanbul recorded a modest 1.6% uptick. As of April 2024, the average house price per square meter stood at ₺39,080, marking a significant contrast from the peak of 240.9% surge observed in July 2022. This decline suggests the onset of a market equilibrium phase, ushering in a period of stabilization.

Ankara Witnesses Deceleration in Price Escalation

A parallel trend is evident in the capital city of Ankara. The report indicates a subdued growth rate in current prices, with a 1.4% increase recorded. As of April 2024, the average house price per square meter in Ankara was reported at ₺21,250. The annual price escalation, which peaked at 205.6% in September 2022, has since tapered down to 51.3%, indicating a moderation in the housing market’s upward trajectory towards a more sustainable level.

Stabilization of Housing Prices Emerges in Izmir

Similarly, housing prices in Izmir are experiencing a slowdown in their upward trajectory. According to the sahibindenx report, the increase in current prices in Izmir registered at 2.6%. As of April 2024, the square meter price of the average house in Izmir reached ₺32,632. The annual price hike, which hit a peak of 183.1% in September 2022, has now decreased to 43.6%, signaling a stabilization phase in the Izmir housing market.

Insights from Experts and Future Projections

Industry experts suggest that this deceleration in the housing market may mark the beginning of a sustainable balancing phase. A more controlled increase in housing prices could present significant opportunities for investors and prospective homeowners alike. The interplay between economic fluctuations and the supply-demand dynamics will continue to shape the trajectory of prices in the housing market.

Looking ahead, it is anticipated that housing prices will adopt a more stable trajectory as economic indicators normalize, fostering a healthier market structure. This shift towards predictability and equilibrium will foster a conducive environment for both buyers and sellers, ensuring a more balanced and sustainable real estate market in the foreseeable future.

Source: Emlakdergisi / Prepared by Irem Yildiz

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