The ranking has changed in the housing league. Considering the annual price increase rate in cities, Istanbul fell to the 70th place among 81 cities. Antalya, which had been pushing for the top in the past years, fell from 9th to 78th place. While the price increase slowed down in big cities, Anatolian cities came to the top.
While house prices continue to rise, the rate of increase is slowing down. According to the news by Gulistan Alagoz from Hurriyet, according to the December 2023 data announced by the Central Bank of the Republic of Turkiye (CBRT), the monthly increase in housing prices across Turkiye was 1.15% and the annual increase was 75.5%. Thus, the slowest monthly increase in the last 4 years and annual increase in the last 2 years were observed. When we look at the increases on a provincial basis, it is noteworthy that popular cities fell out of the league. While big cities such as Istanbul, Antalya and Izmir declined in the price increase rate list, Anatolian provinces came to the fore.
PRICE INCREASE IN BIG CITIES HAS SLOWED DOWN
Real estate valuation platform Endeksa, with its research, revealed that there are serious changes in the ‘housing price increase ranking’. Endeksa Founding Partner and General Manager Gorkem Ogut said, “We see that the price increase in big cities has slowed down and the rate of increase in smaller cities has increased. While Istanbul ranked 7th among all provinces according to annual change rate in January 2022, it fell to 70th place in 2024. Antalya and Izmir are also at the bottom of the list. The reason for this is the stagnation of sales in big cities and the fact that prices cannot rise, and the increase in demand for Anatolian cities due to affordable housing.”
WHY PRICE INCREASE SLOWED DOWN
- The main reason for the decrease in the housing price increase both throughout the country and in big cities is decreasing demand.
- There is a decrease in housing sales due to increasing prices, access to credit and, most importantly, high interest rates.
- Investors cannot buy as much as they need. Due to the credit restrictions for those who will buy their second home and the attraction of deposit interest, investors do not start purchasing.
- Especially in the second-hand market, homeowners cannot make significant price increases as before, and even the bargaining margin is gradually increasing.
- In addition, different reasons deeply affect the housing market in each city. For example, rapidly rising prices in Istanbul in the past, fear of earthquakes and reverse migration, and decreasing foreign demand in Antalya cause a decrease in speed. Based on the saying ‘a fast running horse gets tired quickly’, experts state that very rapid price increases in 2022 and 2023 are also effective in the decrease in speed.
WHICH CITIES ARE AT THE TOP IN RENT PRICES?
So, while big cities fell behind in the price increase rate rankings, which cities were at the top? As of January 2024, Sirnak ranked first with an increase of 125%, this was followed by Ardahan with an increase of 122%, Kirklareli with an increase of 114%, Karabuk and Hatay with an increase of 113%, Kars with an increase of 112%, Artvin with an increase of 110%, Erzincan, Agri and Bitlis with an increase of 102%.
On the other hand, the provinces with the slowest price increases were Adana with 49%, Adiyaman with 58%, Canakkale and Antalya with 59%, and Bursa and Batman with 60%, Mersin with 61%, Yalova with 62%, Gaziantep with 63% and Duzce with 64%.
MOST EXPENSIVE AND CHEAPEST CITIES
According to the January 2024 data of the research, the province with the highest average square meter price was Mugla with ₺55 thousand 335. Mugla was followed by Istanbul with ₺36 thousand 862, Aydin with ₺32 thousand 868, Antalya with ₺32 thousand 613, and Izmir with ₺30 thousand 492, Balikesir with ₺26 thousand 949, Canakkale with ₺26 thousand 721, Bartin with ₺24 thousand 401, Sinop with ₺24 thousand 27, and Edirne with ₺23 thousand 507.
The province with the lowest average square meter price was Agri with ₺10 thousand 723. This was followed by Mus with ₺11 thousand 53, Siirt with ₺11 thousand 78, and Sirnak with ₺11 thousand 727, Erzurum with ₺11 thousand 732, Bingol with ₺11 thousand 842, Hakkari with ₺11 thousand 919, Elazig and Kirikkale with ₺12 thousand 101, and Kayseri with ₺12 thousand 575.
FALLED FROM THE TOP TO THE BOTTOM
Housing and rent figures in Antalya peaked with the intense demand from Russians after the war, and local people had difficulty finding housing. However, decreasing foreign demand brought about a decrease in the price increase rate. While the average square meter price in Antalya was ₺32 thousand 613 in January 2024, the annual price increase was calculated as 59%. However, in the same period last year, the annual increase was 162% and 99% in 2022. In January this year, Antalya fell to 78th place in the annual price increase ranking. It was ranked 9th in January 2023 and 6th in January 2022. Thus, the province where the biggest decrease was detected was Antalya.
HERE IS THE LATEST SITUATION IN THE BIG THREE
ISTANBUL DROPPED TO 70TH PLACE
Although the highest average price among the three major cities is in Istanbul, the city with the lowest price increase rate is also Istanbul. As of January 2024, the annual price increase in the megacity was 65%, and the average square meter price was ₺36 thousand 862. In Istanbul, the annual increase was calculated as 142% in January 2023 and 96% in January 2022. In January this year, Istanbul fell to 70th place in the price increase ranking among 81 provinces. However, it was ranked 38th in January 2023 and 7th in January 2022.
There was also a significant decline in the price increase rate in Izmir. In January 2024, the annual price increase was announced as 67%, and the average square meter sales price increased to ₺30 thousand 492. However, in January 2023, the annual price increase was 148%. Izmir fell to 68th place in the annual price increase ranking of 81 provinces. It was 33rd in 2022 and 26th in 2023.
Although the price increase rate decreased in Ankara, there was no significant decline in the rankings as other cities. After the Kahramanmaras earthquakes, the city’s intense migration and rapidly increasing demand were effective in the price increase. The average square meter price in the capital rose to ₺19 thousand 838 in January 2024, with an annual increase of 87%. The annual increase was 146% in January 2023 and 75% in 2022. Among 81 provinces, Ankara ranked 32nd with annual price increase. It was in the 29th position in 2023 and the 31st in 2022.
Source: Patronlardunyasi / Prepared by Irem Yildiz