Turkiye’s real estate market sees a dramatic surge, impacting locals and expats. Explore the causes and effects of this unprecedented growth.
Brits who have long favored Turkiye for its scenic beauty and cultural richness are witnessing an unprecedented surge in the country’s real estate market. According to a recent euronews.business report, house prices in Turkiye have skyrocketed by a staggering 1,194 percent in less than a decade, positioning it far ahead of Hungary, which saw a 116 percent increase. This dramatic rise, especially notable since 2021, has been significantly influenced by the Russia-Ukraine war,among other factors.
Factors Fueling the Fire
Görkem Yapan, a construction and real estate leader at KPMG, clarifies that the war in Ukraine has not directly caused the spike in Turkish real estate prices. Instead, several critical factors have contributed to this trend. These include the Turkish lira’s devaluation, soaring inflation rates leading to heightened construction costs, and an increase in demand post-pandemic. Furthermore, natural disasters, such as earthquakes affecting 11 cities, have forced relocations, intensifying the competition for available properties. Additionally, an influx of Russians fleeing Vladimir Putin’s draft has notably affected cities like Mersin, Istanbul, and Antalya.
The Antalya Phenomenon
In Antalya, a seaside city beloved by tourists and expats alike, house prices have leaped by 230 percent. Yapan attributes this surge to the doubling of the foreign population over two years due to migration from Russia and Ukraine, which has, in turn, caused property and rental prices to soar. An Express.co.uk visit to Antalya unveiled the local repercussions of this trend. Residents have shared stories of exorbitant rent increases and the pressure to relocate, painting a grim picture of the housing crisis. One local recounted how their landlord sought to increase their rent tenfold, a move that forced them back into their parents’ home amid unaffordable living costs.
The real estate boom in Turkiye, particularly in cities like Antalya, has not only reshaped the market but also the fabric of local communities. The influx of foreigners has led to a sharp rise in living expenses, putting immense strain on residents. Many families have been compelled to alter their lifestyles dramatically, with some even facing homelessness due to the inability to afford rent. The situation has led to increased social tensions and a sense of loss among the locals, who feel overwhelmed by the rapid changes and the growing population strength of newcomers.
Source: bnnbreaking