Rising property prices in Turkey ensure good investments

Turkey is a beautiful country to live and the real estate sector in Turkey is growing day by day. The real estate market gets lots of attention from both local as foreign investors. Alanya and its environment has a large variety of property options. The real estate market in Alanya is therefore very alive these days. If you are eager to invest in property in Turkey and you want to know how the property prices are behaving, you can find the answer in this article.

The property prices in the first quarter of 2021

Though the Central Bank of the Republic of Turkey reports the house prices rose by 30,6% during the first quarter of this year, the growth in real terms of house prices is far more modest. The prices rose about 13% due to persistently high inflation. Still, this is one of the strongest episodes of real house price growth during the past decade. When adjusted for inflation, the house prices did stay the same.

This numbers are even more promising, if we consider that this year’s market was mainly tied to local demand. Foreign investments paused due to restrictive measures related to COVID-19. During 2020 the total number of sold houses in Turkey increased by 11,2% to almost 1,5 million units. For comparison: in the year 2019 the increase of sold homes was only 1,9%.

The value of the Turkish lira encourages foreign property buyers

Another factor to encourage foreign property buyers is the current value of the Turkish lira, which lost about 8% of its value against the Euro in just one month. Currently the value of 1 Euro is about 9,5 TRY. For foreign property buyers this means that the real estate market is very attractive. As a result, people from the United Arab Emirates, Iran, Iraq, Russia, Ukraine and Europe are drawn to Turkey. Most foreign home buyers buy property in Istanbul, accounting for 46% of the total annual property sales, followed by Antalya which is good for 20% of the annual sales.

The Turkish property market for foreign buyers

The Turkish property market was first opened to foreign buyers in 2002 and only to nationals of countries allowing Turkish citizens reciprocal rights, like Germany, Britain and the Netherlands. In 2005 the zone restrictions of where foreign people could buy properties where eased. In 2012 the reciprocity requirement was abolished and nationals from 183 countries can now buy property in Turkey. As a result, tens of thousands of foreigners have successfully purchased property in Turkey, especially in the Marmara and Mediterranean regions.