In this article, we will talk about real estate sold in Turkey during the last month of this year, as well as correct some concepts when reading these statistics because of our observations that many transmitters of this news, whether foreign media or real estate brokers, interpret it incorrectly and confuse the statistics of local Turkish citizens with the statistics of Foreigners, on the one hand, also confuse the statistics of a particular city in Turkey with general statistics, and finally the types of real estate that are sold, whether new ones or resales.
Therefore, we will share the same charts from the famous Turkish statistics website TÜİK, and then we will explain the meaning of each of them and give our advice and expectations.
The number of properties sold throughout Turkey in July 2023 is 109,548 properties.
It is 16.7% higher than property sales in July of the previous year 2022 (and therefore the number of properties sold did not decrease from year to year, but rather increased!)
Most Turkish cities share of sales:
- Istanbul achieved a rate of 14.4%, with a number of 15,724 properties
- Ankara achieved a rate of 8.8%, with a number of 9,688 properties
- Izmir achieved a rate of 4.7%, with a number of 5,203 properties.
comments :
- The number of properties sold in July 2023 is more than July 2022 and also more than July 2021, and here we are surprised by the rumors that are being spread that sales in the Turkish real estate market in general have stopped.
- In the Turkish local market, we always notice an increase in real estate purchases in the months following the summer until the end of the year, because real investment begins in markets with little movement (contrary to what many foreign investors do, when there are a lot of sales and prices are high, they buy real estate and when it is There is relative calm and the real estate developer is willing to give additional discounts and more flexible payment plans (they avoid buying).
- Even if a significant percentage of purchases in the local market are made through bank loans for Turkish nationals, you, as a foreign investor, can obtain Turkish citizenship by purchasing real estate worth $400,000, and then you can complete your investments with loans from banks, just like a Turkish citizen. .
We move on to the second statistic and explain it:
Now, if we compare the full period from the beginning of the current year to July 2023 with the same period of the previous year 2022, we note that there is a decrease in the number of properties sold by 17.7%, which is equivalent to 675,327 less than the previous year.
There is no doubt that this percentage is not small, but we must not forget the effects of global inflation this year and that it prompted a large number of investors to keep their money in order to invest it later in more distinctive opportunities (and this is what we will see in the coming months that the number of properties sold will increase)
The statistics of the form of the sale in the event that it was through a bank loan or another method shown at the beginning of the table. Two periods were compared, namely July of this year with the previous year, and also a period from the beginning of the year until July 2023 with the same period of the previous year.
What is important is the type of property being sold, is it a new property or a resale? Here we note the following for the month of July 2023 compared to the month of July 2022:
- 109,548 properties were sold, including 31,641 new properties and 77,907 resale properties, meaning 28.9% are new properties, and the rest 71.1% are resale properties. Here we are really surprised by the rumors that say that resale is very difficult in Turkey. How can this be, and almost every four sales Real estate three of which real estate resale!
- Compared to last year, there is an increase, as we said, of 16.7%, an increase in sales of new properties by 10.3%, and an increase in sales of resale properties of 19.5%.
- In the same way, the first seven months of the current year were compared with the previous year, and there is nothing different.
Now we turn to the graphic curve that describes the ratios of new and resale properties and their change over time:
- New real estate is in red and resale real estate is in blue. We notice a clear proportion between the two curves, rising together and decreasing together.
- From it, we note that the right time to sell your used property is the time when there is a high demand for new real estate, and therefore in times of recession and low sales, it is better for you to go to buy more real estate and to go to sell it in times of economic prosperity.
- The few foreign investors who realize this point and buy in times of recession to sell later in times of prosperity have made profits of more than 300% on a dollar basis over the past five years.
Now we turn to the share of foreigners from real estate sold in Türkiye:
We notice a decrease in the number of properties sold in July 2023 compared to the months of July of previous years:
- July 2021 The number of properties sold to foreigners is 4495 properties.
- July 2022 The number of properties sold to foreigners is 3939 properties.
- July 2023 The number of properties sold to foreigners is 2801 properties.
Here we have very important notes for every foreign investor:
- When this statistic is explained by non-professionals, they focus on the fact that foreign sales of real estate have decreased, and therefore Turkey is no longer attractive for investment. Worse, expectations start to drop in prices due to the decrease in the number of foreigners who bought real estate this month compared to previous years!
- We gave you the full picture and explained that the number of properties sold in Turkey in general increased by 16.7% compared to July of this year with the previous year, which means that the number of properties sold increased: 15,646. And an expected decrease in prices, knowing that local sales have increased almost 15 times the number of properties that have decreased the share of foreigners?! .
- Do you think that investment is no longer attractive due to the decline in foreign demand in light of the increase in domestic demand, which originally constitutes 97.5% of the total number of real estate sold? .
- These statistics that we talked about today pertain to data up to July 2023. It is possible in the near future that the data for the coming months will be different, whether up or down.
- Remember to always take the information from those with experience, because your real estate investment depends on many factors that may increase or decrease its return.
