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Properties sold in Türkiye in September 2023
In a prior publication, we talked about properties sold in Türkiye in August 2023. Now, we'll shift our focus to the developments in the Turkish real estate sector for the month of September. This analysis is supported by visual data and information sourced from the Turkish Statistics website; alongside noteworthy insights we consider significant.
102,656 homes were sold across Turkey in September
In September, home sales in Turkey experienced a 9.5% decline when compared to the same month in the previous year, amounting to 102,656 properties sold. Istanbul led the way in housing transactions, recording 15,247 homes sold, constituting 14.9% of the total. Following Istanbul in terms of sales volume were Ankara, with 9,48 houses sold, representing an 8.8% share, and Izmir, with 5,476 homes sold, making up 5.3% of the total. Conversely, the provinces with the lowest housing sales figures were Ardahan with 47 houses, Hakkari with 55 houses, and Bayburt with 77 houses.
- It's worth observing that real estate sales in 2023 exhibit a cyclical pattern of both growth and decline. This fluctuation is a natural part of the process of acquiring properties at discounted rates by long-term real estate investors, and the opportunities can differ from one month to the next.
- Contrary to the assertions of some foreign investors who argue that the Turkish real estate market relies entirely on their investments, there is no consistent and unequivocal decline in real estate sales throughout the year 2023.
During the period from January to September, there was a 14.9% decrease in home sales when compared to the corresponding period in the previous year, resulting in a total of 900,074 properties sold.
The number of direct home sales reached 30,488.
In September, the count of direct home sales throughout Turkey registered a 15.2% decline compared to the corresponding month in the previous year, amounting to 30,488. These direct sales accounted for 29.7% of the total home sales. Moreover, during the period from January to September, direct home sales recorded a 13.9% drop compared to the same period in the prior year, totaling 268,597.
72,168 homes were traded in used home sales.
Used home sales throughout Turkey experienced a 6.8% decrease in September when compared to the same month in the previous year, resulting in a total of 72,168 transactions. These used home sales constituted 70.3% of the total home sales. In the period spanning January to September, used home sales also saw a 15.2% decline compared to the corresponding period in the prior year, with a total of 631,477.
The chart displayed above distinguishes between first-time property sales depicted in red and resold properties depicted in blue. It vividly illustrates the relationship between new and resale properties. When market conditions are favorable, and real estate loan interest rates are reasonable, we observe demand for various property types based on the specific needs of the buyers. It is intriguing that there is a common misconception that reselling real estate in Turkey may not be feasible, despite statistics indicating that the number of resold properties is more than twice that of the initially sold properties. Nevertheless, it is crucial to exercise caution when selecting the right property for investment.
It is entirely normal to witness a 9.5% decrease in real estate sales when comparing the current year to the preceding one, particularly in light of the high inflation and escalating interest rates prevailing in the country. If we examine European countries and the United States, we will frequently encounter more substantial declines. Hence, any reduction in real estate prices should be viewed as an opportunity to enhance investments rather than merely watching prices decline without taking any proactive steps. Therefore, when prices inevitably rise again, discerning investors will express their desire for earlier, more favorable prices to kickstart their investments.
2,930 homes were sold to foreigners in September.
In September, there was a notable 42.0% drop in housing sales to foreign buyers when compared to the same month in the prior year, resulting in a total of 2,930 transactions. The proportion of housing sales to foreigners in the overall housing market for September stood at 2.9%. Notably, Antalya claimed the top position in housing sales to foreign nationals with 1,070 homes sold, closely followed by Istanbul with 978 homes and Mersin with 211 homes sold.
- Evidently, there is a distinct impact on foreign demand when we compare it to previous years, highlighting the significant influence of negatively targeted news on the demand rate. Consequently, we consistently recommend that foreign investors refer to local sales statistics to gain an accurate understanding of the market situation, rather than relying on news channels primarily interested in garnering high viewership by reporting sensational and negative news to stimulate engagement.
- Furthermore, it is evident that political circumstances have had a clear effect. Following the Russian-Ukrainian conflict, there was a substantial upswing in the demand for real estate in Turkey. However, as the duration of the conflict extended, this demand began to gradually wane.
Breaking down housing sales by nationality, the majority of properties were purchased by individuals hailing from the Russian Federation. Specifically, in September, citizens of the Russian Federation acquired 722 houses in Turkey. Following closely behind were citizens of Iran, who bought 327 homes, followed by Iraq with 191 homes, and Germany with 148 homes, in that order.
- We observe a distinct decrease in demand from all nations, and this phenomenon is largely attributed to the impact of inflation and rising interest rates. We believe that this presents an opportune moment for expanding investments or adopting a wait-and-see approach. At this stage, we strongly advise against selling real estate at reduced prices, as doing so would entail a missed investment opportunity, potentially benefiting a new investor who could reap substantial profits when the market regains its prosperity.
- These are times conducive to commencing investments, not curtailing them, across all sectors, with real estate being particularly renowned for its stability and security.
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