According to Turkish real estate sales statistics in 2022, almost 70% of the sold housing was in the second-hand market. Why has second-hand property become more popular in Turkey?
In total, 1,480,000 residential properties were sold last year. The share of secondary housing amounted to 1 million 25 thousand units. This is 69% of the total mass. Recently, secondary housing began to be in high demand in Turkey. There is a number of reasons for this.
Increasing prices for real estate
First of the reasons identified by experts is a significant rise in Turkish housing cost over the past year. In especially popular regions such as Istanbul or Antalya, prices have increased by more than 200%! But other areas of Turkey were not far behind, so new real estate became simply inaccessible to many local buyers.
Purchasing ability was also affected by changes of housing loans. The Banking Regulatory and Supervisory Agency (BRSA) has reduced funding by placing limits on the amount of loans issued per year. Now loans are issued only for amounts up to 10 million TL ($530 thousand). After that, home mortgage sales fell by 43%.
Shortage of new buildings
During the pandemic in Turkey, the pace of construction of residential facilities decreased. The reason for this was the difficulty in acquiring imported building materials, as well as the serious price increase.
The global crisis, as well as fluctuations in exchange rates, also had a negative impact on the construction sector. In 2022 there were half as many building permits issued as required to cover housing needs. In 2023-24, the housing shortage will only increase.
Sales to foreigners
Last year there was a flood of emigrants from Russia, Belarus and Ukraine in Turkey. Many of them bought apartments for the purpose of living or earning from rent. The interest of the citizens of Iran, Iraq and the Europeans to Turkish real estate did not weaken either.
In total, during the year, the number of objects sold to foreigners increased by 15.2%.
For foreign citizens who buy housing to move or earn money from rent, resale real estate is a more convenient option. Apartments or villas, which are usually sold with furniture and appliances, are already ready for living or renting. This allows to seriously save time and money.
Increased demand among foreigners has affected both the cost of housing and the depletion of housing stock.
Definition of second-hand homes
Second-hand real estate in Turkey refers to housing purchased from the “second hand”. And it’s not necessarily the apartments and houses where someone lived. If the owner bought apartments at the pencil-stage of construction and sold them when the house was finished, this will also be considered secondary housing, even though the apartments are brand new. This could also affect the statistics.
According to experts, real estate prices will continue to grow in 2023, but the number of sales will decline due to market restrictions.
Are you going to buy a property in Turkey for investment or residence? Please contact Mayalanya. We have large database of properties, including property in construction, new and second-hand apartments.
