If you decide to buy property in Turkey and are waiting for the right moment, then you should not postpone the purchase. All real estate market analysts confirm that real estate prices will only grow. In this article, we will tell you which real estate price growth factors to consider in 2023.
Also, to know the current prices, you can refer to the property in Turkey.
1. In 2023, the demand for real estate purchases from foreigners will not fall, but will only grow
Why is it so? Even with an unprecedented increase in property prices in 2022, the cost of buying property in Turkey remains competitive and lower than in many other countries. Turkey has a low investment threshold for obtaining a residence permit or Turkish citizenship.
In order to obtain a residence permit for investment, it is necessary to purchase real estate, the cadastral value of which is only 75,000 US dollars, and to obtain citizenship - 400,000 US dollars. In addition to you, your spouse and minor children can apply for citizenship. Previously, legislation allowed the purchase of one or more objects and the application for citizenship under an accelerated and simplified procedure. But with the change in the law, in order to obtain citizenship, it is necessary to purchase real estate under one contract of sale. Restrictions also affected the acquisition of real estate for two. Now it is impossible to buy real estate, the cadastral value of which is from $ 800,000 for two, and it will not work to apply for citizenship. Each buyer will have to purchase a separate property, which also affects the amount of property purchased.
To know the prices in Antalya, visit the Antalya Apartments for Sale page.
2. The Turkish government passed a new law on preferential mortgages for middle-income citizens, which will also affect the demand for real estate
On January 16, 2023, a new law on mortgage lending for Turkish citizens came into force. For citizens with average incomes, it has now become easier to purchase real estate - the amount of the down payment has decreased, as well as the interest on a mortgage loan, which is already affecting the Turkish real estate market. The demand for real estate among the local population has grown. Analysts say that only because of this factor real estate prices will increase by 10%
Alanya is another developed and popular city in Turkey that you can count on to buy an apartment. To know the prices, you can refer to the property for sale in Alanya.
3. Rising prices for land for construction
The land fund is steadily declining, especially in the resort regions of the Mediterranean Sea, therefore, due to the lack of free land for construction in the city, land prices have increased by 2-3 times over the past few years and will continue to grow, and hence the cost of real estate built on it.
Istanbul is one of the main and important cities of Turkey, which is a suitable option for buying an apartment and investing due to its touristic conditions. To know the prices in this city, you can refer to the page of apartments for sale in Istanbul.
4. Decrease in stocks of housing stock due to unprecedented growth in demand for real estate in 2022
The demand for the purchase of real estate is currently higher than the supply in the real estate market. Demand began to exceed supply even during the pandemic, when all construction companies slowed down the pace of construction. This affects the increase in real estate prices this year as the primary market and real estate under construction, as well as the secondary market.
5. Growth in the cost of construction, transportation costs for supplies, as well as an increase in prices for paperwork and expert assessments
Prices for building materials (cement, concrete, iron, etc.) increased by an average of 40-50%. The construction index for 2022, against the backdrop of rising energy prices, fuel, wages and the devaluation of the Turkish lira, increased by 102% compared to last year. In addition, inflation last year also affected other areas, so prices will continue to increase not only for materials, energy and labor costs, but also for examinations, execution and approval of documents, as well as for logistics.
Based on these factors, a decrease in property prices is not expected. Therefore, you should not postpone the purchase of real estate in Antalya, but deal with this issue right now. Our professional team will provide you with information support, select the best real estate options for you and accompany you at all stages of the purchase.
You can contact Antalya Estate Group for more information on the increase in property prices in Turkey and to receive expert advice.