Real Estate in Turkey: How Will the Earthquake Impact the Sector?
In the beginning of February, Turkey experienced a series of earthquakes that shook the world and were labeled as the 'disasters of the century.'
These natural calamities have had a significant impact on all sectors of the country's economy, including the real estate industry.
The effects are expected to continue throughout the year until all consequences are resolved. There are three main changes anticipated in the real estate sector this year directly related to the earthquakes.
1. Increase in Property Prices:
The most unpleasant news for homebuyers will be the rise in property prices. Last year, the average property prices in Turkey increased by 167% annually, making it the country with the highest growth rate in real estate worldwide. This year, the growth rate is likely to be even higher, with seismic-resistant zones experiencing the most significant price hikes. Provinces such as Antalya, Ankara, Konya, Karaman, Kayseri, Mardin, and others are expected to see the highest appreciation in property values. Many individuals are already seeking to relocate from high-risk areas to provinces with minimal earthquake hazards, driving up prices in those regions.
2. Increase in Rental Prices:
Rental prices will also witness an increase. The upward trend has already begun, as thousands of people who have lost their homes temporarily move to other provinces while their houses are being rebuilt. Despite the rising rental costs, the demand remains high as people need a place to live. Renting property in Turkey will become more expensive and challenging due to the increased demand.
3. Decrease in Housing Inventory:
Residential properties are not infinite, especially considering that developers have constructed fewer properties in recent years due to the COVID-19 pandemic. Housing inventories have been depleted, and now there is a sudden surge in demand for real estate. Again, the focus is primarily on provinces located in seismic-resistant zones. For example, the number of property inquiries in Ankara has already increased by 500%, and in Konya and Antalya by 700%, compared to February of last year. Migration to these provinces has already begun and is expected to continue throughout the year, further reducing available housing options. Additionally, buyer preferences have shifted towards low-rise buildings and new construction, which are perceived as safer options.
We strongly recommend not delaying your real estate purchase in Turkey for too long. The rise in prices and decrease in housing inventory may significantly limit your choices in the near future. Contact us now, and we will help you find a suitable property at currently affordable prices, fulfilling your desired criteria.
