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Analyzing Turkey’s Housing Market: September 2023 Statistics

Analyzing Turkey’s Housing Market: September 2023 Statistics

Overall Housing Sales Trends:

The Turkish Statistical Institute (TUIK) released housing sales statistics for September 2023. Overall in Turkey’s Housing Market home sales dropped, especially with mortgages and sales to foreigners. Big cities like Istanbul still lead, but some areas had a harder time selling homes. The second-hand market is holding strong, despite fewer sales in both new and used homes. Foreign buyers, especially Russians, are buying fewer homes.

According to the report, there was a 9.5 percent decrease in house sales compared to the same month the previous year, with a total of 102,656 houses sold across Turkey. Analyzing the January-September period, sales declined by 14.9 percent compared to the corresponding period in the previous year, totaling 900,074 units.

Regional Highlights:

  • Istanbul Leads the Way: Istanbul, as a rapidly growing metropolis, remains a leader in housing sales. With increasing economic development and a real estate market, the city attracts investors and homebuyers with diverse property options. Its strategic location, cultural significance, and continuous urban transformation contribute to Istanbul’s prominence in real estate.
     It constitues in 14.9 percent of the total with 15,247 units sold in September. As a major city, its real estate market remains strong.
  • Other Key Provinces:Ankara and Izmir are key contributors to the housing market, each securing significant shares. In September, Ankara represented 8.8 percent with 9,048 units sold, reflecting its role as the capital. Izmir, a major coastal city, held a 5.3 percent share, selling 5,476 units. Both cities play vital roles in Turkey’s real estate landscape, driven by their economic activities and regional importance.

  • Lowest Sales: Ardahan, Hakkari, and Bayburt recorded the lowest number of house sales, indicating localized challenges.
  • Mortgage House Sales: Mortgage house sales took a decline in September 2023. It dropped by 50.2% compared to the previous year, totaling 8,446 units. This made up 8.2% of all housing transactions. Looking at the January-September period, there was a 29.6% decrease, with 160,884 units sold through mortgages. This shows a significant overall decline in the use of mortgages for home purchases during this time frame.

First-hand vs. Second-hand Sales:

  • First-hand Sales Decline:

The market saw a decline in both first-hand and second-hand house sales in September. First-hand sales experienced a notable drop of 15.2%, totaling 30,488 units. These transactions constituted 29.7% of the overall housing market during this period.

  • Second-hand Sales Slip:

Similarly, second-hand house sales slipped by 6.8%, accounting for the majority of total sales at 70.3%. Despite the decrease, 72,168 units were still sold in this category. This highlights the significance of the second-hand market, which continues to dominate the overall housing sales landscape.

Housing Sales to Foreigners:

  1. Substantial Decrease in Foreign Sales: Housing sales to foreigners saw a notable 42.0% decrease in September 2023, amounting to 2,930 units. This decline continued a trend observed in the previous month, indicating a significant shift in foreign interest in the Turkish real estate market during this period.
  2. Regional Breakdown: Among the regions, Antalya emerged as the leader in housing sales to foreigners, securing 1,070 units. Following closely were Istanbul with 978 units and Mersin with 211 units. This breakdown underscores the regional variations in foreign property investment, with coastal areas like Antalya and major cities like Istanbul maintaining appeal.
  3. Top Nationalities of Buyers: The top nationalities contributing to foreign housing sales were citizens of the Russian Federation, leading with 722 houses. They were followed by Iranian buyers with 327 houses, Iraqi buyers with 191 houses, and German buyers with 148 houses. This information provides insights into the diverse range of international investors participating in the Turkish real estate market, with Russians notably dominating the list during this period.

Turkey’s Housing Market:

The September 2023 housing sales statistics depict a challenging period for Turkey’s real estate market, marked by declines in overall transactions, mortgage sales, and purchases by foreigners. Understanding these trends is crucial for stakeholders in the real estate sector, providing insights into market dynamics and potential areas for improvement or targeted interventions. As the industry navigates these challenges, a nuanced approach and strategic initiatives will be essential to revive and sustain growth in the Turkish housing market.

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