Last Updated on 28/11/2023
Turkey’s real estate industry is very dynamic and continually undergoing changes that may have an impact on supply and demand. To assist you in better understanding the Turkish real estate market, professionals at MEO Consultants regularly monitor the official data on house sales in Turkey issued by TUIK each month. So let’s take a closer look at the home sales March 2023 in Turkey.
Home Sales March 2023 reached 105,476 in Turkey
In Turkey, the number of home sales March 2023 fell by 21.4% compared to the same month the year before, reaching thus 105 046. Istanbul had the highest percentage with 18, 166 house sales and 17.2%. Moreover, Ankara ranked second with 12 023 house sales, and Antalya was third, with 6 120 house sales, with shares of 11.4% and 5.8%, respectively. However, the lowest number of sales occurred in the provinces of Ardahan (23 sales), Hakkari (54 sales), and Bayburt (69 sales).
The number of homes sold from January through March fell by 11.5% from the same time last year to 283,215 units.
Mortgage Home Sales March 2023
Mortgage home sales in Turkey fell by 16.5% in March compared to the same month the year before, to reach 25,262. In other words, a quarter of all home transactions involved mortgages. Moreover, Mortgaged home sales fell by 13.9% for the months of January through March compared to the same time last year, reaching thus 58,822.
Besides, 8811 properties of mortgaged home sales in March 2023 were first-hand sales.
Home Sales March 2023 by type
When compared to the same month the previous year, first-time home sales in Turkey fell by 14.2% in March, totaling 32,899. Therefore, 31.2% of all home sales March 2023 were first sales. Moreover, first-time home sales fell by 11.2% from January to March compared to the same period the year before, to record 83,907.
However, second-hand home sales in March 2023 fell by 24.3% compared to the same month the year before. Thus, they reached 72,577. Consequently, 68.8% of all home sales were for used homes. Moreover, the number of used homes sold from January through March fell by 11.7% from the same time last year to 199,308 homes.
Foreigners Home Sales March 2023 in Turkey
In Turkey, the home sales March 2023 made to foreigners reached 3,0415 properties making thus a 38.7% decrease from the same month the year before. In other words, 3.2% of all home sales in March were made to foreigners. Antalya was at the head of the list with 1324 sales to foreign buyers. However, Istanbul followed it with 1090 home sales. Besides, Mersin was in third place with 240 home sales to foreigners in March 2023.
As usual, Russian citizens were the top foreign buyers purchasing 1175 homes from Türkiye in March 2023. However, Iranians were in second place with 472 homes. Meanwhile, Iraqis purchased 165 homes and came in third place. Moreover, Ukrainians were in 4th position with 160 homes.
Turkey’s Homeownership Rate
The homeownership rate in Turkey was about 65% in 2021. Moreover, according to Trading Economics, the homeownership rate in Turkey decreased from 58.8 to 57.9 between 2019 and 2020. These rates are a little lower than the norm for developed countries. However, the Turkish government actively promotes homeownership through a variety of laws and initiatives, such as tax incentives for property investors and subsidies for first-time homebuyers. A rise in housing and homeownership demand has also been attributed to the country’s recent strong economic growth and its relatively young population. Moreover, it’s important to keep in mind that homeownership rates can alter over time and may be impacted by several variables, including prevailing economic conditions, shifting demographics, and governmental regulations.
Real House Price Index
The Real House Price Index (RHPI) in Turkey had been rising for a number of years demonstrating the significant demand for property in the country. The RHPI for existing homes climbed by 17.92% in 2020 compared to the prior year, while the RHPI for new homes increased by 22.24% during the same time period, according to data from the Turkish Statistical Institute. According to experts, the decrease a notices in home sales March 2023 might have an important impact on the real house price index.
FAQ
Is it a good time to buy a house in Turkey now?
The demand significantly grew as a result of the inflation rate, which peaked in March 2022 at 60%. Moreover, experts expect the Turkish real estate market to expand at an average annual pace of 8% between 2022 and 2027.
Are house prices rising in Turkey?
After rising by 167.9%, property prices in Turkey increased by 153.1% annually in January 2023.
