It has doubled in one year… Average housing prices in Turkey have been announced
Technology-focused real estate valuation platform Endeksa, announced by TÜİK, October 2023
Evaluated real estate data for the month.
Accordingly, a total of 93 thousand 761 houses were sold in Turkey during the month, thus the decrease in sales numbers continued by 9 percent.
In the past month, the average residential square meter sales price across the country was recorded as 23 thousand 388 TL, and the average housing price was recorded as 3 million 40 thousand 440 TL.
As of now, the payback period for housing investments in Turkey has increased to 17 years.
October data released by Endeksa shows that the ‘decreasing sales/increasing price’ trend, which has dominated the Turkish housing market for a while, continues at a slower pace.
MORTGAGE SALES DECREASED BY HALF
Another of the most striking data of the last month for the real estate sector and housing market is
came from mortgage sales.
In October, there was a 34 percent decrease in mortgage sales compared to the previous month and a 58 percent decrease compared to the previous year. The share of those with mortgages in total housing sales was 6 percent.
DECREASE STOPPED
On the other hand, the decrease curve in first-hand home sales is progressing more calmly.
A total of 29 thousand 230 houses were sold first hand in Turkey in October. This shows that the decrease was 10 percent compared to the same month of the previous year.
In September, this rate was 15 percent. When the January-October periods of 2022 and 2023 are compared, the decline in first-hand house sales is at the level of 14 percent with a total of 299 thousand 850 sales.
October data show that the ‘decreasing sales/increasing price’ trend, which has dominated the Turkish housing market for a while, continues at a slower pace.
69 PERCENT OF SALES ARE SECOND HAND
The latest situation in second-hand house sales reveals a similar picture.
In October 2023, there was an 8 percent decrease in this item compared to the same month of 2022 and an 11 percent decrease compared to the previous month.
A total of 64 thousand 531 second-hand houses were sold throughout the country during the month, and the ratio of second-hand sales to total sales was 69 percent.
During the January-October 2023 period, the decrease recorded compared to the previous year was 15 percent with 698 thousand 31 houses sold.
HOUSING SALES TO FOREIGNERS DECREASED
There was also a sharp decrease in housing sales to foreigners on an annual basis in October.
Last month, a total of 2,535 houses were sold to foreigners in Turkey. This data is a percentage according to September 2023
It represents a decrease of 53 percent compared to October 13, 2022.
Antalya was the leader in housing sales to foreigners with 931 sales. Antalya is followed by Istanbul with 758 sales and Mersin with 294 sales.
HOW WILL THE PRICE INCREASE PROCEED?
Making an evaluation of the sales and price trends in the housing market in the light of October data, Endeksa Founding Partner and General Manager Görkem Öğüt pointed out that the decrease in total sales and credit housing sales caused the increase in prices to slow down. Öğüt continued his words as follows:
“When we evaluate the market conditions, we see a 34 percent decrease in the number of mortgage sales on credit compared to the previous month of the year. If we look at the long-term change, there is a 58 percent decrease compared to October 2022. In October, mortgage sales on credit accounted for only 6 percent of total sales. Difficulty in accessing credit causes a slowdown in house price increases. Of course, this entire equation may be reshaped depending on the housing loan campaign with attractive interest rates that has been expected in the market for a while. “We believe that facilitating access to finance in a gradual and controlled manner for buyers in need will make a significant contribution to the sector.”
