Turkey Residential Real Estate Market Outlook 2031
The Turkey residential real estate market size was USD 79.92 Billion in 2022 and is projected to reach USD 212.88 Billion by 2031 expand at a CAGR of 11.5% during the forecast period, 2023–2031. The growth of the market is attributed to the increasing surge in foreign buyer, rising population, affordable financing options.
Turkey is known for its diverse set of both oriental and European elements, country is a lucrative destination due to its tourism, infrastructure, transportation facilities, and ease of living. Turkey is at a historical combination of aspects where urban transformation meets green housing which is expected to improve affordability and quality of housing and community development. According to Housing Development Administration of Turkey (TOKi) a total of 500,000 residential units were constructed between 2003-2010 in 81 provinces and 830 townships across the country.
In 2002 Turkish property market was first opened to foreign buyers under the reciprocity clause. According to this clause only countries allowing Turkish citizens reciprocal rights, such as Britain, Germany, and Netherlands. The reciprocity clause was abolished in 2012, and since then nationals from 183 countries have been allowed to buy properties in Turkey.
The residential real estate market in Turkey was impacted negatively by the onset of Covid-19 in 2020, the market has since regained some of the momentum due to ease of restrictions worldwide. According to Turkish Statistical Institute Turkish Statistical Institute (TurkStat) in the first four months of 2020, the total number of home sales in Turkey rose by 8.9% to 383,821 units.
Turkey Residential Real Estate Market Trends, Drivers, Restraints, and Opportunities
- Rising population, increasing urbanization, disposable income growth, and affordable financing are major factors driving the market growth during the forecast period.
- Increasing demand for residential real estate among the foreign buyers due to factor such as currency devaluation is estimated to spur the market expansion in the coming years.
- High interest rates and economic limitations are expected to hamper the market growth.
- Insufficient supply of housing for highly concentrated middle-income group is projected to restrict the market expansion.
- Technological advancements in the field of construction and architecture expected to create lucrative opportunities for the market players.
Scope of The Turkey Residential Real Estate Market Report
The report on the residential real estate market in Turkey includes an assessment of the market, trends, segments. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Residential Real Estate Market - Turkey Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Types (Condominiums, Villas, and Others), Key Cities (Istanbul, Bursa, Antalya, Fethiye, and Bodrum), Areas (Urban Markets, Suburban Markets, and Rural Markets)
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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Agaoglu Group, Artas Group, Novron, Ege Yap?, Alarko Holding
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Turkey Residential Real Estate Market Segment Insights
Condominium segment is projected to represent a large market share
Based on types, the residential real estate market in Turkey is segmented into Condominiums, Villas, and Others. The condominiums segment is projected to represent a key share of the market during the forecast period due to increasing population and migration to the urban areas. Increasing disposable income is expected to drive the market expansion during the forecast period.
Condominiums benefit from the option of renting or selling them when their price is high, investors typically purchase condominiums in turkey that are still under construction in sizable housing developments with intention of selling them for a profit of more than 20%, this is estimated to drive the market to grow at a significant pace in the coming years.
Istanbul is expected to constitute a major market share
Based on key cities, the residential real estate market in Turkey is segregated into Istanbul, Bursa, Antalya, Fethiye, and Bodrum. Istanbul is expected to represent major market share owing massive demand from foreign investors in the city. In 2019, foreign home purchases rose by almost 15% to 45,967 units from a year earlier according to Turkish Statistical Institute (TurkStat). Iranians and Iraqis accounted for almost one-third of the total foreign purchases last year.
Istanbul is located strategically as a connection between Europe and Asia, this strategic importance makes it a lucrative city to invest in residential real estate which is expected to push the market to grow at a significant CAGR during the forecast period. Istanbul recorded the rise of nominal house price by 11.72% during the year 2020. After adjusting to inflation, the residential housing prices were down slightly by 0.14% year on year.
Urban markets are anticipated to expand at a substantial CAGR
Based on areas, the residential real estate market in Turkey is divided into urban markets, suburban markets, and rural markets. Urban markets are anticipated to expand at a substantial CAGR during the forecast period. This is attributed to the rapidly increasing migration from rural areas and growing population in the cities across the country. Increasing disposable income and affordable financing are major factors anticipated to push the market towards a steady growth rate in the coming years.
Segments
The residential real estate market in Turkey has been segmented on the basis of
Types
- Condominiums
- Villas
- Others
Key Cities
- Istanbul
- Bursa
- Antalya
- Fethiye
- Bodrum
Areas
- Urban Markets
- Suburban Markets
- Rural Markets
Key Players
Competitive Landscape
Key players competing in the residential real estate market in Turkey include Agaoglu Group, Artas Group, Novron, Ege Yapı, Alarko Holding. The players are adopting various business strategies due to the highly competitive nature of the market. Strategies include mass housing development projects, establishment of international offices for attracting prospective foreign investors, and international marketing & branding.
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