Under-construction properties in Turkey have become less appealing to buyers for several reasons:
Higher Prices Compared to Ready Homes:
Many under-construction properties are priced 20-30% higher than brand-new, ready-to-move-in homes in the same location. This lack of price competitiveness has diminished their appeal.
No Motivation to Wait:
Buyers are reluctant to invest in properties that are not yet complete, especially when they can purchase similar-quality homes at lower prices without the waiting period. For instance, in Istanbul’s Esenyurt district, ready homes are priced at 2,000 USD per square meter, while under-construction properties are priced at 2,500 USD per square meter.
Flexible Payment Plans:
Despite the drawbacks, under-construction housing market in Turkey often come with attractive long-term installment plans and zero-interest payment options. Builders, struggling to sell in a slow market, offer these terms to attract buyers who lack the cash for upfront payments.Example: Buyers can purchase under-construction homes with down payments as low as 10% and installment plans spread over 60 months without interest.
Owning rental properties in Turkey comes with its own set of issues, driven by government regulations and economic conditions:
Turkish laws heavily favor tenants, making it difficult for landlords to increase rents according to inflation. For example, in 2024, the legal cap on rent increases was 25%, while inflation exceeded 50%.
Evicting tenants can also be a lengthy and challenging process, with courts often siding with tenants. On average, eviction cases take 12-18 months to resolve.
Unlike in the past, short-term rentals through platforms like Airbnb are now heavily regulated. Homeowners can only rent their properties short-term up to 4 times per year and must obtain a license to do so. The cost of licensing is approximately 5,000 TRY annually.
Taxes on rental income have increased significantly. For example, rental income above 880,000 TRY annually is taxed at 40%, making it less profitable for property owners.
The poor housing market in Turkey conditions are not only discouraging foreign buyers but also deterring Turkish citizens from investing in real estate:
Preference for Bank Deposits:
With Turkish banks offering interest rates of 25-30% annually, many locals prefer to deposit their money and earn risk-free returns. For example, depositing 1,000,000 TRY in a bank can yield an annual return of 300,000 TRY, which often exceeds rental income.
Decreased Demand:
The combination of legal and economic factors has led to a 25% decline in property transactions compared to the previous year. As a result, many property owners are reducing prices by 10-20% to attract buyers.
Despite the challenges, the current housing market in Turkey offers unique opportunities for savvy investors:
Discounted Prices on Ready Homes:
Many ready-to-move-in homes are being sold at discounted prices due to low demand. For instance, properties in Antalya that were priced at 3,500 USD per square meter last year are now available for 2,800 USD per square meter.
Long-Term Investment Potential:
Real estate markets are cyclical. By purchasing properties at low prices now and waiting for the market to recover, investors can achieve significant returns. Historically, Turkish property prices have increased by 8-12% annually in recovering markets.
Cash Buyer Advantage:
Sellers are more willing to negotiate with cash buyers. On average, cash buyers can secure properties at prices 10-15% below market value.
To better understand the market, let’s look at some key statistics:
| Property Type | Price (USD per m²) | Payment Plan | Availability |
|---|---|---|---|
| Ready Homes | 2000 - 3000 | Full Cash Required | Immediate |
| Under-Construction | 2500 - 3500 | Installments (60 mo.) | 6-24 Months |
Annual Rental Income (TRY)
Avoid Under-Construction Properties:
Unless you need a flexible payment plan, prioritize ready homes for better value and immediate use.
Invest in Ready Homes:
Focus on discounted ready-to-move-in properties in desirable locations for long-term gains.
Adopt a Long-Term Strategy:
Treat your investment as a long-term plan. The market’s recovery will reward those who buy at low prices now.
Work with Experts:
Navigating the Turkish market requires knowledge and experience. At Homes Gravity, we offer tailored advice to help you make the right decisions.
While today’s conditions show clear risks, the housing market in Turkey is not static. It is shaped by changing policies, demographics, and global economic forces. Looking ahead, three possible shifts could redefine the market:
1. Policy-Driven Demand
If the government introduces tax relief or subsidies for first-time buyers, domestic demand could return quickly. Similarly, easing restrictions on foreign purchases or rental licensing might bring a new wave of international investors. Any such moves could cause prices to rebound faster than expected.
2. Demographic Shifts and Lifestyle Demand
Turkey has a young and growing population, alongside increasing numbers of digital nomads and retirees relocating for climate and lifestyle. This mix of buyers could reshape which areas thrive. Coastal cities may attract retirees, while second-tier cities with strong internet infrastructure could see demand from younger global workers.
3. Market Cycles and Global Context
The housing market in Turkey is highly cyclical. Just as prices dropped 20–30% in 2024–2025, they may surge again if inflation stabilizes or global capital flows back into emerging markets. Investors who recognize this cycle and buy at discounted levels now may find themselves holding some of the strongest appreciating assets in the region by the end of the decade.
The housing market in Turkey today is challenging, but those challenges also filter out speculative buyers and leave space for strategic investors. By anticipating policy changes, demographic demand, and global cycles, buyers can turn short-term uncertainty into long-term advantage.
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