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Turkey Earthquake and its Impact on Real Estate

Published on May 25, 2023
Updated on Feb 10, 2025
Kourosh Soleymani

Turkey Real Estate After the Earthquake

Turkey Earthquake and its Impact on Real Estate

The devastating earthquakes that struck Turkey on February 6, 2023, were among the deadliest natural disasters in modern Turkish history. With a magnitude of 7.5 and 7.8, these earthquakes left more than 680,000 homes destroyed, millions of people displaced, and economic damage estimated at over $103 billion.

The destruction not only led to tragic loss of life and infrastructure damage but also deeply affected the country’s real estate market, migration patterns, and construction sector.

As Turkey focuses on rebuilding efforts, the real estate market has seen significant price increases, supply chain disruptions, migration to western and central cities, and changes in construction regulations. These changes have affected property buyers, renters, developers, and investors across Turkey. In this article, we will explore how the earthquake has reshaped the real estate market, disrupted construction projects, and created new challenges for homebuyers and investors.

Developers’ Response to the Post-Earthquake Construction Crisis

One of the biggest impacts of the earthquake was on the construction industry. The destruction of homes in eastern Turkey led to a massive demand for new housing, but at the same time, it created a shortage of construction materials and skilled labor. Many workers, engineers, and construction companies were redirected to the affected regions, causing delays in projects across the rest of the country.

Government Policy Changes and Their Unintended Consequences

To encourage faster reconstruction efforts, the Turkish government suspended penalties for developers in other parts of Turkey if their projects were delayed. This was meant to allow construction workers, engineers, and materials to be used in the hardest-hit areas. However, this policy had unexpected consequences.

Instead of using this opportunity to speed up construction, many developers in unaffected cities took advantage of the relaxed penalties to slow down their projects. Since they no longer faced penalties for late delivery, they intentionally delayed their work without concern. This led to significant housing shortages and delayed project completions in cities that were not directly impacted by the earthquake.

Moreover, developers in cities like Istanbul, Izmir, Antalya, and Alanya faced an increase in construction costs due to the rising prices of building materials. This led to further delays in housing projects, making it even harder for buyers to find available properties at reasonable prices.

Mass Migration After the Earthquake

The earthquakes triggered one of the largest internal migration movements in Turkey’s history. The destruction of cities like Gaziantep, Malatya, Hatay, and Kahramanmaraş forced millions to relocate. This led to dramatic changes in the housing markets of cities across the country.

Alanya and Antalya: Overcrowded and Rising Housing Demand

One of the biggest migration waves was towards Alanya and Antalya. These coastal cities have long been attractive destinations due to their warm climate, tourism industry, and foreign property buyers. After the earthquake, thousands of families from the east moved to Alanya, increasing population density and straining infrastructure.

The real estate market in Antalya experienced an unprecedented boom, with rental prices soaring due to the increased demand. The influx of migrants reduced the availability of properties, pushing housing prices to record highs.

Ankara: The Capital Becomes a Safe Haven

Another major migration pattern was towards Ankara, Turkey’s capital. The city became a primary destination for many earthquake survivors due to its central location, government institutions, and job opportunities. As thousands of people from the eastern provinces moved to Ankara, housing demand skyrocketed.

This led to a massive increase in home prices and rental costs. In 2023, property prices in Ankara rose by over 65%, and rental costs more than doubled in some areas. This has made it increasingly difficult for both locals and migrants to find affordable housing.

Western Cities: Moderate Impact But Increasing Demand

Although western cities like Istanbul, Izmir, and Bursa were not directly affected by the earthquake, they still experienced an increase in demand for real estate. Many families, particularly those with higher incomes, relocated to western Turkey in search of more stable housing markets. This contributed to further increases in property prices and rental rates, particularly in Istanbul, where foreign investors and Turkish buyers have already created a highly competitive market.

Rising Construction Costs A Look at Material Prices and Shortages

The destruction caused by the earthquake placed huge pressure on Turkey’s construction sector. Although Turkey is a major producer of cement, steel, and other building materials, the sudden demand for reconstruction caused supply chain disruptions. Many factories struggled to meet the demand, leading to price surges and an increase in imports.

Increase in Construction Material Imports

To meet the growing demand, Turkey had to increase imports of construction materials, particularly from China and Europe. The table below shows the percentage increase in imports of key building materials after the earthquake:

Material	Import Increase (%)
Steel	45
Cement	30
Timber	25
Insulation Materials	40

Increase in Construction Material Prices

Due to increased demand and supply shortages, the prices of construction materials also surged significantly. The table below highlights the percentage increase in material prices following the earthquake:

Material	Price Increase (%)
Steel	50
Cement	35
Timber	40
Insulation Materials	45

Turkey Earthquake and its Impact on Real Estate:
These price hikes have made it more expensive to build new homes, further contributing to the rise in real estate prices across the country.

A Silver Lining National Unity and Future Hope

Turkey Earthquake and its Impact on Real Estate:
Despite the immense destruction and challenges, the earthquake also demonstrated the resilience and unity of the Turkish people. Communities across Turkey came together to provide financial assistance, shelter, and emotional support to those affected.

The rebuilding process has also led to important discussions about new building regulations and earthquake-resistant architecture. Experts emphasize that future buildings must meet stricter safety standards to reduce the risk of destruction in future earthquakes.

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