Residential Real Estate - Turkey

Turkey

The Residential Real Estate market market in Turkey is projected to reach a value of US$6.80tn in 2024.
Based on the expected annual growth rate of 7.59% from 2024 to 2028, the market volume is anticipated to reach US$9.11tn by 2028.
In comparison to other countries, China is expected to generate the highest value in the Real Estate market, with an estimated worth of US$117.40tn in 2024.
The residential real estate market in Turkey is experiencing a surge in demand due to increased interest from foreign investors.

Key regions: Europe, Asia, Australia, United States, Germany

Market

Region

Region comparison

Currency

Analyst Opinion

The Residential Real Estate market in Turkey is experiencing significant growth and development in recent years.

Customer preferences: One of the key customer preferences in the Turkish residential real estate market is the demand for modern and luxurious properties. Buyers in Turkey are increasingly looking for high-quality properties that offer modern amenities and features. This includes properties with spacious layouts, state-of-the-art facilities, and attractive architectural designs. Additionally, there is a growing interest in properties that offer eco-friendly features and sustainable living options.

Trends in the market: One of the prominent trends in the Turkish residential real estate market is the increasing demand for properties in urban areas. As the population in cities continues to grow, there is a greater need for housing in these areas. This trend is driven by factors such as urbanization, employment opportunities, and access to amenities and services. Developers are responding to this trend by constructing residential projects in prime urban locations, offering a range of housing options to cater to different preferences and budgets. Another trend in the market is the rise of mixed-use developments. These projects combine residential units with commercial spaces, retail outlets, and recreational facilities. This trend is driven by the desire for convenience and accessibility, as residents can live, work, and socialize within the same development. Mixed-use developments also contribute to the overall urban development and revitalization of certain areas.

Local special circumstances: One of the unique aspects of the Turkish residential real estate market is the Citizenship by Investment program. This program allows foreign investors to obtain Turkish citizenship by investing in real estate. This has attracted a significant number of foreign buyers, particularly from the Middle East, who are seeking investment opportunities and a second citizenship. Another special circumstance is the increasing popularity of coastal properties in Turkey. The country's beautiful coastline along the Mediterranean and Aegean seas has long been a draw for tourists and investors alike. Coastal properties offer stunning views, access to beaches, and a relaxed lifestyle. As a result, there is a strong demand for residential properties in coastal areas, which has led to the development of luxury resorts and vacation homes.

Underlying macroeconomic factors: The growth and development of the Turkish residential real estate market can be attributed to several underlying macroeconomic factors. One of these factors is the country's strong economic growth, which has resulted in increased disposable income and improved living standards. This has led to a greater ability to invest in real estate and a higher demand for quality housing. Additionally, low interest rates and favorable mortgage conditions have made it easier for individuals to finance their property purchases. This has stimulated demand in the market and encouraged more people to invest in residential real estate. Furthermore, government incentives and policies aimed at attracting foreign investment have also played a role in the development of the market. The Citizenship by Investment program, as mentioned earlier, has been particularly successful in attracting foreign buyers and driving demand in the residential real estate sector. In conclusion, the Residential Real Estate market in Turkey is experiencing significant growth and development due to customer preferences for modern and luxurious properties, trends such as the demand for properties in urban areas and the rise of mixed-use developments, local special circumstances such as the Citizenship by Investment program and the popularity of coastal properties, and underlying macroeconomic factors including strong economic growth, low interest rates, and government incentives.

Methodology

Data coverage:

Figures are based on total and average value of residential real estate, residential estate transactions and leases.

Modeling approach:

Market size is determined by a combined top-down and bottom-up approach. We use national statistics, international organizations, and industry associations to analyze the markets. To estimate the market size for each country individually, we use relevant key market indicators and data from country specific industry associations such as GDP, price level index, household wealth, household size, number of renter and owner households, housing consumer spending per capita.

Forecasts:

We use a variety of forecasting techniques, depending on the behavior of the market, for instance, exponential trend smoothing. The main drivers are GDP per capita, population, number of renter and owner households, price level index, housing consumer spending per capita.

Additional Notes:

Data is modeled using current exchange rates. The market is updated twice per year in case market dynamics change. The impacts of the Russia-Ukraine war are considered at a country-specific level.