Cost of Housing in Turkey in 2023

Turkey is experiencing significant hyperinflation of the national currency: 58.94% at the end of summer 2023, reaching 85.51% the previous year, whereas prior to 2022 it had not exceeded 11% over 20 years. Owing to the Turkish currency’s instability, people are buying real estate as the safest investment. The increasing number of expats flocking to Turkey and the shortage of low-cost housing caused by the recent earthquake are also stoking up the property market. We will tell you here how much it costs to buy and rent housing in Turkey in autumn 20233.

• What is Happening to Housing Prices in Turkey?
• How Much Does Housing Cost in Different Cities?
• How Much Does It Cost to Rent in Turkey?
• Is it a Good Time to Invest in Turkey in 2023?
• How Do You Choose a Property for Investments in Turkey?

What is Happening to Housing Prices in Turkey?

According to Endeksa, which monitors data on Turkish real estate prices, real estate prices have increased by 109% since the beginning of 2023. The average purchase price of a property in Turkey had reached TRY 2,691,780 (USD 100,316) by August 2023.

By contrast, one year ago, at the end of summer 2022, a residential property in the country cost on average TRY 1,488,500 (USD 81,510 at the exchange rate on 13 September 2022). However, prices grew even more rapidly: 203% year on year. This was one of the most acute price surges in residential property ever recorded in the country by the Central Bank of the Republic of Turkey.

The average cost per square metre in Turkey remains at the level of TRY 20,706 (USD 771). In 2022, it stood at TRY 11,450 (USD 627 at the exchange rate on 13 September 2023).

Despite the price growth, property sales across Turkey are on the rise: 109,548 properties were sold in July 2023, up 31% on June. Experts note the emergence of a seller’s market in the country: too many people want to buy real estate, from local residents buying their own homes to investors seeking to invest money in a growing market and expats who want to settle down in Turkey and obtain a residence permit or citizenship. That is why the most marketable options are selling like hot cakes; buyers are unable to bargain and dictate the rules.

How Much Does Housing Cost in Different Cities?

The price range in Turkey is broad: in large coastal cities such as Istanbul, Antalya, Mersin and Izmir, as well as in resort provinces such as Aydın and Muğla, real estate costs far more than in inland locations. For example, the average purchase price in the province of Muğla and the resort Bodrum is three times higher than in Ankara, the capital of the country, or in the university city of Eskişehir: TRY 6,261,948 (USD 233,084) against TRY 2,145,130 (USD 79,847) and TRY 2,068 430 (USD 76,992) respectively.

Antalya remains the most popular city among expats: in July 2023 foreigners bought 996 properties here. Istanbul come second with the purchase of 832 properties, followed by Mersin with the purchase of 263 properties. Foreigners are also keen on the port city of Izmir and resort provinces on the Aegean Sea.

We present below average property prices in these locations at the end of August 2023:

The high cost of housing in resort locations is attributable to the specifics of the market: many private residencies (duplexes, villas and mansions) are on sale here, while luxury real estate always comes with a larger floor area and more expensive maintenance due to club infrastructure. For example, in Aydın, while one square metre of housing is cheaper than in Istanbul or Antalya, the average property budget is higher.

You should also bear in mind that the price per square metre in a new building can be significantly higher than the average price in the region; in Istanbul, the price per square metre in a premium property complex starts at approximately USD 1,700, and in Antalya at USD 1,300.

How Much Does It Cost to Rent in Turkey?

It is also becoming more expensive to rent in Turkey: according to Endeksa, the annual increase in rentals amounted to 138% by the end of the second quarter. The average rent per square metre today is TRY 114 (USD 4.24). However, the pattern across the country is uneven. For example, in Eskişehir, an inland non-tourist, but fairly developed city, 250 kilometres from Ankara, home to three top-rated international universities and about 900,000 people, rental prices in the centre are in line with average levels. According to Numbeo.com, which collects data on the cost of living in various cities around the world, it costs TRY 5,062 (USD 188) a month to rent a studio and TRY 10,000 (USD 391) to rent a three bedroom flat. Utility bills equal approximately TRY 1,369 TRY (USD 51) a month.

In Ankara, you can rent a small flat in the centre for TRY 11,049 (USD 411) and a three bedroom flat for TRY 18,041 (USD 671). Monthly utility bills equal TRY 1,554 (USD 57.84).

In large coastal cities popular with expats, rental prices are significantly higher than average:

In traditional resorts, for example, in the compact city of Bodrum which has a population of 175,000 people, you can rent a one bedroom flat for about TRY 11,579 (USD 431) a month and a three bedroom flat for TRY 18,832 (USD 701). Utilities cost TRY 3,358 (USD 125) a month. However, rental prices in resort cities depend to a large extent on the season; in summer they are much higher due to significant demand

Is it a Good Time to Invest in Turkey in 2023?

Despite the rapid price growth, the investment appeal of Turkish real estate remains high, especially for foreigners who are not paid in the local currency: during the period from summer 2022 to summer 2023 the cost of housing increased 1.8 times in Turkish lira and 1.23 times in US dollars.

Meanwhile, the growth trend continues. It is true that the price rise is not as high as in 2021 and 2022. However, it is still perceptible: 6% to 7% a month. At the same time, due to hyperinflation, the construction costs of property developers are rising, and in terms of supply and demand the market remains imbalanced in favour of sellers: hardly any housing is on offer. Many expats have flocked to Turkey, and the consequences of the earthquake have still not been overcome. This means that there are no conditions for a slowdown in dynamics in the near future, let alone a fall in housing prices.

The average payback period for real estate in Turkey is 16 years. The quickest turnaround is in Ankara; you can let out a budget flat costing TRY 2,145,130 (US 79,847) for about TRY 13,750 (USD 511) a month and recover your investments within 13 years.

The payback period in Istanbul is 17 years: you can let out a property costing TRY 3,831,240 (USD 142,607) on average for TRY 18,780 (USD 700) a month.

In Antalya, you will recover the return on your investment in approximately 19 years: if you buy a property for TRY 3,654,240 (USD 136,019), monthly rent for the property will average TRY 16,027 (USD 596).

The longest payback period is in the resort province of Aydın: based on an average price of TRY 4,114,665 per property (USD 153,157), monthly rent will average TRY 13,188 (USD 490). As a result, the investor will start to make a net profit after 26 years.

Investors who have purchased housing in the most popular tourist areas of Istanbul or near the beaches of Antalya, Alanya and Muğla can benefit not only from long-term rentals, but also short-term rentals, and receive a yield on the letting of the property of up to 12% per year. You can obtain such a high return on investment provided that you choose the right property. The strategy works best in Istanbul which attracts tourists, regardless of the season.

How Do You Choose a Property for Investments in Turkey?

Not every property will be suitable for this purpose: the quality of construction across the country is uneven especially when it comes to the large-scale construction of properties 20 to 30 years ago. The earthquake in Turkey in February 2023 disclosed a significant number of problems with seismic resistance and the safety of residential building structures (the earthquake destroyed in part or in full at least four million buildings in nine provinces, while the death toll exceeded 50,000).

An independent technical inspection disclosed that the tragedy was attributable primarily to poor design solutions, low quality materials and the age of the buildings. In addition, owing to climate specifics (humid and windy winters and hot summers) almost every single property that is more than 20 years old requires capital investments on repairs; for example, fungus may appear on the walls.

That is why investors prefer to invest in new buildings by approved developers which provide certificates for materials and design solutions, as well as earthquake insurance. In addition, when investing in a new building, you can be sure that after obtaining the return on your investment in 16 years the property will still remain a marketable option. According to the Houseаrch listings, you can take a look at flats, townhouses, duplexes and villas offered by trustworthy Turkish developers. The sales are supported by licensed real estate agents.

If you invest USD 400,000 or more, you and your family can apply for Turkish citizenship. If you purchase a home for USD 75,000 in an area open to foreigners, you can apply for a residence permit.

In a Nutshell

The average purchase price of a property in Turkey in 2023 is USD 100,000. You can use this money to buy a new one-bedroom flat in one of the popular tourist cities. Real estate prices in Turkey grew rapidly in 2021 and 2022. However, even now price dynamics remain positive (6% to 7% a month). You can profit from buying real estate in this country both as your home and as an investment: the average payback period for investments is 16 years. If you invest USD 400,000 or more, you and your family can obtain Turkish citizenship.

Cover photo: Ahmet Çığşar (Pexels)