Turkey has traditionally been one of the countries most popular with tourists from Russia, and in recent years Russians have become active buyers of residential real estate. We are talking not only about so-called “vacation housing” in famous resort regions, but also about apartments for permanent residence. The cost of real estate in Turkey is determined primarily by its location – for example, properties located on the Mediterranean or Black Sea coast are cheaper than on the Aegean coast.
With Turkish authorities planning to open the tourist season by early June, demand for local accommodation is expected to resume. In some cases, it did not subside even in March and April – in particular, we are talking about private houses outside the city limits of Istanbul.
By the way, according to the National Institute of Statistics of Turkey, in February 2020, real estate sales in Istanbul increased by more than 50% compared to the same period last year. At the same time, the share of purchase and sale transactions involving foreigners has increased significantly, among whom, in addition to Russians, the greatest interest is shown by citizens of countries such as Iraq, Iran and Saudi Arabia. This is largely due to both the proximity to these states and the simplification of the procedure for obtaining Turkish citizenship, for which it is now enough to buy Turkish real estate for 250 thousand dollars instead of one million, as it was until the fall of 2018.
A distinctive feature of Turkey is the “floating” exchange rate of the local currency – the lira, which at the end of April 2020 had the following quotes: 100 TRY = 13 EUR and 100 TRY = 14 USD. Between January and March, it weakened, which, together with lower prices in Turkish lira from developers and sellers of secondary housing, led to an even more noticeable drop in the value of real estate in Turkey in dollars and euros. Before this, housing prices had steadily risen in price for two years in a row – first by 6%, and then by another 4%.
As a result, by April a unique situation had developed in the Turkish real estate market, when a three-bedroom apartment was sold at almost the same price as a two-bedroom apartment in a new building located in the same city. On average, you could save 10-15% on a purchase, although such a significant reduction was not observed in the most popular regions.
In addition to Istanbul, such regions include Alanya and Antalya, each of which, in turn, is divided into several districts, cities and resort villages. For Alanya, these are Mahmutlar and Kestel, where there is real estate for every taste: from one-bedroom apartments in “economy class” houses (on average 35-45 thousand euros) to apartments in modern residential complexes, the price of which can reach 200 thousand euros.
Popular areas of Alanya include Kargicak, where large-scale construction has taken place. Apartments under construction are still sold here at prices starting from 65 thousand euros, and luxury villas with panoramic sea views cost from 295 thousand euros. In the center of Alanya itself there is also a wide choice of housing, and prices for liquid properties start from 55 thousand euros.
In Antalya there are fewer offers, and the main price range varies between 50-150 thousand euros. At the same time, a 4-bedroom furnished penthouse with an area of 220 square meters in the center of Antalya will cost almost twice as much (around 200 thousand euros) than an almost similar option in Konakli.
Finally, Istanbul is a clear example that property values in Turkey vary depending on its location, when it was built, infrastructure and sea views. In this metropolis of 15 million people, numbering almost 40 administrative districts (districts), the so-called “smart home” system has become widespread, which also affects the final price. The largest number of such objects are located in the Besiktas and Sariyer districts, with skyscrapers predominating in the former, and villas and private houses in the latter. Not only local celebrities, but also wealthy foreigners prefer to settle here, which is why these areas have gained the reputation of being “European”.