World record breaking housing prices in Türkiye

According to the report of the International Group Tasnim News, until a few years ago, Turkey was a clear example of a country where both renting and buying housing for the middle class and even some poor families It was not a difficult task.

The price of apartments and villas in some cities Turkey, such as Istanbul, Izmir, Analia near Antalya and Mersin and Takirdag, was also very convenient for foreigners. So that you could even buy a big and beautiful apartment in Istanbul by selling a small apartment in Tehran and converting it to lira. But now, in disbelief, Turkey has broken the world record of housing price increase.

Statistics show that in In 2023, inflation in the housing sector in Turkey has reached its peak and this country has set world records by a significant distance, and now buying an ordinary apartment is an impossible dream for millions of citizens. Zayedeh, recently in an interview with Hürriyet Print Ankara, announced that the price of apartments in Istanbul is even higher than the price of houses in Manhattan, New York, and this rate of inflation is not normal.

In addition to the obvious impact of inflation In general, the consequences of the earthquake are still evident on the housing market. Because the earthquake suddenly caused the buying and renting market to face an unexpected demand, and in addition, tens of thousands of workers and skilled craftsmen in the housing sector in the metropolises of Istanbul, Ankara, and Izmir went to work in the earthquake-affected areas. And huge construction companies in these cities faced an unprecedented lack of materials, lack of power and a sudden increase in costs.

3 expensive cities in the world, all 3 in Turkey!

The investigation of strange changes in housing prices in 150 cities of the world in the first quarter of 2023 shows 3 The cities where housing prices have increased the most are all 3 in Turkey: Ankara, Izmir and Istanbul!

Now the situation in Istanbul is such that even the rent of ordinary apartments has more than doubled and tens of thousands of tenant households have moved from the city center to the outskirts. Because in the first 3 months of 2023, housing prices in Turkey have increased by 133% compared to the same period of 2022. Meanwhile, housing prices decreased in some countries, including Germany and England.

As the crisis in the housing and rental market in Turkey worsens, the government is trying to alleviate the problem with new measures, but so far no practical action has been taken.

Based on the global price index Housing, in which Knight Frank, an international real estate consulting company, examined 56 countries and regions, housing prices in Turkey in the first 3 months of 2023 compared to the same period in 2022 with a record-breaking increase of 132.8 percent, with A very serious gap has overtaken all other countries studied. The North (18.8%) is in second place, followed by Croatia (17.3%), Hungary (16.6%) and Lithuania (15.3%).

The rate of increase in some other countries is as follows:

Greece 14.5%.

 Bulgaria 9.5 percent.

Japan 6.8 percent.

France 2.7 percent.

USA 0.7 percent.

The price of housing in some areas, especially in European countries have decreased. While house prices fell by 1 percent in Germany, the rate was 3.1 percent in England and 8.8 percent in Sweden. This report also found that 3 record-breaking cities have recorded such inflations in 150 cities of the world:

Ankara (135.3 percent)

Izmir (133 percent)

Istanbul (127.3 percent).

Meanwhile, in the fourth place of this list, the expensive city of Zagreb has only 22.5%, and this amount is 7.5% in Tokyo, 3.4% in New York, Barcelona and London. 1.4% and 0.6% in Rome.

Reasons of housing price explosion in Turkey

Erdogan government officials have repeatedly announced that the reasons for the back-breaking inflation of housing prices in Turkey are not closely related to the logic of economics and the rule of supply and demand, and some anti-Turkey countries have made strange economic conspiracies against The citizens of this country are running and hurting the economy! But Erdogan’s critics do not believe these words and link the main reason for the high cost of housing in Turkey to the political and economic inefficiency of the Justice and Development Party.

Erdogan’s opponents also believe that the wrong decisions in the field of foreign policy, including supporting the Syrian opposition and opening the Turkish border to millions of refugees and asylum seekers, in addition to granting Turkish citizenship to foreigners in exchange The purchase of property has had a negative impact and has damaged the lives of Turkish citizens. Because they have now faced bigger obstacles to rent and buy housing.

Speculation by banks and financial groups

According to the report of Suzju Print Ankara newspaper, the decrease Strong housing sales in Turkey in October indicate many problems in accessing financial resources. Banks are cautious in granting loans and keep the final amount of the loan low, thus creating challenging conditions for home buyers.

The income of millions of Turkish citizens due to the increase in inflation in the food and livelihood sector is an important factor that makes citizens unable to save and pay installments.

Financial experts in Turkey , believe that during the two losing years of 2022 and 2023, currency fluctuations, along with major problems related to financing, increasing fuel and energy costs, and rising wages, caused the cost of production in Turkey to rise sharply and A significant part of the funds should be sent to the housing sector.

In this sector as well, big companies, instead of promoting housing production according to the citizens’ financial ability, They focused on attracting foreign customers, who often sought to buy four hundred thousand dollar housing in order to obtain Turkish citizenship. As a result, no company sought to produce cheap and average housing, and many ordinary people were left without a hat.

Price Housing will change in 2024?

According to experts, until construction costs in Turkey are reduced, housing prices will continue to rise.

Attila Yesil Ada, one of the housing sector experts in Istanbul, announced that in 2024, there will be an unexpected demand in the housing market. Because it is predicted that with the increase in interest rates, housing investment will decrease in 2024.

Also, according to Ahmed Buyuk Duman, an economist active in the real estate sector in Ankara, the sale of housing in the periods The future will decrease slightly.

Housing is not a pure financial investment. It’s both livable and has rental income and, as a reserve, it’s highly resistant to inflation, but it’s difficult to finance a purchase, and in 2024 only a third of real customers will be able to afford a home on their limited budget. become a house.

New banking decisions can accompany a group of buyers and help them buy a house with down payment terms from 10% to 75%, but such a scenario, only It is possible for couples who both have a monthly salary higher than the average level of Turkey, and at least the income of one of them will be used to pay the installments.

In the end, inflation In the food and clothing sectors, record-breaking and unprecedented inflation in the housing sector and widespread unemployment are the main lasting signs of the economic crisis in Turkey, and it seems unlikely that this country will see much prosperity in 2024.

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