NEWS Property        16/11/2020

Property sales in Turkey fall by 16.3% in October 2020

According to figures prepared by the Turkish Statistical Institute (TÜİK – Türkstat), domestic property sales in general in Turkey, that is including both Turkish and foreign nationals, fell by 16.3% in October 2020 to 119,574 units compared with the same month of the previous year.


Following the recent slump in the property market earlier in the year in April and May due to the coronavirus pandemic, as from the begining of June the lockdown had largely been lifted, and the three largest state banks of Ziraat Bank, VakıfBank and Halkbank extended a new loan incentive scheme with reduced rates to invigorate transition to normalization. Mortgages for new houses have been offered with up to 15 years maturity, with interest rates as low as 0.64% and a grace period of up to 12 months. Property sales in June and July have consequently surged. However, from the second week of August, the Turkish Central Bank, faced with pressure on the Turkish lira had no choice but to increase the cost of borrowing through backdoor measures, forcing banks to increase their interest rates. Indeed, there was a fall in the increase in August to 54.2% compared with the increases recorded in June and July of 209.7% and 124.3% respectively. With tighter monetary and fiscal measures being introduced by the government, property sales have fallen by 6.9% in September and 16.3% in October and can be expected to decrease further in the months to come.


Mortgage sales decreased by 49.3% to 25,566 units in October 2020, and made up 21.4% of all property sales compared with 35.3% in the same month of the previous year.


The number of property units sold for the first time, which made up 30.9% of total property sales, fell by 26.5% to 36,976 units in October 2020 compared with the same month of the previous year. Used property sales which made up 69.1% of total sales in October 2020 decreased by 10.8% to 82,598 units.


For the year 2019, property sales in Turkey were 1,348,729 units, a decrease of 1.9% on the previous year. Mortgage sales, which made up 24.7% of all property sales, increased by 20.1% to 332,508 units in 2019. The number of property units sold for the first time, 511,682 units, which made up 30.3% of total property sales, decreased by 21.5% in 2019 compared with the previous year. Used property sales, with 837,047 units, which made up 62.1% of total sales in 2019, increased by 15.6%.


Property sales to foreigners of 5,258 units in October 2020 showed a 23.1% increase on the figure for the same month of the previous year, a 0.6% decrease on the figure for the previous month of September, and represents 4.4% of total domestic sales in Turkey in October 2020.


Property sales to foreigners for the year 2019 were 45,483 units, 3.4% of the total, and an increase of 14.7% on the 39,663 units for 2018, which was in turn 78.4% higher than the figure for the previous year 2017. The reason for the high number of property sales to foreigners over the last two years has been the weaker Turkish lira and the government’s easing of citizenship requirements in 2018 for foreigners, who can now obtain Turkish citizenship if they own real estate in Turkey worth a minimum of USD 250,000.


In October 2020, sales to middle-eastern nationals continued at over 50% of the total. Highest sales were to Iraq nationals with 909 units, followed by Iranian nationals with 849 units, Russian nationals with 400 units, Afghan nationals with 225 units, Kazakhistan nationals with 213 units, Kuwait nationals with 210 units, UK nationals with 202 units, German nationals with 159 units,  Jordanian nationals with 144 units, and Azerbaijan nationals with 137 units. In 2019, of the total 45,483 units sold, highest sales were to Iraq nationals with 7,596 units, followed by Iranian nationals with 5,423 units, Russian nationals with 2,893 units, Saudi Arabian nationals with 2,208 units, Afghan nationals with 2,191 units, Kuwait nationals with 1,903 units, German nationals with 1,723 units, Jordanian nationals with 1,596 units, and Yemen nationals with 1,353 units.


Istanbul was the number one province attracting property sales to foreigners with 2,458 units in October 2020. The Mediterranean resort of Antalya was the second most popular province with 928 units, followed by the capitol Ankara with 347 units, the north-western provinces of Yalova and Bursa with 187 units and 186 units respectively, and the Mediterranean province of Mersin with 175 units.. Of total sales in 2019 of 45,483 units, 20,857 units were sold in Istanbul, 9,951 units were sold in Antalya, 2,539 units were sold in Ankara, 2,213 units were sold in Bursa, 1,696 units were sold in Yalova, and 1,247 units were sold in Sakarya.


Turkey’s net minimum wage has been raised 49% to TL 17,002 (USD 577) as of 01.01.2024       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s official annual inflation rate decreases to 71.60% in June 2024       Turkey’s official unemployment rate is 8.4% in May 2024       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 85,372,377 as of 2023 yearend       No. of foreigners visiting Turkey in 2023 increases 10.4% to 49.2 million       Turkey’s private sector foreign debt is USD 164 billion as of yearend 2023       Turkey’s economy grew 4.5% in 2023       FDI to Turkey is USD 10.6 billion in 2023       Turkey’s current account deficit is USD 45 billion in 2023