How COVID-19 affected property prices in Turkey

How COVID-19 affected property prices in Turkey

The coronavirus pandemic has changed the preferences of home buyers in Turkey. Today, the most sought-after housing options are self-contained houses with a garden as well as prefabricated houses.

On the other hand, the so-called old real properties - apartments in buildings over 30 years old - are in less demand (due to the seismic threat). Given the new demand, construction companies in Turkey are now rolling up their sleeves: they are erecting low-rise villa complexes in picturesque suburbs. The best real estate option in Turkey has become villas in the seaside regions.

As the construction sector has stabilized, mortgage rates began to rise. With an increase in mortgage interest rates in Turkey, there is a slight decrease in residential property sales, but the property prices continued to rise as the demand for housing has remained high.

Real estate experts predict an increase in housing prices as a result of rising demand and the inevitable rise in costs of construction companies. If the coronavirus vaccination helps fight the pandemic in 2021, Turkey's economy will be able to recover and the construction sector can become more active. Even with a further decrease in interest rates, market experts predict that at least 120,000 apartments and houses will be sold monthly in Turkey in 2021.

For those looking for a long-term investment perspective, experts still recommend investing in housing. In 2021, real estate prices in Turkey are expected to rise up to 50 percent: those who are considering buying a house or apartment, it is the right time to start searching for a suitable property.