Residential Real Estate Market In Turkey Market Size (2024 - 2029)

Residential Real Estate in Turkey Market Analysis

The Residential Real Estate Market In Turkey Market size is estimated at USD 99.05 billion in 2024, and is expected to reach USD 168.11 billion by 2029, growing at a CAGR of 11.16% during the forecast period (2024-2029).

During the COVID-19 pandemic, falling interest rates kept the Turkish residential market activity going in 2020. The year saw the biggest number of home sales in history. Rising interest rates resulted in a smaller share of mortgaged sales in the overall total in the first half of 2021 compared to the same period in 2020.

Turkey is an attractive country because of its transportation facilities, tourism, entertainment opportunities, and convention tourism. Istanbul, where Europe and Asia meet, emerges as a haven for real estate investments and is a rising star full of real estate opportunities and stands out as a haven for high value-added and profitable real estate. High-interest rates and economic restraints have had an impact on the economy, and one of the impacts is a decline in real estate prices and a decline in the lira.

The lack of available land for development in city centers, particularly in Istanbul, has forced residential developers to shift toward the periphery with large-scale projects. Mass housing development is also increasing rapidly. The Housing Development Administration (TOKI) is leading mass housing development and regeneration projects, with a focus on providing social housing for low and middle-income households. Improper city planning and poor infrastructure due to rapid urbanization have created a demand for earthquake-resilient homes in Turkey.

According to the Central Bank's House Price Index (HPI), house prices in Turkey grew by 32.39% year-over-year in April 2021 and 28.56% in Istanbul. Inflation reached 17.14% during the same period, while the Turkish Lira depreciated by 19.6% versus the US Dollar, with a 17.6% interest return on one-year deposits. House price increases, which had been trailing alternative investment instrument returns and inflation since the beginning of 2017, surpassed inflation and deposit interest rates in the first half of 2021, as they had done the previous year.

Turkey's overall loan volume declined by 5.07% in the first half of 2021 compared to the same period the previous year, after increasing by 4.03% in 2020. Mortgage rates, which were on the rise in the first half of 2021, were a major contributor to the drop in loan volume. In June 2021, mortgage loans accounted for 7.1% of the total loan volume.

Residential Real Estate in Turkey Industry Segmentation

The report provides key insights into the Turkish residential real estate market, and it focuses on technological developments, trends, initiatives taken by the government in this sector, and the impact of COVID-19 on the market. It also focuses on the market drivers, restraints, etc. Moreover, it analyzes the key players and the competitive landscape present in the Turkish residential real estate market.

The residential real estate market in Turkey is segmented by type (condominiums and apartments and villas and landed houses) and key cities (Istanbul, Bursa, Antalya, Fethiye, Bodrum, and Rest of Turkey). The report offers the market size and forecasts for Turkey's residential real estate market in value (USD billion) for all the above segments.