Türkiye Real Estate Statistics and updates in the first half of 2023

The Turkish real estate market experienced significant growth in the first half of 2023, according to the latest statistics and updates. Key indicators highlight increases in construction permits, house sales, foreign investments, and turnover index across various sectors.

In the second quarter of 2023, there was a notable increase in construction activity compared to the same period in 2022. Municipalities granted more construction permits, resulting in a 5.7% increase in the number of buildings, a 31.3% increase in the number of dwelling units, and a 25.6% increase in the floor area of buildings.

House sales also saw a substantial uptick in July, with a 16.7% increase compared to the same month last year, totaling 109,548 units. Istanbul led the way in house sales, accounting for 14.4% of the total sales (15,724 units), followed by Ankara with an 8.8% share (9,688 units) and Izmir with a 4.7% share (5,203 units).

Additionally, there was a significant number of house sales to foreigners in July 2023, totaling 2,801 units or 2.6% of all house sales in the country. Antalya was the most popular destination for foreign buyers, with 996 units sold, followed by Istanbul with 832 units and Mersin with 263 units. Russian buyers were the most active, purchasing 772 houses, followed by Iranians with 272 units, Iraqis with 204 units, and Ukrainians with 146 units.

The overall economic activity also increased, as reflected by the total turnover index, which includes the industry, construction, trade, and services sectors. In June 2023, the index increased by 53.4% on an annual basis. Breaking it down, the industry sector increased by 10.7%, construction by 3.0%, trade by 4.2%, and services by 3.3% on a monthly basis.

Lastly, construction costs also witnessed a surge in May 2023. The construction cost index increased by 0.54% compared to the previous month and by 47.95% compared to the same month last year. The material index rose by 0.60%, and the labor index increased by 1.17% compared to the previous month. Year on year, the material index increased by 35.38%, and the labor index skyrocketed by 105.27%.

In summary, the first half of 2023 was a period of significant growth for the Turkish real estate market, marked by increases in construction permits, house sales, foreign investments, and construction costs. This robust performance indicates a strong demand for real estate and construction services in Turkey, making it an attractive destination for both domestic and foreign investors.