Barnes Türkiye

The Decreasing Payback Period of Real Estate Investments in Türkiye


Thursday 09 May 2024

Picture The Decreasing Payback Period of Real Estate Investments in Türkiye

In a positive development for the Turkish real estate market, the average payback period for housing investments has significantly decreased. As of the first quarter of 2024, the average payback time for residential real estate in Türkiye is now just 15 years, with some provinces even seeing returns in as little as 11 to 12 years.

Current Trends in Housing Prices

According to the latest data from the real estate analytics portal Endeksa, the average cost per square meter of residential property in Türkiye has reached 25,111 Turkish Lira (TL). The average price for a residential unit is currently 3,264,430 TL, reflecting a substantial increase that, while possibly daunting for buyers, presents lucrative opportunities for investors.

Market Dynamics

The beginning of 2024 has seen a resurgence in the real estate market after several months of stagnation. Sales increased by 12% in March compared to February, indicating a robust recovery. The segment of new constructions saw a 5% increase compared to March of the previous year, and secondary market transactions increased by 9% from February 2024.

International Interest

The Turkish real estate market continues to attract significant interest from international investors. The nationalities of these investors have remained fairly consistent, with the top 10 countries of origin for real estate buyers showing little month-to-month variation. However, there have been some shifts in the broader top 20 list, suggesting dynamic changes in international market participation.

Implications for Investors

The reduction in the payback period for real estate investments in Türkiye is a strong indicator of the market's vitality and its appeal to both domestic and international investors. This trend is supported by a steadily growing demand and increasing property values across the country.

The Turkish real estate market offers compelling investment opportunities, thanks to the decreasing payback periods and the rising value of residential properties. For investors, this means quicker returns on investment and a robust growth trajectory in both the short and long term.

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