Buying Property in Turkey in TRY and USD; Which is More Attractive?

  CONTENT TABLE

1. Average Housing Sales in Turkish Lira in İzmir Province    1.1. Average Housing Sales in Turkish Lira in İzmir Province for the Last 3 Years

   1.2. Average Housing Sales in Turkish Lira in İzmir Province for the Last 1 Year

   1.3. Average Housing Sales in Turkish Lira in İzmir Province for the Last 3 Months

2. Average Housing Sales in Dollars in İzmir Province2.1. Average Housing Sales in Dollars in İzmir Province for the Last 3 Years

   2.2. Average Housing Sales in Dollars in İzmir Province for the Last 1 Year

   2.3. Average Housing Sales in Dollars in İzmir Province for the Last 3 Months

3. Average Housing Sales in Turkish Lira in Istanbul Province3.1. Average Housing Sales in Turkish Lira in Istanbul Province for the Last 3 Years

   3.2. Average Housing Sales in Turkish Lira in Istanbul Province for the Last 1 Year

   3.3. Average Housing Sales in Turkish Lira in Istanbul Province for the Last 3 Months

4. Average Housing Sales in Dollars in Istanbul Province4.1. Average Housing Sales in Dollars in Istanbul Province for the Last 3 Years

   4.2. Average Housing Sales in Dollars in Istanbul Province for the Last 1 Year

   4.3. Average Housing Sales in Dollars in Istanbul Province for the Last 3 Months

5. Housing Sales Statistics for Turkey Overall
6. Conclusion

 

1-)Izmir Province Average Housing Sales in Turkish Lira:

1.1-) Average Housing Sales in Turkish Lira in İzmir Province for the Last 3 Years:

 

In 2021, the price per square meter in Izmir is 5.000 TL, while in 2024 January prices is around 30.000 TL.

If you had bought a house at the average price in January 2021, its current yield would be about 615%.

 

If you had invested in foreign currency instead of buying real estate during the same period, your profit would have been approximately 257% for Euro and approximately 296% for Dollar.

So, if you bought a property in Izmir in 2021, you would be glad that you didn’t invest in foreign currency

 

1.2-)Average Housing Sales in Turkish Lira in İzmir Province for the Last 1 Year:

January 2023 prices per square meter in Izmir is 18.000 TL. December of 2023 prices per square meter in Izmir is 30.000 TL. If you had bought a house at the average price in January 2023,and if you want to sell this home, your profit will be around %67 in December.

If we assume that you invested in foreign currency instead of buying real estate during the same period, your profit would have been approximately 61.91% for Euro and approximately 55.03% for Dollar.

So, if you bought a property in Izmir with your savings in January 2023, you would still be glad that you didn’t invest in foreign currency.

 

1.3-) Average Housing Sales in Turkish Lira in İzmir Province for the Last 3 Months:

October 2023 prices per square meter in Izmir is 28.000 TL. Januar of 2024 prices per square meter in Izmir is around 30.000 TL. If you had bought a house at the average price in October 2023,and if you want to sell this home in January 2024, your profit will be around %8 (in 3 months periot)

In contrast, if you had invested your savings in Euros during the same period:

• Your profit would have been approximately 12.21%.

If you had invested your savings in Dollars:

• Your profit would have been approximately 7.53%.

In this case, if you had bought Euros in October 2023, it could have been more profitable than buying real estate, but we cannot say the same for Dollars.

2-)Average Housing Sales in Dollars in İzmir Province

2.1. Average Housing Sales in Dollars in İzmir Province for the Last 3 Years:

 

In January of 2021, the price per square meter in Izmir is around 550 $, while in 2024 January prices is around 1000 $.

If you had bought a house at the average price in January 2021, its current yield would be about %80.

If you had invested in foreign currency instead of buying a house during the same period, your profit would have been approximately 257% for Euro and approximately 296% for Dollar.

In this case, if you had chosen to invest your savings in foreign currency instead of buying a house based on the Dollar, you would have been more profitable and completed this transaction with less effort.

 

2.2-)Average Housing Sales in Dollars in İzmir Province for the Last 1 Year:

In December of 2022, the price per square meter in Izmir is around 900 $, while in 2023 December prices is around 1000 $.

If you had bought a house at the average price in December of 2022 , and if you want to sell it on December 2023 you will be earn around %14.

If we assume that you invested in foreign currency instead of buying a house during the same period:

Your profit would have been approximately 61.91% for Euro and approximately 55.03% for Dollar.

So, opting to buy a property with your dollars would not have yielded significantly higher gains for you during this period.

 

2.3-)Average Housing Sales in Dollars in İzmir Province for the Last 3 Months:

In October 2023, the price per square meter in Izmir is around 1000 $, while in 2024 January prices is also around 1000 $.

If you had bought a house at the average price in October 2023, and if you want to sell it on 2024 January you will be earn around nothing (on 3 months period)

In contrast, if you had converted your savings to Euros during the same period:

• Your profit would have been approximately 12.21%.

If you had converted your savings to Dollars:

• Your profit would have been approximately 7.53%.

Of course, this calculation is based on the raw value of the house. If you had rented it out, your earnings could have been different.

 

3-)Average Housing Sales in Turkish Lira in Istanbul Province

3.1.) Average Housing Sales in Turkish Lira in Istanbul Province for the Last 3 Years:

 

In January of 2021, the price per square meter in Istanbul is around 5000 TRY, while in 2024 January prices is around 37.000 TRY.

If you had bought a house at the average price in January 2021, its current yield would be around %680.

If you had invested in foreign currency instead of buying a house during the same period, your profit would have been approximately 257% for Euro and approximately 296% for Dollar.

So, if you bought a property in Istanbul in 2021, you would be fortunate that you invested in real estate instead of opting for foreign currency.

 

3.2-) Average Housing Sales in Turkish Lira in Istanbul Province for the Last 1 Year:

In December of 2022, the price per square meter in Istanbul is around 21.000 TRY, while in 2023 December prices is around 36.000 TRY.

If you had bought a house at the average price in December of 2022, and if you want to sell after 1 year, you could be earn around %73.

 

If we assume that you invested in foreign currency instead of buying a house during the same period, your profit would have been approximately 61.91% for Euro and approximately 55.03% for Dollar.

So, if you bought a property in Istanbul with your savings in December 2022, you may still be pleased that you didn’t invest in foreign currency.

 

3.3-)Average Housing Sales in Turkish Lira in Istanbul Province for the Last 3 Months:

 

In October of 2023, the price per square meter in Istanbul is around 34.000 TRY, while in 2024 January prices is around 36.000 TRY.

If you had bought a house at the average price in October of 2023, and if you want to sell after 3 months you could be earn around %10.

In contrast, if you had converted your savings to Euros during the same period:

• Your profit would have been approximately 12.21%.

If you had invested your savings in Dollars:

• Your profit would have been approximately 7.53%.

In this case, if you had bought Euros in October 2023, it could have been more profitable than buying real estate, but we cannot say the same for Dollars.

 

4-)Average Housing Sales in Dollars in Istanbul Province

4.1-) Average Housing Sales in Dollars in Istanbul Province for the Last 3 Years:

In January of 2021, the price per square meter in Istanbul is around 650 $, while in 2024 January prices is around 1250 $.

If you had bought a house at the average price in January of 2021, and if you want to sell after 3 years you could be earn around %97.

 

If you had chosen to invest in foreign currency instead of buying a house during the same period, your profit would have been approximately 257% for Euro and approximately 296% for Dollar.

Rental income from the property has not been included in these calculations. Rental income could increase these figures.

 

4.2-)Average Housing Sales in Dollars in Istanbul Province for the Last 1 Year:

 

 

In December of 2022, the price per square meter in Istanbul is around 1125 $, while in 2023 December prices is around 1275 $.

If you had bought a house at the average price in December of 2022, and if you want to sell after one year you could be earn around %11.

If we assume that you kept your investment in foreign currency instead of buying a house during the same period, your profit would have been approximately 61.91% for Euro and approximately 55.03% for Dollar.

 

4.3-)Average Housing Sales in Dollars in Istanbul Province for the Last 3 Months:

 

In October of 2023, the price per square meter in Istanbul is around 1225 $, while in 2024 January prices is around 1250 $.

If you had bought a house at the average price in October of 2023, and if you want to sell after 3 months you could be earn around %2.

 

In contrast, if you had converted your savings to Euros and kept them during the same period:

• Your profit would have been approximately 12.21%.

If your savings had remained in Dollars:

• Your profit would have been approximately 7.53%.

Of course, these percentages are reached without considering rental income. With rental income, these percentages could be higher.

 

5-)Housing Sales Statistics for Turkey Overall:

According to the data published by the Turkish Statistical Institute (TÜİK), a total of 105,394 houses were sold in Turkey in March 2024. Housing sales across Turkey decreased by 0.1% compared to March 2023. Istanbul had the highest share with 19,040 housing sales and a rate of 18.1%. Following Istanbul, Ankara had 9,523 housing sales with a rate of 9.0%, and Izmir had 6,413 housing sales with a rate of 6.1%. The provinces with the lowest number of housing sales were Ardahan with 23, Bayburt with 42, and Hakkari with 55 housing sales, respectively. Housing sales in Turkey totaled 279,604 units in the January-March 2024 period, marking a 1.3% decrease compared to the same period in 2023.

 

 

6-)As A Result:

In recent years, there has been a significant increase in the housing market in İzmir and Istanbul. Especially in Istanbul, there has been a considerable rise in square meter prices since 2021. This situation can be considered a positive development for housing investors because the value of their assets is increasing. However, the price of housing is not the only criterion for investors. Fluctuations in exchange rates are also an important factor. Especially evaluations made in foreign currency highlight the differences between housing investment and currency investment. On the other hand, along with the increase in housing market prices, there may also be an increase in rental incomes. This can make housing investments more attractive. However, it is important to clearly determine rental incomes and take into account possible future changes. When looking at the housing sales statistics across Turkey, it is observed that Istanbul has the highest sales figures. In conclusion, before investing in the housing market, it is important to conduct a detailed analysis and benefit from expert opinions. Establishing a conscious investment strategy considering both housing price trends and changes in exchange rates will be healthier for investors.