What Happened in the Turkish Real Estate Sector in 2024?

Turkish Real Estate Sector in 2024: In-Depth Analysis, Problems and Opportunities

The Turkish real estate market has experienced major changes in 2024. Economic fluctuations, changes in interest rates, decrease in housing supply, foreign investor interest and urban transformation projects directly affected the sector. As we enter 2025, we analyze these developments in depth and evaluate the opportunities and risks for the future.

Housing Market Outlook for 2024
The year 2024 has been a year in which housing prices have risen but demand has fallen due to loan interest rates.
- Housing prices in metropolitan cities such as Istanbul, Ankara, and Izmir increased by 20-30%.
- Due to high interest rates, the use of housing loans decreased, and there was a significant increase in cash purchases.
- Housing has become difficult to buy for the middle and low-income segment, so the rental housing market has become more active.

The most important problem of the housing market was that price increases rose much faster than income levels. Residential accessibility has become a major problem, especially in big cities.

Problems:
- Difficulty in accessing financing due to high interest rates on housing loans.
- Inadequacy of new housing projects and inability of supply to meet demand.
- The rapid increase in rental housing prices, making it difficult to obtain housing, especially for the young population.

Opportunities:
- Great discounts offered by contractor companies for cash purchases.
- Formation of new investment areas with the acceleration of urban transformation projects.
- The spread of alternative financing models (installment payment plans, real estate funds).

The Place of Foreign Investors in the Turkish Market
The year 2024 has been an eventful year for foreign investors. Real estate purchases in Turkey by Middle Eastern, Russian and European investors have increased.
- The citizenship-for-citizenship, housing investment program is still gaining traction, but raising the price cap has reduced demand in some areas.
- Foreign investor interest continued in touristic regions such as Istanbul, Antalya, Bodrum, Fethiye and Alanya.

Problems:
- Frequent changes in regulations for foreign investors create uncertainty in the sector.
- Due to foreign investor interest in certain areas, prices have risen excessively and accessibility for locals has decreased.

Opportunities:
- Turkey still has attractive price advantages for Europe and the Middle East.
- Cities with high rental income offer great opportunities for foreign investors.

Urban Transformation and New Projects
In 2024, urban transformation projects in Turkey gained momentum. Transformation projects were prioritized, especially in regions with high earthquake risk.
- Large-scale urban transformation projects have started in Kadıköy, Beşiktaş, Maltepe and Bağcılar districts of Istanbul.
- In cities such as Ankara and Izmir, the transformation of old buildings has accelerated.

Problems:
- Due to financing problems in urban transformation projects, some projects were delayed.
- The fact that the transformation projects are not fully compatible with urban planning has created new traffic and infrastructure problems.

Opportunities:
- Entry of new housing stocks into the market with renewed projects.
- Increasing opportunities for affordable housing investment in urban renewal areas.

Changes in the Commercial Real Estate Industry in 2024
The year 2024 has brought significant changes in the commercial real estate market.
- Occupancy rates in shopping malls have increased, especially the fact that e-commerce brands have turned to physical stores has made shopping mall investments attractive again.
- Warehouse and logistics investments grew. Interest in logistics centers has increased, especially due to the increasing demands of the e-commerce sector.
- Vacancy rates remained high in the office market due to the hybrid working model.

Problems:
- There are still great uncertainties in the office rental market.
- Access to finance for small-scale commercial investments has become difficult.

Opportunities:
- With the growth of e-commerce, logistics and warehouse investments offer high returns.
- Increased demand for small-scale commercial units in central locations.

Prospects and Recommendations for 2025
The year 2025 will be a year in which opportunities and uncertainties are intertwined in the real estate market.
- If interest rates fall, the housing market may start to move again.
- Alternative investment vehicles (real estate funds, lease certificates) may be more prominent.
- Commercial real estate investments can offer attractive opportunities, especially in the logistics sector.

For those who want to invest in real estate in Turkey, the year 2025 contains both risks and opportunities. You can closely monitor the market on HepsiProje.com to keep up with current projects and investment opportunities!