Brief Summary
This video discusses the current state of the real estate market in Turkey, particularly focusing on the sales data from May 2025. It addresses whether it's a good time to buy or wait, considering factors like interest rates, the impact of the recent earthquake, and the role of foreign investors. The analysis includes detailed statistics on sales volumes, financing methods, and the types of properties being sold, offering insights for both Turkish citizens and foreign investors.
- Real estate sales in Turkey hit record highs in May 2025, surpassing figures from May 2013.
- Despite high interest rates, real estate loans have increased significantly.
- Foreign investment in Turkish real estate has declined, reaching its lowest level in eight years.
- The earthquake in April has influenced housing decisions, driving demand for safer properties.
- High rental prices and the performance of gold investments are also impacting the real estate market.
Introduction
The video begins by questioning the advice given to potential real estate investors to wait for prices to drop in Turkey. It highlights that May 2025 saw record real estate sales despite high interest rates, with a significant portion of sales being brand new apartments financed through loans. The video also points out the decline in foreign investment and poses questions about the impact of the recent earthquake on the market, promising data-driven analysis to guide investment decisions.
Latest Real Estate Sales Data in Turkey
The speaker shares the latest real estate sales data for May 2025, noting a significant increase in sales compared to the previous year. Specifically, real estate sales in Turkey reached 130,000 residential units in May 2025, marking an 18% increase compared to May 2024. This is the highest number recorded since May 2013. The total number of housing units sold from January to May 2025 reached 585,000, also the highest for this period since 2013. Despite higher interest rates compared to years like 2017 and 2022, the market is thriving and potentially entering a historic year for sales.
Distribution of Real Estate Sales Across Turkey
Istanbul leads in sales with 22,000 units, followed by Ankara with 12,000 units and Izmir with 8,000 units. Provinces with the fewest sales include Ardahan, Bayburt and Cesme. The growth rate from 2024 to 2025 reached 25.4%, indicating broad geographical growth in sales.
Cash vs. Loans in Real Estate Sales
In May, 20,000 properties were sold through real estate financing or loans, representing a 96% increase compared to May 2024. 15% of properties sold in May were financed by bank loans, indicating that people are increasingly using loans to buy properties. From January to May 2025, 89,000 properties were sold through real estate financing, a 99% increase over the same period in 2024. In May 2025, 11,000 units were sold in cash, an increase of 10% over the previous year, constituting 85% of the sales volume. From the beginning of the year to May 2025, 496,000 properties were sold in cash, an 18% increase compared to the same period in 2024.
New vs. Used Property Sales
In May 2025, 40,000 new properties were sold, representing an 11% increase compared to May 2024 and constituting 31% of total market sales. 91,000 used properties were sold in May 2025, a 21% increase over the previous year, accounting for 70% of total sales. From January to May, new property sales increased by 18%, while used property sales increased by 30%.
Real Estate Sales to Foreigners in Turkey
In May 2025, 1,700 residential units were sold to foreigners in Turkey, a 14% decrease compared to May 2024, representing 1.4% of total real estate sales. From January to May, foreigners bought 7,800 residential units, the lowest level since 2017. Istanbul leads in sales to foreigners with 650 apartments, followed by Antalya with 600 apartments and Mersin with 145 units. The top nationalities buying properties are Russians, Iranians, Ukrainians, Germans, and Iraqis.
Reasons for Increased Sales and Market Dynamics
The speaker identifies four main reasons for the increase in real estate sales: the earthquake in April 2023, which prompted people to reconsider their housing situations; the desire to preserve the value of money amid inflation; high rental prices pushing people to buy instead of rent; and profits from gold and interest investments being reinvested into real estate.
Investment Opportunities and Recommendations
If there is a well-studied opportunity, it is advisable to buy now due to expected interest rate decreases, increased demand, and limited supply. Turkey needs 7 million apartments to meet demand, while the private sector produces only 500,000 to 600,000 apartments annually. The high cost of land, which can be 40-50% of construction costs, has slowed down construction, but this is expected to improve. Buying in new projects can be advantageous due to contractors needing liquidity and offering installment plans.
Pillars for Investing in Projects Under Construction
Four pillars to consider when investing in projects under construction: the company’s history and market reputation (larger companies are safer), the delivery timeline (anything beyond two and a half years is better), the contract terms, and the project's location relative to competitors and vital areas.
Additional Investment Avenues
The speaker is studying the best real estate funds in Turkey for those who cannot buy a property directly. These funds, overseen by the Capital Markets Authority, are being evaluated for their legitimacy from an Islamic perspective and for offering investments in dollars or euros.
