It's a question Cameron Deggin fields every week.
"Why are property prices increasing?"
It's hardly surprising that potential buyers are scratching their heads over property's upward trajectory, says Property Turkey's director.
"Given the fact the currency devalued in 2021, and inflation is high, buyers assume prices should be going down. So the fact that property prices are going up -- well, it's difficult to understand."
Figures from international property consultancy Knight Frank show that Turkey's real estate price index increased by 32% last year, putting Turkey front and centre of house price growth.
If you've been following Turkish news, this could seem far-fetched. By late last year the lira had lost 40% of its value against the US dollar, and inflation was sitting around 15% after reaching a searing 20% high.
Against this economic backdrop, let's examine the factors behind the relentless upward trajectory of Turkey's property prices.
Land: supply and demand
Over the past year, the cost of land has risen 20%. Behind this is a simple fact of supply and demand: with every passing year, there are fewer and fewer places to build. The lack of land means developers are forced into paying top dollar for available plots, which pushes property prices ever higher.
This is especially true in coveted coastal places like Antalya. Sandwiched between mountains and the sea, land has always been at a premium. Construction on Antalya property has barely slowed over the last two decades, pushing the once-affordable developments in this coastal city into the stratosphere of exclusive homes.
High cost of building materials
Over the last year, building material costs have grown by a factor of one and a half. Not only is inflation a factor, but a covid supply-chain hitch that's affected building material globally has also pushed prices higher.
This of course has directly led to a rise in square-metre cost for new buildings.
A growing demand for housing
If you thought the pandemic might put the brakes on foreigners' interest in Turkish property, think again. The appetite for Turkish property remains high, and during the most restrictive times of the pandemic buyers simply moved online, buying Turkish property after virtual tours.
In fact, figures reached record highs last year, with more than 800,000 homes sold over eight months. Included in this figure were foreign buyers, who bought 30,849 units during this period, an increase of 47% over the same period the prior year.
More luxurious homes
The way Turkish buildings are constructed has changed significantly over the last few years. Now, construction is assessed according to each individual development, not an overall standard. This means each development can offer unique selling points, which allows them to stand out in a competitive market.
Once relegated only to luxury apartments, it's now standard for developments to include a swimming pool, sauna, gym, playgrounds and even shops and restaurants. The higher demand for these new necessities is also pushing prices higher.
It's now easier than ever to jump onto Turkey's lucrative property ladder, with Turkish banks willing to offer finance to local and foreign buyers alike. This has opened the doors to Turkey's domestic market, a new generation of young professionals hungry for home ownership. It's also eased the way for foreign buyers who have until now, been stymied by lack of finance.
Deggin says these factors combined guarantee prices will continue to rise throughout 2022 and 2023.
In his two-decade career, the investor and property consultant has seen all kinds of bumps and upsets beset the Turkish economy. However, property values have stood firm, he says.
"If there's one piece of advice I have consistently had for would-be buyers, it's don't wait. You'll miss out."
With more price growth on the horizon, Deggin's advice remains the same today.
"Make that leap, make it this month, or next month. If you're sitting back, waiting for prices to fall to make your move in Turkey, I guarantee you'll be left behind."
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