Turkish houses sales up as property demand soars

Almost 60,000 houses sold in Turkey in May, a 16% rise year on year.

Turkey's statistical institute TurkStat has announced that 59,166 homes sold in Turkey in May, with Istanbul taking the lion's share.

"Istanbul had the highest share with 19.2% and 11,356 house sales," TurkStat said in a statement. 

Turkey's largest city was followed by capital Ankara, and Izimir, with 5,653 and 3,298 house sales, respectively. 

Almost a third of the homes sold in May sold for the first time, the institute reported, an increase of 8% over May 2020.

The data also showed that foreign buyers were back in increasing numbers, with a 106% rise in foreign purchases year on year to May. These overseas buyers also targeted Istanbul, buying 818 properties in Turkey's most populous city.  This was followed by the Mediterranean town of Antalya with 341 and Ankara with 106.

Among these foreign buyers, Iraqi citizens topped the list, buying 239 homes. Next up were Iranians, who bought 231 properties and Russians with 119. 

In the first five months of the year, house sales to foreigners totalled 15,740, a 25% annual increase.

Property Turkey director Cameron Deggin said the levers pulled by the Turkish government to encourage domestic property sales had worked. 

"Borrowing is easier than ever so we're seeing a lot more Turks jumping into the housing market," Deggin said.

The healthy market was attracting foreign buyers, he said. 

"While the domestic market is certainly pushing prices up, we need that healthy internal property market as it helps investors with their exit strategy," Deggin said. "To realise the gains from today's property investment, you need tomorrow's buyers, so the fact the government is encouraging them can only be a good thing."