Turkey Real Estate Analytics

Property market metrics including price-to-income ratio, rental yields, and price trends

Price to Income

12.5x

Ratio of property prices to annual income

Rental Yield

6.1%

Average annual rental return

Price to Rent

16.3

Ratio of property prices to annual rent

Price to Income Ratio

Ratio of median house price to median annual household income

Rental Yield

Annual rental income as percentage of property value

Price to Rent Ratio

Ratio of property price to annual rental income

Apartment Rent (City Centre)

Monthly rent for 1-bedroom apartment in city centre

Apartment Price (City Centre)

Price per square meter to buy apartment in city centre

Building Permits

Number of building permits issued

Apartment Price (Outside Centre)

Price per square meter to buy apartment outside city centre

1BR Rent (Outside Centre)

Monthly rent for 1-bedroom apartment outside city centre

3BR Rent (City Centre)

Monthly rent for 3-bedroom apartment in city centre

3BR Rent (Outside Centre)

Monthly rent for 3-bedroom apartment outside city centre

Mortgage Interest Rate (20Y)

Average mortgage interest rate for 20-year fixed loan

Additional Insights

Expert analysis of Turkey Real Estate trends and investment implications

Market Overview

Turkey's property market exhibits signs of moderate overheating with a relatively high price-to-income ratio of 12.5. Rental yields at 6.1% remain attractive, particularly in the context of Turkey's historically higher interest rates. The market is potentially nearing a peak, suggesting a cautious approach for new investments, but still offers opportunities for yield-focused investors.

Key Findings

Data-driven insights

•Price to Income Ratio is 12.5, indicating affordability challenges for locals.
•Rental Yield stands at 6.1%, competitive compared to Turkey's deposit interest rates, which have been fluctuating around similar levels.
•Price to Rent Ratio is 16.3, suggesting that buying might be more favorable than renting in the long term.
•Building Permits issued are 137,210, indicating ongoing construction activity and potential supply increase.

Market Trends

Historical patterns

•A historical trend of price appreciation, with significant growth in urban centers over the last two decades.
•Rental yields have remained relatively stable despite fluctuations in the broader economy.
•Recent years show a slowdown in price growth, indicating a potential market correction ahead.

For Investors

Actionable takeaways

•With the price-to-income ratio at 12.5, investors should be cautious about overpaying, especially in overheated urban markets.
•Target rental yields above 6% to ensure returns exceed financing costs, particularly in light of potential interest rate increases.
•Consider waiting for a potential market correction before making large investments, unless targeting high-demand areas with limited supply.
•Monitor building permit trends to anticipate new supply and its impact on market balance.

Market Context

Turkey's property market has matured significantly over the past decades, transitioning from a volatile to a more stable environment, albeit with periodic economic shocks. The current market presents both opportunities for yield-focused investments and risks associated with potential market corrections.

💡 Insights based on historical data. Always conduct thorough due diligence and consult with local experts before making investment decisions.