Have apartment prices in Istanbul, Türkiye reached the peak?

In the recent period, we have witnessed an increase in apartment prices in Istanbul, Turkey. Despite this, it cannot be said that it has reached the peak, especially since Istanbul, Turkey is witnessing a boom in the field of real estate investment, after the centenary of the founding of the Turkish Republic and the Turkish government’s announcement of several important economic projects. In fulfillment of Turkey's Vision 2023, most notably the Istanbul Center for International Finance and the new city “Yenisehir”, which will achieve a boom in the real estate investment market, especially the lands that were included in its new plan, in addition to the full opening of Istanbul International Airport at its full capacity and the Basaksehir Medical City with all its departments, and the continuation of construction and implementation of the project. The Istanbul Water Canal is the largest strategic project, which is considered the project of the century. These are all factors to enhance investment in Turkey in general and real estate investment in particular, with the continued rise in land and apartment prices in Istanbul and in most Turkish regions, especially in the regions of Istanbul that are witnessing an urban renaissance and strategic projects there such as “lands.” Arnavutkoy and the new city lands of Yenişehir because they possess the elements of successful and profitable investment for both. Real estate prices in Turkey or in any country in the world, regardless of the economic strength of this country or the advantages of its geographical location or any other advantages, real estate prices must go through a cycle of four repeated, sequential and non-stop stages. These stages are:

• Recovery: It is a stage that is known to come after an economic recession, which is very normal. The stage that comes after an economic recession usually witnesses opportunities and successful deals that attract major Turkish and foreign investors, whether inside or outside Turkey, which generates an acceleration in the pace of construction, with the excess supply gradually shrinking, and prices begin to stabilize simultaneously quickly. Demand is parallel to the amount of supply, which ultimately leads to a recovery in the real estate market.
• Real estate expansion : When the completed projects reach the stage of construction expansion, which generates real estate expansion and where construction is in line with demand, apartment prices in Istanbul, Turkey, will rise based on the high rates of demand and will also attract more investors.
• Saturation and accelerated exposure :After a long period of recovery and expansion of the real estate market, it will reach a stage in which the supply of real estate will increase and supply will equalize demand with a slight increase in supply, so that apartment prices will stop rising at a certain point.
• Recession phase : When supply is greater than demand, apartment prices in Istanbul, Turkey will begin to decline, leading to the accumulation of empty properties. Here, the real estate cycle has reached its final stage, reaching the stage of recession, after which a new real estate cycle begins again.

Real estate market situation in Istanbul, Türkiye : Since the market economy and its vitality depend on the increase in supply and demand, which are mainly linked to the behavior of consumers and their psychological state of fear, optimism, pessimism and anxiety, which would affect the market, we find in the end a large discrepancy between the state of the Turkish market and the hypothesis of low prices at the current stage due to the availability of fundamental reasons proving that the real estate market Turkey is on the rise because it simply needs more real estate and new projects in Istanbul, Turkey, as evidenced by the Istanbul state’s announcement of the issuance of ministerial approvals for building permits for the new city “Yenisehir Istanbul” in the Arnavutköy area, and also the announcement of a huge project to build a quarter of a million properties and sell them in installments according to The lottery mechanism is for some segments of citizens, especially those with limited income, which confirms that apartment prices in Istanbul, Turkey are constantly rising and have not yet reached their peak.

Are apartment prices expected to decrease in Istanbul, Türkiye ?
Most Turkish and foreign economic experts expect that apartment prices in Istanbul, Turkey, will continue to rise in the year 2023. The reason for this is the continuing supply problems with the rise in the global inflation index in the prices of raw materials, which will inevitably lead to a further rise in apartment prices in Istanbul in the future. In the future, add to that the lack of supply compared to the amount of demand, as experts also confirm that the supply in the market is still much lower than the percentage of real demand, especially since the real estate market in Turkey depends on selling to the local market “Turks” at a rate of approximately 95%. % of it, and although there is a problem in their purchasing power, unlike foreigners, the housing loans that banks grant to Turks to buy homes are loans with acceptable interest rates of up to 4% only, meaning that demand and competition are still large, especially with the presence of purchasing power from outside the country. Turkey for Istanbul real estate in particular, which creates a state of balance between supply and demand with a slight increase in demand, which pressures towards higher prices, in addition to the presence of new demands later due to the large population, as well as the economic inflation that the world is going through, which is the most important factor in increasing demand for the real estate market because Quite simply, the best way to maintain and increase capital, which means a new increase in apartment prices in Turkey for the year 2023.

The ideal period to buy a property in Türkiye :

To obtain the best investment opportunities through ideal and reasonable prices for apartments in Istanbul, Turkey or lands in Istanbul, Turkey, the timing of purchase is certainly an important matter, especially since the peak of the rise in apartment prices in Istanbul, Turkey is in the summer and tourist seasons, coinciding with the arrival of tourists from all over the world. Therefore, the ideal period to buy a property in Turkey at reasonable prices is between October and May of each year.