Turkey Real Estate Market Overview Half Year 2022

MARKET INDICATORS

RESIDENTIAL SALES:

MORTGAGED SALES:

SALES TO FOREIGNERS:

2021 H1 thousand

553

170 104

35 20

2022 H1

726

thousand

In the first half of 2022, the effects of the ongoing Russia-Ukraine war created a shortage in the housing supply in Turkey, while high construction costs along with the exchange rate fluctuations made its impact on housing sales. It was realized as 726 thousand 398 units with an increase of 4%, thus the highest half-year sales rate of all time was recorded. In addition, in line with the reductions in housing loan interest rates, mortgage sales increased by 63.50% compared to the same period of the previous year and amounted to 170,317. Sales to foreigners, on the other hand, increased by 72.7% compared to the same period of the previous year and reached 35 thousand 383, and Istanbul ranked first in this category, as in total housing sales. However, compared to the same period of the previous year, first-hand house sales were recorded as 208 thousand 451 with an increase of 24.2%, while second-hand house sales were recorded as 517 thousand 947 with an increase of 34.6%. In the January - June 2022 period in building permits, the number of flats in the building permits was recorded as 125,854, while a 27.95% decrease was observed compared to the same period of the previous year. In terms of building occupancy permits, the number of flats decreased by 2.41% compared to the same period of the previous year and was recorded as 155,305. While the total area was recorded as 26.9 million sq. m in the building permit this semester, the total area was recorded as 30.4 million sq. m in the occupancy permit. In the sales made to foreigners, the effects of the war between Russia and Ukraine showed itself with Russia (5,849) taking the first place, followed by Iran (4,884), Iraq (4,025), Kazakhstan (1,417) and Germany (1,414), respectively. Overview

Residential Sales 6mth 726 thousand 2022 Q1 31% y/y 

2021 Q2 406k 51% y/y

320k 19% y/y





With Mortgages

2022 H1 63% 

2022 Q1 45% 

2022 Q2 80% 

Sales to Foreigners

21,039 35,383 2022 H1 2022 Q2

BUILDING PERMITS

400

1.500

300

1.000

200

500

100

Millions

0

0

Thousands

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Q1 2022 Q1 Total floor area (sqm) Construction permit Total floor area (occupancy permit)

No of Dwellings (construction permit)

No of Dwellings (occupancy permit)

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