House prices in Turkey and the world: where have they risen the most?

Housing prices in Turkey rose 189 percent in the third quarter of 2022 from a year earlier. The real increase, excluding inflation, was 58 percent. This indicates that house prices are rising faster than inflation. Turkey ranks first among 56 countries in price growth, while Israel ranks second with a 13 percent increase in home prices.

Which countries have the highest house price growth in the world?

How many foreigners have bought homes in Turkey? Knight Frank's Global House Price Index data for the third quarter of 2022 shows how much house prices have risen between 2021 and 2022, excluding inflation. Turkey ranks first with an increase of 189 percent. Estonia is in second place with an increase of 27 percent. It is followed by Hungary, the Czech Republic and Iceland with an increase of 23 percent. Six countries experienced a decline in nominal prices. In South Korea, home prices fell 8 percent. In Peru, the decline was 5 percent, and in New Zealand it was 2 percent. In other countries, the annual percentage increase in house prices is as follows: the US - 11, Greece - 10, the UK - 10, Germany - 8 and France - 6.

Turkey: House prices rise faster than inflation

The real increase is more significant. This calculation takes inflation into account and shows adjusted growth. In the third quarter of 2022, the real annual increase in house prices in Turkey was 58 percent. In second place is Israel with an increase of 13 percent.

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Thirty-three of the 56 countries in the report experienced a decline in real house prices. In Peru and South Korea, the annualized real decline was 12 percent. In New Zealand, house prices fell by 9 percent, in Finland by 8 percent, and in Morocco by 7 percent. In terms of real price growth, prices were unchanged in France, down 1 percent in the UK and 2 percent in Germany.

Three cities from Turkey have entered the top 10

It was revealed last year that of the ten cities where house prices have risen the most in the last year, three are in Turkey. In a study covering 55 countries and 150 cities from 2020 to the second quarter of 2021, Izmir, Istanbul and Ankara were among the top 10. Izmir ranks second with a 30 percent increase, Istanbul ranks ninth with a 26.4 percent increase, and Ankara ranks tenth with a 25.8 percent increase.

Record home sales to foreigners in 2022

In 2022, a record has been set for home sales to foreigners. According to the Turkish Statistical Institute, 61,741 residential properties were sold to foreigners between January and November. Although the year is not over yet, this number has already gone down in history as a record year. In 2021, 58,576 residential properties were sold.

Istanbul and Antalya are the most popular cities among foreigners

Istanbul ranks first and Antalya second among the cities where foreigners buy homes. In the 9.5 years from 2013 to 2022, foreigners purchased 125,179 residential properties in Istanbul. In Antalya, the figure was 74,065. Data for 2022 reflect the first half of the year. According to this data, foreigners have purchased 257 residential properties out of every thousand in Antalya. In Istanbul, the figure was 111 out of every thousand. Canada, for its part, has banned the sale of real estate to foreigners until 2025. The reason for this was the difficulty of Canadian citizens in finding housing.