Foreign companies pay attention to Turkish real estate market - Latest News

With the election deadline coming to an end, the Turkish real estate market is beginning to show signs of revitalization as companies unveil new projects that were previously postponed. Foreign firms are also paying attention to opportunities in the local housing market after the election-related uncertainties are lifted. Foreign companies, which until now were mainly involved in buying real estate, are now also looking at developing projects in Turkey.

According to Ege Yapı Yönetim Chairman Inanc Kabaday, foreign investors' interest in Turkey has increased after the elections. "Foreignreal estate developers see huge opportunities in the Turkish market. We are in talks with companies from the Gulf and Central Asian countries to develop projects," he said. "We will see more foreign companies in the real estate market."

Kabadaya suggested diversifying financing for the sector.

The Turkish Statistical Institute (TÜİK) reported this week that annual growth in the construction cost index slowed from 60.7 percent in March to 53 percent in April. The monthly increase was 0.9 percent. Labor costs in the construction sector rose 0.18 percent month-over-month and 103 percent year-over-year. Monthly and annualized increases in the materials cost index were 1.4 percent and 40 percent, respectively.

In the first four months of 2023, home sales were down 18.6 percent from a year ago to 369,000, while mortgage-financed sales fell nearly 20 percent to about 81,000. In April alone, 86,000 homes were sold, indicating a 36 percent decline from the same month last year.