Turkey's residential property market in 2024 balances opportunities and challenges, driven by economic dynamics and international demand.

The residential real estate sector in Turkey continues to evolve, shaped by dynamic economic conditions, changing demographics, and international demand. As we move into 2024, the market is expected to experience fluctuations aligned with local and global developments. The Turkish housing market is underpinned by its strategic location, offering buyers a unique crossroads between Europe and Asia, attracting investment from both domestic and international audiences. Over recent years, urbanisation, population growth, and tourism have spurred the demand for housing, especially in metropolitan areas such as Istanbul, Izmir, and Ankara. However, the volatile economy, fluctuating currency, and rising costs of financing present challenges to growth.

The demand for residential properties shows a diverse behavioural trend, ranging from local buyers seeking affordable housing opportunities to wealthy international investors drawn to luxury developments. Additionally, the government’s citizenship by investment programme has amplified interest in premium real estate offerings. Despite these opportunities, accessibility to housing remains a concern, influenced by price escalations and cost-of-living pressures.

Turkey’s unique architectural character further influences its residential real estate market. Modern high-rise developments coexist with traditionally styled homes, making for a rich, competitive market aligned with a variety of buyer preferences. The construction sector in Turkey remains a critical driver of the economy, with residential projects forming the backbone of urban development. However, building regulations and rising environmental considerations are steering the market towards more sustainable, energy-efficient housing designs.

Moving forward, investors will likely focus on how broader market factors, such as interest rates, inflation fluctuations, and governmental policies, impact property values and market stability. While 2024 presents promising opportunities, prudent decisions will require careful examination of both short-term trends and Turkey’s overall economic trajectory.