- 16% increase in housing sales compared to July 2023, with 19,047 properties sold in Istanbul.
- District performance varies: Beykoz up 22%, while Kağıthane falls by 8%.
- Continued demand for property for sale in Istanbul bolstered by favorable economic conditions.
As Istanbul’s real estate market continues to flourish, July 2024 marked a significant uptick in housing sales, reflecting robust consumer confidence and increasing interest in properties across the city. According to the Turkish Statistical Institute (TÜİK), a total of 19,047 homes were sold in Istanbul, demonstrating a remarkable 16% increase compared to the same month last year.
A Closer Look at the Market
The downtrend in prices that started in July 2023, has started to reverse as of July 2024. High interest rates have encouraged people with cash to stash their savings in banks until interest rates fall. With inflation starting to fall, eyes are on the central bank of Turkiye for the next steps in interest rate cuts.
Despite the overall negative sales figures, the property price landscape in Istanbul has performed resiliently. The Housing Price Index (KFE) experienced a nominal increase of 0.9% from the previous month; however, overall prices fell by 3.62%. District-level data reveals varying trends:
- Beykoz saw a substantial increase of 22%, reflecting its rising popularity among buyers.
- Beyoglu and Beşiktaş also experienced positive trends, with increases of 6.7% and 1.59%, respectively.
- Kadıköy and Üsküdar showed resilience with increases of 3.74% and 1.85%, highlighting their continued appeal in the market.
- Conversely, districts like Kağıthane and Küçükçekmece faced significant declines of 8%, while Sarıyer and Beylikdüzü fell by 9.9% and 11.7%, respectively.
- Percentage figures are calculated in USD – real prices have risen in Turkish lira, nominal prices have fallen when accounting for inflation.
This divergence in performance emphasizes the huge gains that certain regions made in the asset price boom after the economy in Istanbul boomed post covid lockdowns .
Optimistic Outlook Ahead
The upward trend in housing sales signals a potential continuation of this momentum in the coming months. Analysts suggest that ongoing demand, particularly for property for sale in Istanbul, coupled with the lack of new construction permits, will further stimulate the market. Expectations from analysts for the next six months are a nominal 48% rise in prices.
The trajectory of the real estate sector will remain contingent on broader economic conditions. Fluctuations in interest rates and the overall economic environment will be critical factors influencing buyer behavior and market stability. The last quarter of the year will be a good guide to what will happen to prices in 2025.
