The second-hand housing market in Turkey is currently experiencing a significant surge. With more potential homeowners leaning towards this sector, the number of advertisements for second-hand homes has reached its highest in the past year. This trend is in response to several factors, including increased prices for new homes, recent natural disasters, and the perceived investment potential of real estate.

Rising Demand for Second-Hand Homes

Due to a growing demand, new house prices have seen a substantial rise, prompting potential homeowners to turn their attention to the second-hand market. This shift has been accelerated by recent devastating earthquakes in southern Turkey that occurred in early February, claiming over 50,000 lives and causing widespread destruction of buildings. As a result, safety has become a prime concern, leading to increased demand for sturdier, second-hand houses.

Additionally, property investment has seen an uptick in popularity, contributing further to the increasing prices of new homes.

Increasing Number of Second-Hand Houses for Sale

The highest number of advertisements for second-hand houses over the past year was recorded in March. This data was revealed by a study conducted by the Economic and Social Research Center (BETAM) at Istanbul-based Bahçeşehir University. The study, which collected data from the online classified advertisements platform sahibinden.com, found that the number of houses offered increased by 10.1% in March compared to the previous month, reaching 882,100.

This increase was particularly noticeable in Istanbul, Turkey’s most populous city, where the number of houses advertised rose by 12.9% monthly to around 253,000. The capital city of Ankara experienced an 11.5% increase to more than 87,000, while in İzmir, the third largest city, a total of 66,000 houses were put up for sale, representing a 13.1% increase from February.

Rising Demand and Decreasing Supply

Following the earthquakes, demand for second-hand houses fell in February. However, demand bounced back in March, increasing by 3.6% month-on-month and 10.5% from the previous year.

Interestingly, the duration for which house-for-sale advertisements remained on platforms also reduced. In March, advertisements stayed on platforms for an average of 46.3 days, which was about six days shorter than in February. The average duration was 46.1 days for Istanbul, 36.9 days for Ankara, and 53.5 days for İzmir.

Surging Home Prices and Rents

A separate report by Endeksa, a property market data collector, showed that home prices rose dramatically in the first quarter, jumping 154% year-on-year. The average house price reached 17,573 liras ($903) per square meter. Moreover, rents surged by a staggering 197% annually during the same period.

In response to soaring rents, the government has recently announced the extension of the 25% cap on rent increases. This cap, initially introduced last year and set to expire in July, will now be prolonged. Justice Minister Bekir Bozdağ mentioned last week that property owners who impose exorbitant rent increases may face imprisonment, alongside potential judicial and administrative fines.

Conclusion

In summary, Turkey’s second-hand housing market is witnessing a robust upward trend. Factors such as increasing new home prices, recent earthquakes, and the high investment potential of properties are driving this surge. The current market dynamics indicate that both buyers and sellers are adjusting their strategies in response to these changes, providing a unique opportunity for potential investors in the Turkish real estate market. However, with prices and rents rapidly escalating, it is crucial to navigate this evolving landscape wisely and with expert advice.