How Did Property Prices in Turkey Change in 2024?

In recent years, Turkey's property market has drawn the attention of foreign buyers thanks to competitive prices and attractive investment conditions. The weakening of the Turkish lira in 2024 became an important factor shaping investor behaviour and price dynamics. In this article, we look at how the national currency's exchange rate affects the property market, what opportunities it creates for foreign buyers and what challenges local residents face.

• 1. Appeal to foreign investors

  The fall of the Turkish lira against major world currencies such as the dollar and the euro has made Turkish property more affordable for foreign buyers.

  • Greater purchasing power: As the lira weakens, property becomes cheaper for foreign investors in dollar or euro terms. For example, if an apartment cost 2 million lira in 2023 (about 105 000 dollars at 19 lira per dollar), then at 27 lira per dollar in 2024 the same apartment costs about 74 000 dollars.
  • Popular regions: Demand is concentrated mainly in resort areas (Antalya, Alanya, Bodrum) and in major cities such as İstanbul.

  Why do foreigners buy?

  • Attractive prices amid currency fluctuations.
  • Citizenship-by-investment programmes.
  • Rental income in hard currency.
• 2. Growing demand for luxury property

  The weaker lira is fuelling interest in premium property:

  • Foreign investors with substantial capital choose seaside villas, penthouses or luxury apartments.
  • Turkish developers actively price property in dollars or euros to minimise the impact of the unstable exchange rate on their profits.
• 3. Challenges for local buyers

  On the other hand, the fall of the national currency hurts housing affordability for local residents.

  • Rising lira prices: Because of inflation and more expensive building materials, property prices keep rising. For example, concrete, rebar and other building materials have become on average 40% more expensive over the past year.
  • Falling incomes: Local residents' purchasing power is declining, and mortgages are becoming less accessible.

  Example:

  In 2023, the average apartment in Ankara cost about 1.5 million lira. In 2024, the price rose to 2 million lira, putting it out of reach for many Turkish families.

• 4. Investing in income-generating property

  The weaker lira also creates opportunities to invest in income-generating property:

  • Rentals in tourist regions: Owners who rent to foreigners earn income in hard currency, which makes such investments especially profitable.
  • Long-term investment: Property in Turkey's major cities and resort areas continues to appreciate, attracting investors focused on preserving capital.
• 5. Risks for developers

  The fall of the lira also affects developers who depend on imported materials:

  • Higher costs: Many construction components (such as rebar and insulation materials) are imported, which makes projects more expensive.
  • Slower construction: Some projects are delayed due to rising costs and a lack of liquidity.
• 6. Outlook

  Experts believe Turkey's property market will continue to attract foreign buyers. However, its stability depends largely on a stronger economy and inflation control.

  Possible trends:

  • Continued growth of lira prices amid currency fluctuations.
  • Rising foreign demand in key regions.
  • A stronger shift towards settling transactions in dollars or euros.
• Conclusion

  The Turkish lira's exchange rate has a twofold effect on the country's property market. For foreign investors it opens up unique opportunities for profitable investment, while local residents face difficulties because of rising prices. Turkey remains attractive to international buyers, especially thanks to its strategic location, citizenship programmes and prospects for property price growth.

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