In recent times, the real estate landscape in Istanbul has witnessed a noteworthy trend—a deceleration in the rate of price increase for luxury or “upper segment” housing. This phenomenon is backed by data provided by Endeksa, a prominent real estate data analysis firm. In this article, we delve into the key insights offered by this data, shedding light on the evolving dynamics of Istanbul’s housing market.
Segmentation for Analysis
To understand this shift, Endeksa categorized Istanbul’s residences into two distinct segments:
1. The Upper Segment: This category comprises properties with a minimum of 4 rooms, 2 bathrooms, security or a building attendant, and open or closed parking facilities.
2. The Lower Segment: In contrast, the lower segment encompasses residences with a maximum of 3 rooms, a single bathroom, and lacks the additional amenities found in the upper segment.
Price Statistics
Here’s a snapshot of the price statistics derived from Endeksa’s analysis:
– Upper Segment: The average price per square meter in this category stood at 47,682 Turkish Lira (TL), resulting in an average housing price of 13,207,914 TL.
– Lower Segment: The average price per square meter for lower-segment housing was 30,022 TL, with an average housing price of 2,701,980 TL.
– Istanbul Average: When considering the entire city, the average square meter price was 31,927 TL, translating to an average housing price of 3,831,240 TL.
– Turkey Average: On a national scale, the average square meter price across the country came in at 20,706 TL, with an average housing price of 2,691,780 TL.
Value Changes Over Time
Analyzing the value changes in the housing market over a specific timeframe provides valuable insights:
– From January to July 2023: Istanbul witnessed an overall increase in housing prices by 42.8%.
– Lower Segment: The lower segment demonstrated a value increase of 42.5% during the same period.
– Upper Segment: In contrast, the upper segment showed a more modest increase of 22.8%.
– Annual Value Change Rates: On an annual basis, Istanbul’s housing market displayed a remarkable 90.6% increase in value. The lower average segment wasn’t far behind, with a growth rate of 87.6%, while the upper segment recorded a comparatively lower rate of 50.5%.
Insight from Görkem Ögut
Görkem Ögut, the co-founder and General Manager of Indeksa.com, provided valuable insights into the data. He acknowledged that the significant surge in housing prices had been a topic of discussion for some time. However, he pointed out that the growth in housing value has started to slow down, especially in the luxury segment. Nevertheless, this deceleration is still in line with inflation rates.
Mr. Ögut highlighted several contributing factors, including rising construction costs and a shortage of housing supply. Consequently, he suggested that a significant decrease in prices is not anticipated in the near future.
Price Change Overview
To summarize, while housing prices in Istanbul continue their upward trajectory, it’s evident that the rate of increase for luxury or upper-segment housing is gradually slowing down compared to both the city’s average and the lower segment housing. This nuanced shift in the real estate market reflects the complex interplay of various economic and market factors, offering valuable insights for both prospective buyers and industry experts.
