The recent earthquake disaster has left a profound impact on the housing market in Istanbul, reshaping preferences and driving significant shifts in property values. This report delves into the repercussions of the earthquake on housing prices, with a specific focus on distinguishing between newer constructions (0-4 years old) and older ones (16+ years).
Earthquake’s Impact on Housing Prices
The seismic event sparked a surge in housing prices, particularly in newer buildings, as residents of Istanbul, haunted by the memories of the devastating 1999 Marmara Earthquake, sought refuge in safer structures and regions. Notable regions and their respective value increases include:
- Arnavutköy: Witnessed a remarkable 48% increase in property values.
- Atasehir: Registered a 43% surge in housing prices.
- Avcilar: Experienced a 34% boost in property values.
- Bağcilar: Notable for its 57% increase in property prices.
- Bahçelievler: Saw a substantial 41% uptick in housing values.
Migration Patterns
Görkem Ögut, representing Endeksa, underscored the heightened migration within Istanbul, as people gravitated toward newer buildings over their older counterparts. This migration trend towards modern properties has further propelled housing prices, as they are perceived as safer options. Ögut also noted a significant wave of migration from east to west within Istanbul, highlighting the profound impact of the earthquake on residents’ choices.
Differences in Value Between New and Old Residences
Comparing rental values and price changes between new and older residences in areas like Beşiktaş and Tuzla reveals significant disparities. New constructions (0-4 years old) typically command higher rental values compared to their older counterparts (16+ years), a trend even more pronounced in areas considered to be at higher risk of earthquakes.
Specific Area Insights:
- Beşiktaş: New constructions witnessed an annual value change of 80.60%, while older buildings experienced an 88% increase.
- Tuzla: New constructions in Tuzla saw an impressive annual value change of 150% in rents, while older buildings observed a 135.57% change.
- Avcılar: New residences were priced at 19.428 TL/m^2, with an annual change of 111%, whereas older residences followed a similar trend, with prices around 13.490 TL/m^2 and a 110% increase.
- Beyoğlu: New constructions had an annual value change of 179%, priced at 40.749 TL/m^2. In contrast, older buildings were valued at 46.167 TL/m^2 with a 156% increase.
Endeksa’s Contribution
The CEO of Endeksa emphasized the platform’s pivotal role in providing comprehensive property insights. Endeksa offers an AI-powered real estate valuation tool, educates users about earthquake risks in specific areas, and empowers them to make informed decisions. They have ambitious plans to further enhance their platform with updated data to meet evolving market needs.
In essence, the recent earthquake has intensified the already surging demand for newer residences in Istanbul, especially in areas prone to seismic activities. This surge has significantly influenced housing prices, with newer constructions experiencing a more pronounced increase in value due to their perceived safety, marking a transformative period in the city’s real estate landscape.
