The Earthquake in Turkey: What Does It Mean for the Real Estate Market?

On February 6, 2023, a magnitude 7.7 earthquake struck Turkey’s southeastern region, killing over 48,000 people and destroying or severely damaging over 230,000 buildings. The earthquake has had a significant impact on the real estate market in Turkey, both in the affected areas and nationwide.

In the affected areas, the earthquake has caused a sharp decline in property prices. In some areas, prices have fallen by as much as 50%. This is due to a number of factors, including the damage to existing properties, the fear of future earthquakes, and the government’s efforts to encourage people to rebuild in safer areas.

The earthquake has also had a negative impact on the real estate market nationwide. Sales of homes have fallen by an average of 15% since the earthquake. This is due to a number of factors, including the fear of future earthquakes, the decline in property prices in the affected areas, and the economic slowdown in Turkey.

According to data from the Turkish Statistical Institute (TurkStat), residential property sales in Turkey fell by 18% in February 2023 from a year ago. The decline was most pronounced in the southeastern region, where sales fell by 40%. In Istanbul, the country’s largest city, sales fell by 15%.

The earthquake also had a negative impact on property prices. According to data from the real estate website Endeksa, the average price of a home in Turkey fell by 1.5% in February 2023 from a month earlier. The decline was most pronounced in the southeastern region, where prices fell by 3%.

However, it is important to note that the real estate market in Turkey is expected to recover quickly. The government has announced a number of measures to support the recovery, including tax breaks for homebuyers and builders, and increased funding for earthquake-resistant construction. In addition, Turkey remains a popular destination for foreign investors, and the demand for Turkish real estate is expected to remain strong.

Here are some numeric and statistic information that provide recovery will be fast:

• The Turkish government has announced a $100 billion fund to rebuild the affected areas.
• The Turkish construction industry is one of the largest in the world, and it is well-equipped to handle the reconstruction effort.
• Turkey has a long history of earthquakes, and the country has a well-developed earthquake-resistant construction code.
• The demand for Turkish real estate remains strong, both from domestic and foreign investors.

Overall, the earthquake in Turkey has had a significant impact on the real estate market. However, the market is expected to recover quickly, and the long-term outlook for Turkish real estate remains positive.