Firstly, the Turkish real estate market has historically been less expensive than markets in many Western countries, due to differences in economic conditions, wage levels, and construction costs. In Türkiye, labor and material costs for construction are generally lower, which helps keep property prices down.
Additionally, Türkiye has a significant supply of housing, which can lead to more competitive pricing. In some regions, especially those outside major cities like Istanbul and Ankara, there is an oversupply of residential properties, contributing to lower prices.
The economic landscape also plays a role. Fluctuations in the Turkish lira can impact property prices, making them seem cheaper for foreigners who exchange their currency for lira. However, this exchange rate volatility also introduces risks, as property values can be affected by currency fluctuations.
Moreover, the Turkish government has encouraged foreign investment in real estate through various incentives, such as easier regulations and favorable residency options. These measures can drive demand and sometimes lead to more affordable housing options to attract buyers.
Lastly, the cost of living in Türkiye is generally lower than in many developed countries, which reflects in housing prices. This affordability is part of a broader economic context where various goods and services, including real estate, are less expensive compared to more developed markets.