Turkey real estate market faces stagnation and urban renewal challenges

The Turkish real estate sector is facing significant challenges due to high inflation, rising construction costs, and high interest rates. In Batman, real estate consultants report a severe stagnation in sales as purchasing power declines and buyers shift investments toward gold and interest-bearing accounts.

Urban transformation projects are also causing friction. In Rize’s Yağlıtaş neighborhood, residents are protesting high costs, claiming that new housing prices are significantly higher than the value of their original homes. Meanwhile, in Istanbul’s Şirinevler district, urban renewal is actively reshaping the landscape as old buildings are demolished to make way for new structures.

To combat high financing costs, companies are introducing new models. RAMS Türkiye has launched a 60-month installment plan for its Maslak project, and arsaVev has introduced a two-stage model that separates land acquisition from construction costs to make homeownership more manageable.

On a technical level, geologist Prof. Dr. Naci Görür warned that urban transformation must go beyond replacing buildings; it must ensure that critical infrastructure like water, electricity, and transport systems are also earthquake-resilient.