Last Updated on December 30, 2023 by Aydoğan Aknar
Turkish Cities Leading Global Rankings: Surprising Property Value Surges
In the dynamic landscape of global real estate, certain cities have been witnessing unprecedented increases in property values. Despite the challenges posed by rising interest rates in 2023, the allure of real estate investment remains strong in popular cities worldwide. Notably, Turkey has emerged as a standout performer, with two Turkish cities leading global rankings and securing the top spots for the most robust annual price increases over the past 12 months, according to a recent report by Knight Frank.
Ankara Takes the Lead:
The Turkish capital, Ankara, has claimed the crown in this global ranking, experiencing a staggering 102.7 percent increase in housing prices compared to the same period last year. This exceptional surge has propelled Ankara to the forefront of cities with the most appreciating real estate values worldwide. The report underscores that property prices in Ankara have effectively doubled in comparison to the previous year, defying the challenges posed by the prevailing economic conditions.
Istanbul follows closely:
Following closely behind is Istanbul, Turkey’s largest city, securing the second position with an impressive 77.6 percent yearly increase in housing prices. The report sheds light on the remarkable growth in Istanbul’s real estate market, contributing to Turkey’s overall dominance in the global property value surge.
Alanya’s Rise to Prominence:
While Ankara claims the crown with a staggering 102.7 percent increase in housing prices, Alanya, situated on the country’s southern coast, has been instrumental in driving Turkey’s real estate boom. The city’s strategic location, stunning Mediterranean views, and a burgeoning tourism industry have contributed significantly to the surge in property values. Investors are increasingly recognizing Alanya as a prime destination for real estate opportunities, further enhancing its importance in the global context.
Global Trends and Observations:
Despite Turkey’s notable achievements, the report highlights that this trend is not exclusive to the country. Dubai claims the third spot with an 18 percent annual price increase, signaling the continued resilience of the real estate market in the Middle East. Meanwhile, Zagreb, the capital of Croatia, secured the fourth position with a 14 percent rise in property prices. Rounding out the top five is Athens, the capital and largest city of Greece, boasting a 12 percent increase in housing values.
Factors Behind the Surge:
The report attributes these remarkable value increases to several factors, including low inventory levels, wage increases surpassing inflation rates, rising household savings, and limited new construction activity. These elements collectively contribute to the upward trajectory of property values in these cities.
Global Market Dynamics:
A noteworthy observation from the report is the contrast seen in European markets. Cities such as Stockholm, Bratislava, and Frankfurt experienced double-digit annual price declines when compared to the previous year, illustrating the diverse dynamics at play in the global real estate landscape.
As the global real estate market navigates through various challenges, the surge in property values in certain cities remains a compelling narrative. Turkey’s dominance in the latest rankings, particularly with Ankara and Istanbul leading the way, showcases the resilience and attractiveness of its real estate market on the global stage. However, as highlighted in the report, global dynamics, including changes in interest rates, warrant continued observation for potential impacts on future trends in the real estate landscape.
