Why Are Housing Prices Increasing?
Frequently Asked:
Why are housing prices rising?
In the real estate sector, many are curious whether prices will decline. Although there has been a noticeable slowdown in the rate of increase recently, there hasn’t been a significant drop in prices.
Analyst and strategist Tuna Kaya, on his official X (Twitter) account https://x.com/tunakaya_yk, issued warnings for those considering buying or selling property.
In his post, Tuna Kaya stated:
“Don’t be lured by attractive interest rates and sell your home. What interest gives you in one year, real estate can provide in a month.
This is not a rational time to sell property.Large investors are no longer interested in real estate. Workers cannot afford to buy. Construction costs have increased, which has led to a decline in new housing development.
Turkey’s population is growing. The country is also receiving immigration. In the next three years, there will be a significant housing shortage. I expect a price explosion similar to the 2020–2022 period.
Selling the home you live in or your investment property during this time would be a major mistake.
Those who wish to buy a home should do so no later than Q1 of 2025. After that, they might not be able to afford it—and will likely face very high rents due to the housing shortage.”
Our Perspective as Oracle Construction
In tourism regions—especially Didim—there are multiple reasons behind the rise in housing prices. These are linked to both local dynamics and broader economic conditions.
Here are the main reasons why housing prices are increasing in Didim:
● High Demand
Didim attracts significant interest from those looking to vacation or own a second home. This demand, especially during the summer months, has made Didim stand out as an alternative to highly priced tourist destinations like Çeşme, Bodrum, and Fethiye. With its natural beauty, Blue Flag beaches, and historical charm, Didim has become a prime location.
This demand spikes even further during holiday seasons.
● Rising Construction Costs
As of February 2024, the Construction Cost Index rose by 3.41% compared to the previous month, and 70.05% year-on-year.
During the same period:
-
Material costs increased by 4.46% monthly and 54.82% annually
-
Labor costs rose by 1.48% monthly and a striking 108.98% annually.
These sharp increases in construction costs naturally reflect on housing prices.
● Investment Purchases
Tourist area properties draw major interest from investors seeking rental income or long-term capital gain. With new rental regulations in place, legal and well-structured rental projects will become increasingly popular in the near future.
● Limited Supply
Zoning and construction restrictions in tourist zones limit housing supply. When combined with high demand, this inevitably leads to rising prices.
● Infrastructure Development
Infrastructure investments such as roads, utilities, and transportation improve quality of life in these regions, which contributes to higher real estate values.
● Economic Growth
General economic growth and fluctuations in foreign exchange rates influence property prices. In particular, the rise in foreign currency exchange boosts the purchasing power of foreign investors—driving prices up.
● Seasonal and Long-Term Rentals
In tourist destinations, properties are often rented out short-term or long-term. This provides regular income for owners and increases the value of the properties—further pushing up prices.
In Summary
The main reasons behind the rise in housing prices in tourism regions are high demand, limited supply, and the region's attractiveness. These factors make real estate not only a place to live—but also a valuable investment tool.
Among all options, Didim is securing its place as a rising star compared to other tourist destinations.
For inquiries:
www.opdturkey.com
+90 530 417 7931
#SolarisBeachVillas #TurkuazBeaches #MarinaApartments #PropertyForSaleInDidim #Investment #PropertyForSale #PropertyInvestment #OracleConstruction #Home