The number of foreign buyers purchasing homes in Turkey has seen an upward trend in recent years. This can be attributed to a variety of factors such as Turkey's growing economy, its desirable climate and natural beauty, and its reputation as a popular vacation spot.
It may be necessary to adjust certain data types for better analysis to gain a deeper understanding of the factors that influence foreign house sales in Turkey. All the data I used in the analysis study were taken from the Turkish Statistical Institute (TURKSTAT) website. Before starting analysis, I thought that it can be useful to convert data such as construction costs and exchange rates from raw data into more meaningful metrics. It can provide a clearer picture of trends and patterns in the housing market, and we can make more accurate predictions about future growth by cleaning and transforming the data in this way.
Shares of Sales to Foreigners in Turkey
Actually, the overall sales of houses in Turkey remained stable during this period. Sales to foreigners accounted for a small percentage as 3% of total sales. The sales to foreigners share was within the acceptable range of 3-5.5%, which suggests that foreign demand for homes in the country was not significantly impacting the domestic market.
It is crucial to monitor foreign demand for homes in the country, as excessive foreign demand could lead to higher prices and make housing less affordable for domestic buyers. Efforts should be made to maintain a balanced mix of domestic and foreign demand to ensure the long-term stability of the housing market.
To provide a more detailed picture of the current state of foreign house sales in Turkey, I am sharing some key statistics below:
- In 2021, the number of foreign house sales in Turkey reached a record high of 58,576, which represents an increase of 43,35% compared to the previous year.
- The majority of foreign house buyers in Turkey are from Middle Eastern countries, such as Iraq, Iran, and Kuwait.
- Russia's house purchases have increased, which may be a result of the Ukraine war.
- The most popular cities for foreign house buyers in Turkey are Istanbul, Antalya, and Bursa .
Construction Cost and Turnover index Comparison
The construction cost index and turnover index were compared for the year 2015 and subsequent years. The construction cost index exceeded the turnover index, indicating that the cost of construction was outpacing the revenue generated from construction projectsin 2019. This trend continued in the following years, with the construction cost index consistently exceeding the turnover index.
This trend is cause for concern as it suggests that the construction industry is becoming less profitable over time. It may be necessary to reassess business strategies and cost-saving measures in order to address this issue and improve the financial viability of construction projects. It is also important to keep an eye on any changes in market conditions that may be contributing to the widening gap between the construction cost index and turnover index.
European Cost Index
The construction cost index in Turkey has been increasing at a faster rate compared to the construction cost index in Europe. Te construction cost index in Turkey has increased at least six times more than the construction cost index in Europe over the past years. This trend suggests that the cost of construction in Turkey is rising more quickly than the cost of construction in Europe.
Understanding the reasons behind this trend is important to address the issue and improve the financial viability of construction projects in Turkey. It may be necessary to reassess business strategies and cost-saving measures in order to better manage construction costs in Turkey. It will also be important to keep an eye on any changes in market.
This study includes some analysis from one of my recent projects in the data analytics master's program. All plots were created in the R environment except European Cost Index.
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