Balances have shifted in land investment: The highest-earning locations have been identified

According to data from the real estate information platform Endeksa, a trend of real decline has begun in the prices of non-zoned land, for which demand had increased particularly during the Covid-19 pandemic. It has been observed that the rate of increase in land prices, which had risen approximately 10-fold since January 2021, has slowed down over the past year and remained below inflation.

In major cities such as Istanbul, Ankara, and Izmir, land price increases also remained behind the Consumer Price Index (CPI).

REAL RETURNS IN LAND INVESTMENT HAVE WEAKENED

Compared to the annual CPI level of 32.37 percent, the average land price increase across Turkey was 14.67 percent.

When examining province-based data, it was seen that land prices increased above inflation in only 9 provinces. Diyarbakır and Kırşehir were among the provinces that remained furthest above inflation with increase rates of over 60 percent. Uşak was the only province from Western Anatolia to enter the list.

RETURN DISTRIBUTION IN THE 9 PROVINCES EXCEEDING INFLATION

According to data featured in Türkiye Gazetesi, the provinces that provided returns above annual inflation and their average square meter prices were listed as follows:

Diyarbakır: Average square meter price 1,861 TL - Percentage change 69.34 percent

Kırşehir: Average square meter price 299 TL - Percentage change 61.62 percent

Hakkâri: Average square meter price 1,974 TL - Percentage change 47.75 percent

Bingöl: Average square meter price 713 TL - Percentage change 45.81 percent

Uşak: Average square meter price 207 TL - Percentage change 39.86 percent

Şanlıurfa: Average square meter price 1,289 TL - Percentage change 37.27 percent

Muş: Average square meter price 1,014 TL - Percentage change 36.47 percent

Şırnak: Average square meter price 1,639 TL - Percentage change 34.12 percent

Trabzon: Average square meter price 1,810 TL - Percentage change 32.70 percent

THREE MAJOR CITIES REMAINED BELOW INFLATION

Over the past year, land prices increased by 20.38 percent in Istanbul, 12.61 percent in Izmir, and 8.04 percent in Ankara. These increases remained below the level that would ensure investors are protected against inflation.

INVESTMENT PREFERENCE SHIFTED TO INTEREST AND GOLD

Sector representatives state that land does not offer rental income like housing and is not a liquid investment vehicle. It is noted that the high-interest environment and rapid movements in gold prices have directed investor interest toward different areas, and it is assessed that the demand for land has decreased.

News Source: 12punto