Land plot prices soar as people seek alternative investment

ISTANBUL

Prices of land plots have soared as people with limited funds increased their demand, seeking alternative investments.

Strong demand for detached houses in the wake of the pandemic also gave a boost to the market.

Prices of land plots across Türkiye increased as much as 78 percent over the past year, according to Endeksa, which collects data on the real estate market.

The average price of land plots, which are suitable for building houses, climbed to 741,000 Turkish Liras (around $41,300) or 1,328 liras/square meter.

The highest increases in the prices over the past year were seen in the provinces of Istanbul, İzmir, the country’s third largest city and Antalya.

In Istanbul, the average price was 2,919 liras/square meter and İzmir it was 2,457 liras.

In Antalya, the average price climbed to 2,361 liras/square meter. Demand for houses have also been strong in Antalya since the start of the conflict in Ukraine. Russians and Ukrainians, who flee the war, have been relocating to Antalya, on the Mediterranean coast. Even before the war, the province was a popular holiday destination among Russian and Ukrainian tourists.

People in Türkiye are increasingly turning to land plots as an alternative investment because high dwelling prices prevent them from buying a home.

The sales other commercial properties, such as lands and offices, exceeded the home sales.

The residential property index increased 145.5 percent year-on-year in May, the Central Bank reported earlier this month. In June, a total of 151,000 houses were sold in Türkiye, up 11.7 percent from the same month of last year, according to data from the Turkish Statistical Institute (TÜİK).