Real Estate Market in Turkey

Real Estate Market in Turkey: Turkey is a wonderful area to acquire property because of its beautiful weather, strong cultural identity, stunning scenery, and massive infrastructural investment. However, as with every real estate market around the world, information is essential for making a sound investment. With that in mind, let’s take a look at how the Turkish property market is doing, where you should invest, and how to make sure your property acquisition adds value to your portfolio.

Many people believe that investing in Turkey’s real estate market is a sensible decision. The world’s attention is now focused on Turkey, whose housing market has yet to establish itself in many locations. The market concentrates upon domestic Turkish property sales but heavily features offshore real estate portfolios as a strong performer in specific sectors. As a result, many foreign homebuyers are drawn to Turkey, and the appeal is understandable.

Why are domestic sales decreasing?

Despite strong global sales, domestic sales in Turkey declined due to the Turkish lira’s instability, the economy, high interest rates, and rising inflation. Policy disagreements exist between the government and the Central Bank of the Republic of Turkey. To improve mortgage performance, the government intends to cut interest rates. Domestic sales in Turkey will not pick up anytime soon due to the Turkish lira’s uncertainty, which is projected to linger a few years.

International Property Sales

Results from Turk Stat, Turkey’s statistics information center, can be used to determine the current performance status. They claim that, despite domestic sales slowing due to high interest rates, 4,495 properties were sold to foreigners in July 2021, a 64 percent rise year over year. Istanbul, Antalya, Ankara, Mersin, and Bursa were the most popular provinces in Turkey. In 2020, 40,000 out of 1.5 million home sales in the country will be to foreigners.

Why Foreigners Invest in Turkey?

One man’s catastrophe is another man’s opportunity, as the saying goes. In terms of monetary policy, people from foreign nations now receive more Turkish lira than they did previously. Furthermore, the Turkish housing market is still in its infancy when compared to western real estate markets. Turkey‘s redevelopment barely began roughly twenty years ago, thus there is a lot of room for capital appreciation in many locations. Istanbul, as well as many other Aegean and Mediterranean cities, have strong liquidity thanks to buyers’ domestic and worldwide marketplaces. Add to that the opportunity to purchase new housing as a result of mass development. Overall, we can see why foreign buyers consider Turkish real estate to be a smart investment.

Real Estate Investing Tips

If you want to expand your portfolio, don’t buy property right away because some places in Turkey have a higher price growth potential than others. First and foremost, consider this a long-term investment. If you sell your home before five years, you’ll have to pay capital gains tax. You’ll also have to pay tax on your rental revenue. In Turkey, off-plan properties have a better chance of increasing in value than resale homes. The most important aspect, though, is to conduct research locally. Don’t make a purchase in a typical neighborhood. Instead, find a location where the local government actively invests in the community through transportation, infrastructure, and tourism markets, like in Turkey’s Aegean and Med.

Turkey’s house prices are increasing

Housing prices have grown for two key causes by 2021. For starters, due to growing construction material prices, the cost of creating Turkish real estate has increased. Second, when more Turkish purchasers realize that the COVID-19 infection is not going away, they are fleeing Turkey’s congested cities. Instead, they prefer to buy villas with private swimming pools and gardens in little seaside communities. Apartment living was formerly fashionable in Turkey, but that is no longer the case. Prices are rising as a result of the spike in demand.

Buying Real Estate in Popular Areas

Izmir: Despite not ranking for foreigners, Izmir is the third most popular city in Turkey. This is unsurprising given that Izmir is Turkey’s third-largest city and a major commercial center. Furthermore, outskirt resorts such as Cesme, Foca, and Alacati are popular destinations to own a vacation house or retire.
Antalya is the second most popular destination for foreign purchasers, despite not being among the top three for Turkish buyers. This popularity originates from its reputation as Turkey’s top beach vacation destination. Antalya was put on the map for investment thanks to the Konyaalti marina project. Additionally, the coastal districts of Konyaalti and Lara are well-known throughout Turkey for their residential holiday homes.
Ankara: When it comes to domestic house sales, Ankara is ranked second, and abroad sales are ranked third. Professionals wishing to work and live in Ankara, as well as consumers buying as a long-term investment, account for the majority of outside transactions.
Istanbul is the most popular destination for both domestic and international property buyers in Turkey. If you’re searching for a mid- to long-term investment, districts on the European side provide a lot of potential capital growth. Despite the fact that it is not Turkey’s capital, Istanbul is a major economic center and home to the country’s most popular real estate sector.

Is Citizenship by Investment a viable option?

Approximately 7,000 persons got citizenship in Turkey by investing in real estate in 2020. So, if you’re thinking about it, all you have to do is buy a house worth at least $250,000 and commit to keeping it for at least three years. It’s as easy as that. Here’s where you may learn more about citizenship investing in Turkey.

Investigate the Turkish Real Estate Market

You can learn more about property in Turkey by looking through our selection of apartments and villas for sale in a variety of locations throughout the country, including Istanbul, Antalya, Bodrum, and Fethiye. Each listing includes the price, location, and characteristics of the home, as well as contact information for further information or to schedule a viewing. If you have any additional questions, please contact us now to talk with a local sales advisor about the Turkish real estate market.