In this article, we will talk about The Booming of the Turkish Real Estate Market.
Table of Contents
Turkish Real Estate market saw unimaginable growth in recent years due to its investment policies to attract foreign investment. Policies like citizenship through investing 400.000 in real estate property or holding 500.000 Usd in your bank account for three years.
The more attractive part of this policy is that Passport acquiring takes 4 to 5 months without requiring you to be in the country for specific days.
This means you have your Turkish Passport in your hands in 4 to 5 months without even being in the country.
Well, above mentioned reasons were just like a starter after seeing the demand for Turkish passports through investment. Developers started introducing uniquely designed projects with modern and green concepts as the competition increased, convincing many foreigners to make turkey their second home even though they didn’t need a Turkish passport. Such as Khaleej countries, mainly QATAR, KSA, UAE, and the list goes on.
Foreign and many Turkish buyers were looking forward to being part of the new concept investment. So, as a result, investors from around the world, regardless of whether they had Turkish passports reasons, started investing in Turkey, resulting in a booming Turkish Real Estate Market.
Turkish Real Estate Market Experiences Unprecedented Growth
In Turkiye, 1,165,381 houses were sold in 2014
In Turkiye, 1,289,320 houses were sold in 2015
In Turkiye, 1,341,453 houses were sold in 2016
In Turkiye, 1,491,856 houses were sold in 2021
In Turkiye, 1,485,622 houses were sold in 2022
Above are the official statistics taken from the Turkish statistical institute; even though officially the cost of construction by 2021 has increased by more than 100%, the prices were and are soaring high due to demand and the increasing construction cost. And still, house sales keep growing because of competition in the development and strong marketing generated by Turkiye. This shows how Turkey will have local and foreign demand for the properties. And will continue to flourish.
Real estate opportunities in Turkey attract foreign investors
Turkey’s extensive geographic territory includes coastal towns and other locations deep inside the country. As a result, most Turkish cities have real estate developments, but Istanbul, with its European and Asian sides, is always at the forefront of investments in real estate.
The most well-known Turkish cities for real estate investing include Ankara, Antalya, Bursa, Izmir, Kayseri, Izmit, Sakarya, and Trabzon. Hence, investors have many possibilities, creating new and expanding prospects throughout Turkey.
Turkish Passport through Investment:
A country like Turkey where development is at its optimum level. One of the most famous touristic destinations exists here. A land filled with history and has a flourishing economy at the border of Europe. The only country which gives you a mixture of east and west. A country where complicated modern infrastructure and green with mesmerizing nature allow you to be its citizen in just a span of 4 to 5 months with just a minimum of 400.000 USD investment. It is worth appreciating and grabbing the opportunity.
Residence permit through investment:
Turkey attracts not only from the citizenship investment policy. But also, you can have a residence permit in turkey by investing between 50.000 USD to 75.000 USD.
As of 2022, foreigners who own property in Turkey worth at least 50.000 USD to 75,000 USD could be granted a short-term resident permit. And the property must be a house and be used for residential purposes.
It is a favorable policy for people who may need more time to afford to acquire a passport through 400.000 USD immediately, so they have more options still to make turkey their home through minimum investment from a residence permit.
Infrastructure that leads to real estate growth:
The best real estate developments for any investor are those with high-quality infrastructure. When buying any property, it is crucial to consider the current sewage system, roads, public transportation, and other infrastructure.
Turkey makes significant investments in its infrastructure through massive, gigantic, and many projects; for instance, 13.478 km of new roads and 5.748 km of new motorways. Soon, the government plans to build a nationwide 10,000 km high-speed rail network.
With the completion of the four phases by 2028 and a total capacity of up to 200 million passengers yearly, Istanbul Airport is also anticipated to develop into a central international aviation hub. As a result of all these significant infrastructural improvements, the real estate market has been likewise affected.
We also discussed in detail on this issue at our following link https://optiononetr.com/istanbul-attracting-foreign-buyers/
Turkey is a Hotspot for Real Estate Investment Opportunities
- Attractive weather, cultural attractions, and tourism options: Turkey, located on the Aegean Sea, is a great place to buy vacation and permanent residences because of the warm weather, numerous tourist attractions like Bodrum, Marmaris, Fethiye, and a vast number of islands to explore. Tourists can find many cultural attractions in charming Turkish cities, particularly in Istanbul’s renowned bazaars, where many Hollywood blockbusters and film scenes are shot, like James bond.
- Growing Business Hub for Global companies: Istanbul already has two financial centers, but the city is almost completing its 3rd financial hub, IFC. The city’s regional and international financial center will be at the 300,000 m2 Istanbul Financial Center (IFM) Project. It will be a trailblazer for the financial sector. Furthermore, state-owned financial institutions like the Central Bank, Ziraat Bank, Halk Bank, and Vakflar Bankas are here to government organizations like the SPK and BBDK. Turkey aims to make its economy more competitive on the world stage. It also encourages the creation of products and services for the financial markets. By establishing IFC as a global finance center, you enable it all.
The IFC has 1.4 million square meters (15 million square feet) of office space. A 100,000 square meter shopping complex. A 2,100-person conference and performance area. A 30,000 square-meter five-star hotel and a parking lot can hold 26,000 vehicles. It is currently 90% completed.
- Prime Real Estate Bargains: When you compare the prices of any Large city in the world from Istanbul. Whether it be London or New York, you will find the prices per sqm in the center of Istanbul compared to London or New York are 3 to 4 times more. Even Turkeys Prime location has to offer affordable Luxury.
Turkish Property Values Skyrocket as Demand Surges
The Real Estate Market in Turkey records the highest growth rate. As mentioned above that, throughout the years, Turkish Real Estate has been growing.
Despite increasing construction costs globally, the demand remains high as Turkiye becomes a hotspot of investment for the surrounding neighbors.
According to data issued by TurkStat, the number of foreign homes purchased in Turkey increased dramatically by a whopping 20.4% to 61,104 units in the first eleven months of 2022 compared to 50,735 units in the same period last year.
The number of homes sold to foreign buyers was at an all-time high. In 2022, the Russian demand for buying property remained the highest.
The Future of Real Estate in Turkey 2023
Turkiye will need to launch a major development push in 2023. And when I say Turkiye has to, they have no choice due to a significant earthquake in Turkiye’s southeast.
Government and business developers will favor new construction that urbanizes the country’s older residences and structures to make them earthquake-resistant.
Not just the area that was affected by the earthquake. But, even in the regions that have not yet been affected, old buildings that are not earthquake resistant could suffer disastrous effects if a lesser earthquake hits them.