Last Updated on 03/06/2023
Recently, the Turkey real estate market has witnessed many updates. It has undergone many evolutions, whether in property prices or some regulations. Consequently, foreign investors started to wonder if it was a good time to invest in Turkey real estate market.
This article will try to satisfy their curiosity by presenting the Turkish real estate market’s recent features.
Turkey Real Estate Market Recent Overview
In Turkey, 185,893 property sales transactions were completed in the first two months of 2022. Yet, according to the Turkish statistical institute’s official data, Turkey real estate sales in March recorded a remarkable increase with 134,170 houses sold. In fact, the demand increased remarkably due to the inflation rate, which reached 60% in March 2022.
These observations are encouraging for international investors considering purchasing property in Turkey. Experts predict that the Turkish real estate market will grow at an annual rate of 8% between 2022 and 2027.
Currency Depreciation Boosts Turkey Real Estate
The Turkish Lira has been losing its value against foreign currencies since November 2021 after the decrease in the interest rate. To clarify, in February 2022, the Turkish Central Bank decided to keep the interest rate unchanged.
However, this might not be good for those whose income is in Turkish Lira. Yet, it is an advantageous situation for foreign investors whose assets are in foreign currencies. In fact, the Turkish Lira depreciation has been boosting the Turkey real estate market. House sales increased as demand raised. Thus, the prices rose to substitute for the currency loss and preserve the property value. Consequently, the market found its balance again, which makes the real estate sector solid and safe.
Real Estate Sector During the Pandemic
Falling interest rates kept Turkey real estate market active in 2020 during the COVID-19 pandemic. The year had the highest number of home sales ever recorded. In fact, the international transportation paralysis caused by the Covis crisis was not an obstacle to buying properties in Turkey. To clarify, real estate transactions continued online in an effortless way.
How to make a good investment in Turkey real estate
As we saw above, despite the Turkish Lira’s instability in 2021 and the pandemic challenge, Turkey real estate market is still booming, and 2022 appears to be on track to establish new records for the number of properties sold to foreigners. So you can be sure that it’s undoubtedly an excellent time to invest in Turkey if you are considering an important revenue in the near future. Yet, foreigners wishing to invest in Turkey should investigate well before making a move. Certain places have more potential for capital growth than others. Here is some advice about where to buy a property in Turkey.
Moreover, note that Off-plan projects are an excellent option to consider for a good investment in Turkey real estate. In fact, they allow you to benefit from the reduced launching prices. Besides, they offer 0% interest flexible payment plans with installments of up to five years.
Furthermore, the project’s surroundings and immediate environment are important features for a successful investment. In fact, the more the area is equipped, the higher investment income you get. In fact, transportation alternatives, shopping facilities, and health and education institutions increase the value of the property in Turkey.
If you would like to know further details about the real estate investment in Turkey, MEO Consultants offer you a complete advisory.
Learn more about our services.
