Last Updated on 05/04/2023
Turkey real estate market is one of the world’s most dynamic and powerful investment sectors. It attracts several foreign investors willing to buy a property in Turkey. This interest is either for real estate investment or relocation purposes. Official data has shown recently a high demand for properties for sale in Turkey from international investors. They are interested in a variety of reasons, including real estate investment stability and housing quality.
Yet, the recent Turkish real estate market prosperity worries many investors. They wonder whether the market has exhausted all its chances or if it is still promising in the future. In this article, we will try to satisfy their curiosity and point out the trends and expectations of the Turkish real estate market.
Update Turkey real estate market overview
Turkey real estate market is appealing due to its transportation infrastructure, entertainment options, and a developed construction field. Moreover, being at the crossroads of Europe and Asia, Turkey is emerging as a real estate investment hotspot. The market promises prominent real estate prospects, with high-value and profitable properties for sale in Turkey.
Moreover, the Covid-19 pandemic was not a crisis in Turkey real estate market. In fact, decreasing interest rates kept Turkey’s property sales active in 2020. A large number of home sales in Turkey occurred that year.
Turkey real estate market’s trends
FDI increase in Turkey real estate sector
Due to legislative amendments that eased citizenship acquisition requirements for foreigners, campaigns launched by real estate developers and banks, and a spiking foreign currency that brought an annual record of 78.4 percent increase in 2021 compared to the previous year, the number of house sales to foreigners has accelerated in Turkey.
Moreover, Istanbul, the country’s most populous metropolis, has remained the top option regarding properties for sale in Turkey. According to government sources, Residential property sales to foreigners in the city grew by 25% year on year to 2995 in September 2021, compared to 2370 in September 2020. When it comes to nationalities, however, Iraqi citizens continue to be at the top of the list of foreign buyers of residential homes. Then come Iran (7622 units), Russia (4494 units), Afghanistan (2508 units), and Germany (2062).
Competitive atmosphere
The Turkish real estate market has a competitive atmosphere, especially in residential real estate. In order to satisfy the increasing demand for properties for sale in Istanbul and other Turkish cities, developers and pioneer construction companies have been competing to build high-standard residential properties with exclusive features. Furthermore, this competitive situation includes also payment plans with flexible opportunities.
Istanbul, the backbone of Turkey real estate market
Istanbul real estate is one of the world’s most promising real estate markets. This ever-changing hub is a world-class destination for tourism, education, business, economy, and trade. Hundreds of apartments, villas, and commercial properties are sold every day as the city strives to become one of the world’s top financial centers.
According to the Turkish statistical institute, Istanbul ranked 1st in March house sales in Turkey with 23974 units sold consisting thus 17.9%.
Future success indicators of Turkey real estate in 2022
A continuously active real estate market
During the first two months of the year 2022, 185,893 real estate sales transactions were completed in Turkey. In fact, according to the Turkish Statistical Institute, 97,587 real estate sales were completed in January 2022, while 88,306 properties were sold in February 2022.
These observations are promising signs for international investors who think to buy a property in Turkey. In fact, experts estimate Turkey real estate market to achieve around an 8% of CAGR between 2022 and 2027.
New real estate projects
Moreover, we notice that government and developers bring new projects to Turkey real estate sector, especially in Istanbul. This refers to conclude that the number of investors willing to buy a property in Turkey keeps increasing. Consequently, the demand for properties for sale in Turkey is still high. In fact, Emlak Konut announced the construction of 900 residential units in February 2022 with a total construction cost of TRY 3.1 billion. We should note that the project will complete by the end of 2024 and is located in the Sariyer district.
Similarly, Ofton Construction announced the building of three residential complexes named Bomonti, Levent, and Nisantasi in January 2021, scheduled to be finished by 2025.
A developed economy
Moreover, the developed economy of the country is a big guarantee for investors hesitating to invest in Turkey. In fact, with a GDP of $719.95 billion in 2020, Turkey ranked the world’s 19th largest economy. And we should note that there are efforts of the government to reach the top 10 economies in the world within Turkey’s 2023 vision. In fact, according to the International Monetary Fund’s (IMF) World Economic Outlook April 2021 report, Turkey ranks 11th in the world in terms of GDP at PPP in 2020, up from 13th the year before. We should also remind that it was the 18th in the year 2003.
The IMF also Showed Turkey’s economic growth to 6% in 2021, up from 5.5 percent previously. After India and China, Turkey is currently among the top three rising economies with the highest growth forecasts for 2021.
If you would like to know further details about the real estate investment in Turkey, MEO Consultants offer you a complete advisory.
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