Last Updated on 20/04/2023
Is real estate investment in Turkey still viable in view of the currency volatility experienced during the previous phase and the current change in the country’s economy? Is it a good idea to invest in Turkish real estate in 2023?
Learn about the best real estate investment in Turkey in 2023 and whether it will continue to offer the same benefits that have drawn investors’ attention so far.
Real Estate Investment in Turkey 2023
Turkey is a global center of attraction for foreign investors and businessmen due to its solid foundation upon which various types of investments are built, as well as the numerous investment opportunities it offers in various sectors, including real estate, industrial, commercial, agricultural, and other available investment fields.
Real Estate Investments in Turkey- Overview
We can refer to the previous years as the golden age of Turkish real estate given the great prosperity and tremendous development that the real estate sectors had experienced. This is especially true given the unprecedented rise in real estate prices, the record-breaking number of homes sales, and the high rates that foreign investors experienced when purchasing and selling properties.
There is no question that the period of prosperity and growth in the real estate sector was not a coincidence; rather, it was the result of careful planning on the part of the Turkish government, which passed legislation encouraging investors to make their real estate investment in Turkey and revised the rules governing obtaining citizenship by real estate investment in Turkey
Increase of Foreign Real Estate Investment in Turkey
The rate of foreigners purchasing properties in Turkey has increased since 2015, according to the Turkish Statistical Institute‘s official figures on apartment sales.
The number of apartments sold to foreigners reached 24 thousand 953 in 2022. This is one of the highest numbers in the previous ten years in terms of foreign real estate investment in Turkey according to official data.
Due to changes made to Turkish citizenship laws; mainly, the reduction of the value of property eligible for Turkish citizenship from $1 million many businessmen have been encouraged to invest in Turkey.
Currency Fluctuation
The Turkish lira’s recent changes in value and significant loss versus other currencies raise the following considerations for investors looking to purchase real estate in Turkey. This leads us to wonder whether it is a wise decision to make a real estate investment in Turkey. We would like to say that despite how safe an investment might be, there is always a possibility of loss. However, savvy investors will be able to assess the success aspects of a project and take a bet on a structure that protects their interests.
Everyone is aware of the recent changes in the value of the Turkish lira, the rise in real estate prices, the alterations to the real estate market, and the growth in the cost of raw materials required for building and housing projects.
As a result, the Turkish Lira’s fluctuations constituted a significant component that foreign investors first benefited from. They were able to afford properties in the city’s core.
Rise of Prices to Substitute the Lira’s fluctuation
The prices of real estate properties in Turkey have also increased in line with the new value of the Turkish lira, which benefits international investors by enabling them to make profitable investments and lower the risk of their investment activities.
Additionally, purchasing a property in Turkey in installments while the Turkish lira is fluctuating is one of the benefits that also for international investors. To explain, as the Turkish lira continues to fall against the dollar, the value of the installments will gradually decrease.
Is Turkey Real Estate a good Investment?
The possible difference between the net profit and the investment cost resulting from the investment of some resources constitutes the investment return. In other words, a larger investment return indicates that the investment outperforms its cost.
Return on investment (ROI) is a performance metric that allows to evaluate an investment’s effectiveness or to compare the effectiveness of numerous investments. Investment returns are one method of connecting earnings to the investor’s cash, strictly speaking.
To reach the annual percentage of profits through investment returns, by reselling or leasing up to 20% of the original property value, we must note that unlike other investments made in other countries, where the capital in the property maintains its real worth, the method used to determine real estate investment returns in Turkey is unique. and the value of the property may frequently increase.
It is important to note that the MEO Consultants team, which has extensive experience in the Turkish real estate market is constantly working to offer free consultations and the necessary advice that protects you from the possibility of suffering a loss during real estate investment.
