Turkish Real Estate Market: The Ultimate Guide

Created : 08 Sep 2022
Turkish Real Estate Market

By Justin Mays:

One of the hottest commodities today has to be the Turkish real estate market. Turkish cities, specifically Istanbul, has been steadily climbing in popularity as an ideal location for European expats looking to relocate or those wishing to get an early foothold on some prime real estate. 

So what makes Turkey such an excellent place to buy a property? Here are some key facts you should know about this emerging market and why it might be worth your while to invest in it sooner rather than later.

The Economic Significance of the Turkish Real Estate Market 

Turkey offers everything the modern entrepreneur would want, including a stable political climate, low costs of living, an excellent educational system, and easy access to start-up capital. The Turkish real estate market is one of the hottest on earth, and investments in Turkish property provide the substantial potential for profit as many foreigners look to find cheap property in this region due to the recent financial crisis.

Turkey possesses one of the fastest-growing economies in Europe and has an excellent return rate on foreign investment. Buying real estate in Turkey provides opportunities for diversification outside regular options such as stocks and bonds.

Moreover, not only are investors getting into the booming Turkish economy with minimal risk, but they are also enjoying reduced tax rates, which means more money in their pockets at tax time. 

Some investors may wonder how long it will take before they see a return on their investment, but those who buy property soon will reap the benefits as prices continue to rise steadily and rapidly. 

Inflation is currently meagre, so buying properties now will help protect against inflation risk in the future since when prices go up, so does purchasing power. Investors can even benefit from rental income if they purchase property solely for rentals rather than reselling it after a short time. 

The Current State of the Turkish Housing Market

While real estate markets in many countries have been cooling, Turkey is enjoying a record-breaking year for residential property sales. The increased demand for housing in the country has been driven by a booming economy and abundant liquidity, with more buyers opting to make all-cash purchases. 

Turkish firms have invested heavily in foreign markets to take advantage of growth opportunities outside the country, which has helped create additional liquidity domestically. 

Meanwhile, the growing tech sector has produced thousands of jobs that offer average salaries well above those earned by other occupations in the country. Government initiatives to spur infrastructure and construction projects also improve employment for low-skilled workers.

The Turkish Economy is Growing

Recent economic reforms, decreasing inflation, and increasing interest rates make Turkey an ideal investment place. 

This year alone, the country's economy has grown by a staggering 1.8% much higher than the average for emerging markets. 

Inflation is also coming down from high levels. If this trend continues for the next few years at least, investing in Turkish property seems like an excellent idea right now. 

Low-interest Rates 

While property values in the US have plummeted, real estate in Turkey has continued to rise, and plenty of bargains remain. The country has seen rapid growth in recent years thanks to new construction and housing demand, but experts say structural factors are also at play. With low-interest rates, anyone interested in starting the property ladder might want to consider investing abroad.

These lower mortgage rates mean that buyers can get much more for their money than they would if they were buying in their home country. 

There’s also less risk involved when buying a house abroad because you don’t need to worry about your investment losing value due to inflation or currency fluctuations. As well as this, prices tend to stay more stable in other countries compared with fluctuations back home which means it’s more likely you will see an increase in your capital over time. 

And consulting reliable and trustworthy real estate agencies like us will be an added advantage. 

Consistency in Construction

The government has been addressing this issue in the last few years by emphasizing new construction, which boosts demand and puts downward pressure on prices. With high annual growth rates averaging 9.74%, the construction sector will continue to boom with favorable conditions for homebuyers and developers. 

However, this high growth rate does not seem sustainable for the future without a large influx of foreign capital and expertise, which might lead to an oversupply of housing. That being said, some analysts are skeptical about the prospects of such supply — citing excellent location, increased mobility, and rapidly developing infrastructure as key drivers behind demand going forward. 

Some also forecast a rise in other nationals buying property in Turkey due to demand. 

Foreign Investment on the Rise 

Forbes has stated that the boost has raised investment in Turkish real estate. We expect this number to continue to rise as the country seeks economic stability. 

One of the primary reasons for this jump is the weaker currency, making it much more attractive for foreigners to buy property. 

However, as most people know, one should also be wary of government interference and other unforeseen risks before investing in such markets.

Conclusion

One of the most overlooked parts of the world regarding real estate investment opportunities, Turkey has experienced serious growth over the past few years. 

If you’re looking for a solid investment opportunity in the near future, Turkish real estate might be what you’re looking for. Nonetheless, remember to seek help from a reputable real estate agent.

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