By Justin Mays:
It's no secret that the Turkish real estate market has been extensively developing for the last few years. Foreign investments rose by double followed by a consistent trend. Thanks to the Turkish government, the growth of property sales also increased because foreigners were enabled to receive a residence permit for an investment of $400,000. Real estate experts claim that luxury and low-budget properties in Turkey are the best investment solution.
Turkey provides a friendly investment environment, huge perspectives of economic development, construction of top quality, and property rates and taxes lower than in other popular European countries. But it's suggested that you first define your purpose for buying property in Turkey. Be clear on whether you wish to invest for future gains, residence or citizenship.
Why buy property in Turkey?
The combination of ‘Western’ quality of life and ‘Asian’ potential to work on the economic front makes Turkey a great place for investment. The upgrade of housing architecture trends and developed legal systems have added to the demand for Turkish properties. Let’s check out the reasons why buying real estate in Turkey can be a profitable decision.
Relatively affordable housing: Compared to many other countries, housing here is comparatively cheaper. The attractive home prices are what mainly attracts foreigners.
Best for the long term: Since Turkish real estate has the potential to offer good ROI in the future, it becomes a great option in terms of future investment. With minimal annual maintenance, a well-kept property can bring huge returns in the future.
Housing options: Investors have multiple choices while picking a property for investment. Luxury or budget, newly built or off-plan, apartments or villas, buy or resale, sea view or basic, and so on.
Cost of living: As compared to any North American or European country, the cost of living in Turkey is fairly affordable. Essentials like fruits, vegetables, and groceries are cheap.
Buying process: The Turkish government has been ensuring an easy buying process through necessary measures to attract investment in the real estate market.
Turkish citizenship: A Turkish property brings with it Turkish nationality. The Turkish investment scheme lets foreigners invest a minimum of $400,000 and get a Turkish passport and citizenship within 60 days making Turkish real estate an ideal investment option.
Student opportunities: The children get a chance to study in Turkish universities (both private and public) and live in an Arab environment while enjoying European civilization.
Real estate market growth potential in Turkey
Turkey attracts foreigners because of its transportation facilities, tourism, entertainment, and culture. Istanbul emerges as a rising star full of real estate opportunities and stands out with high value-added and profitable properties.
The Turkish residential real estate market is expected to register a CAGR of approximately 8% during the forecast period (2022-2027). In the pandemic year 2020, Turkey saw the biggest number of home sales in history. In the middle of increasing demand and limited supply, Turkey's residential real estate market is growing faster than any European country.
Turkish real estate is becoming increasingly popular amongst investors. The year 2022 witnessed an increase of 6.7% in sales of residential properties and a growth of 26.9% in the real estate bought by foreigners.
Demand for rental properties
The demand for the rental market is getting as strong as the commercial and residential properties. Due to the growing number of visitors and interested foreign investors, the market is growing as ever. Turkey is no longer a tourist destination but also one of the favorite holiday homes.
Buying a property in Turkey with the aim of selling and making a profit
There can be multiple reasons for buying property in Turkey but if your aim of buying real estate is to sell it for profit, it's a good idea! The growth prospects of real estate are growing and driving investors' interest in the Turkish housing market.
By reselling a property, the investors can get long-term passive income or instant gains. According to Forbes, up to 80% of foreign buyers bought residential properties in Turkey as a source of future gains.
Is reselling Turkish real estate profitable?
Turkey has entered the top 20 most attractive countries for real estate investment in 2021 because of its strong economic competitiveness. Turkish real estate attracts buyers from around the globe for the top-quality construction, comfortable life, and affordable prices.
How is Turkish housing sold for profit?
The market entry prices are low even with a steady growth of the new and secondary properties.
The steady demand for housing means helps in finding a buyer quickly.
The transactions happen very fast within 2-3 weeks thanks to the established system of state regulation in the real estate sector
Even at low rates of price growth, housing remains a valuable asset.
New off-plan buildings in Turkey for resale are usually sold for 15-25% more after the commissioning of the property which can go up to 35% depending upon the location and features of the property.
Prime Property Turkey is there to help to make profits by reselling in Turkey. Our decade of expertise and experienced sales staff will help you with finding the right buyer. With our legal professionals, you can be sure of things being done the right way by knowing the dos and don’ts of buying property in Turkey.
Development of new projects in Turkey
The government has taken many steps for strengthening the infrastructure of Turkey in the near future. Many ongoing and upcoming projects have the potential to make Turkey one of the 10 world's most powerful economies.
The largest housing project: 800,000 properties
This project includes the construction of 500,000 apartments, the provision of 250,000 plots of land suitable for reconstruction, and providing 50,000 workplaces in all Turkish states, within a period not exceeding 2028. The first 250,000 properties are expected to be completed in 2 years. Every citizen with a family income is less than 18,000 TL in Istanbul, and 16,000 TL in other states can apply to purchase from this project.
Istanbul's third airport
The third airport opened on October 29, 2018, is one of the largest projects with an investment value of approximately $35.6 billion. However, most parts will be completed in 2023, at a cost of approximately 23.4 billion euros. The airport is expected to provide about 225,000 job opportunities for many people in different fields.
Domestic electric cars
A country's cars are an indispensable part of its economic growth. They show technological progress and economic value. The Turkish electric car is planned to contribute to the GDP and reduce Turkey's dependence on oil. Electric cars are important in terms of strengthening Turkey's position. Turkey aims to fully produce locally made Turkish electric cars in 2023 with its geographical location, infrastructure, and human labor force, these factors enhance.
Huge Energy Projects
Nuclear Power Plant is one of Turkey’s mega-important projects in Vision 2023. These nuclear projects will make a significant contribution to employment by providing thousands of job opportunities in the construction and operation stages. The Turkish Stream project will transport natural gas from Russia to Turkey and Europe and will increase Turkey's influence in the energy field worldwide. Turkey has also made a great achievement in the field of energy by establishing an energy bridge between East and West with Azerbaijan, through the Energy Bridge.
Istanbul Canal Project
A 45 Kilometer Istanbul Canal is an important mega project that will pass through the regions of Avcilar, Kucukcekmece, Basaksehir, and Arnavutkoy. It will be opened between the Black Sea and the Marmara Sea to limit the density of ships and tankers crossing the Bosphorus and form a new attraction in the city. It is expected to provide a large profit return to the Turkish economy and aims to create an economy worth $100 billion.
The Turksat 6A project will enable Turkey to be amongst the 10 countries to produce communication satellites. The project is also expected to create a way for large-scale investments. It's the first satellite fully produced with national resources and is planned to be launched in 2023.
The potentials of Turkey
Turkish history is drawing the attention of the world because how else would 3 million people visit Turkish museums and archaeological sites? With 233,000 visitors, the ancient ruins in western Denizli’s Hierapolis Pamukkale became the most visited historical place. Tourists are preferring archaeological sites over museums. Mevlana Museum (Tomb of Rumi/ Shrine of Rumi) in central Konya province had 198,000 visitors in a year. Southern Antalya’s Phaselis Ruins, a commercial city of the ancient age attracted 128,000 visitors during the summer. Olympos ruins in Antalya had 124,500 visitors and Izmir’s Efes ruins were visited by 124,000 tourists.
Turkey showed its potential to attract tourists when it attracted more than 75 million foreign travelers and generate at least $65 billion through tourism only. The government is planning strategies for the tourism sector like the diversification of tourism activities, improved services, and tempting tourists by prolonging the tourism season. Renowned hotels are opening more branches in the country to make the most of the tourism in the country and the Turkish market. Cappadocia alone attracted more than 1 million tourists in 2022. Winter tourism popular for skiing is attracting tourists to ski and snowboard. Turkey aims to attract a whopping 50 million tourists billion by 2023 giving tough competition to Spain and Greece.
Today, Turkey is the world’s fastest-growing economy. The Turkish Government has set ambitious economic goals of becoming the 10th largest economy in the world and reaching $500 billion in exports by 2023. These efforts present a great opportunity for the United States to increase commercial ties with a strategic partner and growing economy. The Turkish market is mature for trade and investment, especially in renewable energy and transportation. Turkey’s primary energy usage increased by nearly 10% in 2010 and continued to expand, as the country maintained a young and growing population. To accommodate this growing demand, the Turkish government is expected to invest roughly $130 billion by 2023 to place a great deal of emphasis on renewable energy.
While the renewable energy sector in Turkey is commendable, the opportunities in wind and solar energy are outstanding. The Turkish wind energy market is the second largest in Central and Eastern Europe with a wind capacity of roughly 1,000 megawatts. Turkey is Europe’s sunniest country after Spain. Small-scale solar panels are often used for domestic water heating and the country has enormous solar production capacity.
Ankara is also expected to make a huge investment in transportation and infrastructure. The Ministry of Transportation plans to allocate $100 billion by 2023 to various transportation infrastructure projects like bridges, railways, and highways. These extensive infrastructure improvements will not only deliver new business prospects but also contribute to overall economic growth.
Turkey has always been a desirable destination for foreigners to all a second home. The country is offering endless opportunities for entrepreneurs, professionals, students, and retired individuals to come and invest in its real estate to get a second citizenship and/or future gains.
Interested in buying real estate in Turkey? Prime Property Turkey will guide you through your investment journey! Contact us for more information and support.
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