Many dream of owning a property in Istanbul, due to the country's growth, progress, and openness to investors and businessmen from all over the world, and this necessarily reflected the high demand for the real estate market.
In the past years, the real estate sector in Turkey has witnessed a remarkable prosperity and was able to attract the attention of foreign investors, and the motivation of locals has also increased, due to the stable political situation and the state's supportive policies for this sector. This is what opened the door for Turkey to enter the global competitive market, to become one of the most important tourist and investment destinations. Let's find that it ranked the second largest country in terms of real estate activity in the world after New Zealand.
Despite the general situation the country is experiencing today, real estate market experts and economic analysts expect a promising future for this field and more prosperity for the market.
In this article, we will address all questions to understand the basics of the development of this market, and we will analyze all the data that informs us of the prosperity of the real estate market in Turkey.
Content table:
1- How has the real estate market developed in Turkey in recent years and what are the factors?
2- The influx of foreigners into the Turkish real estate sector.
3- The political and economic conditions of the country
4- Turkey recovers itself by itself
5- What are the predictions of the Turkish real estate market for the year 2023?
6- A glimpse of the best regions and cities in Türkiye for investment today
How has the real estate market developed in Türkiye in recent years and what are the factors?
* In the recent period, the real estate market in Turkey has undergone drastic changes. This is due to a variety of social and economic factors that affected the country. With a booming economy, housing growth, and a weak Turkish lira, foreign investors have been drawn to the country. This has led to skyrocketing real estate prices and unprecedented levels of foreign investment. Meanwhile, the Turkish economy has grown rapidly with a GDP of about 7.2%, which is much higher than the world average.
* This growth was largely driven by the real estate market which was also very active. This was related to rising incomes, a strong construction sector, and the liberalization of the Turkish industry which was another major factor in the growth of the real estate market. This prompted increased competition, resulting in excellent build quality and highly competitive prices, and increased foreign investment and value for money. Turkey's population growth rate has also been rising to around 1.2%.
Besides, this population growth plus to the fact that the urbanization has increased the demand for residential and commercial real estate in major cities. This has been the driving factor behind the huge rise in real estate prices in recent years. In addition to the weakness of the Turkish lira in particular in the past few years, which made it an attractive target for foreign investors. This influx of money has also helped increase real estate prices in the country.
To understand all this, we have to understand how Turkey became able to attract foreign investors?
And why is it the best opportunity for any foreign investor who wants to invest in the real estate sector?
Foreigners flocked to the Turkish real estate sector.
*Turkey is now almost considered one of the most popular tourist destinations for tourists, especially those dealing with the purpose of investment. The country includes all types of tourism, from adaptive facilities for medical tourism to natural and artistic tourism and cultural and civilizational enrichment.
* Starting with its entry into the European market in 2005, Turkey has marketed itself as a specialized tourist destination, and with the introduction of the European region and the significant tourism growth it has obtained, it is now showing that it is occupying a major position in the tourism market.
* The Turkish real estate market is also recently considered the market that is called "the relationship of attraction by foreigners". The strategic location at the crossroads of Europe and Asia makes it an important center for trade and tourism as well as investment, which provides an important source of sale and rent for foreign investors.
* In addition to the social developments and the openness of the eastern culture to the European, which made This country an important transit point and a successful investment land. Also, if we compare the prices of the Turkish real estate market with the European market, we will find that the cost of living and Turkish prices are relatively low, and this is what attracts foreign investors to Turkey, not another country.
the political and economic conditions of the country
* After more than a decade of economic reforms that could include tax cuts, diversification of foreign trade and investment activities since the current year, the taxes resulting from the revenues provided by real estate in Turkey have been calculated about thirty percent in the system of traditional methods.
* Since the Turkish government announced in 2020 the adoption of a new economic policy based on three main principles, which are price stability, financial stability and macroeconomic stability, all state institutions have embarked on this approach with the aim of making Turkey a center for attracting local and international investors with low risks and high confidence, and satisfactory profits. The government has succeeded in obtaining financial and economic assistance from local and international to help it overcome the past economic crises. The situation has improved after Turkey became registered in the European Union agreement, which participated in reducing the unemployment rate and effectively increasing investments in the country.
* The government had an important role in raising the volume of industrial production by providing good infrastructure and building many projects to attract foreign investors such as the airport, railways and ports, focusing on private projects, supporting multinational companies and giving them the necessary privileges to invest in Turkey and This is what made Turkey an important location in global supply and supply operations.
* The economic reforms also included the creation of new equations in the Turkish market through the establishment of a free market that encourages free competition and attracts small and large investors. Turkey's current economic situation is a clear indication of its success in that and its future directions in this field.
* Also, Turkey today is experiencing an important political event, which is the presidential elections, after the important step that the country made towards a democratic state that derives its legitimacy from the votes of citizens and a state that respects the law and abides by the constitution, as it achieved political, military, security and economic stability for more than three decades, it will definitely keep it. Which means that the party that wins the elections will continue on the same political and economic approach, as this country has always proven its confrontation with all crises and the intensity of its cohesion in front of the most difficult stations.
Turkey recovers itself by itself:
* In recent years, Turkey has experienced successive crises, and in each crisis, it has proven that it is a country that heals itself, and has become an example for many countries to follow in the speed of response to an emergency. And the most important example of this is the Corona pandemic, and during the deficit or rather the collapse of health and economic sector of the most developed countries in this field, it can be said that Turkey is one of the few countries that succeeded in dealing with the crisis from the beginning and taking the necessary measures, while some countries submitted a request Emergency aid Turkey had announced that it did not need help, but in return sent medical aid to more than 20 countries around the world.
* During that critical period in which the country experienced economic stagnation for a while, especially in the field of real estate investment, Turkey succeeded in rectifying the situation and maintaining economic stability, implementing the “Economic Stability Shield” plan, and launched campaigns of loans and facilities as support and stimulus for local investors as well as for foreigners Those who hold Turkish citizenship, and this in turn prompted the rapid recovery of the real estate market in the country, so that the Turkish economy recorded a growth rate estimated at 6.4% in the third quarter of 2020.
* The state also took the measure not to collect taxes from companies affected by the coronavirus, in addition to supporting the tourism sector at a value of ten billion pounds. In this context, the real estate market was able to overcome this crisis, and many companies resorted to providing online platforms, and all buying and selling procedures became online without the need to travel. So, the critical period passed, and the Turkish market returned to its peak of prosperity.
*Turkey is also facing a new crisis today and many challenges related to the repercussions of the recent earthquake. As usual, this state maintains its determination to save itself by itself and to contain the crisis internally with the least possible damage. Two months after the occurrence of this natural disaster, Turkey was able to reconfigure the reserves of the Central Bank and started to compensate for the financial and real estate losses towards launching the construction of new projects and strengthening the infrastructure to resist natural disasters.
In these circumstances, what are the predictions of the Turkish real estate market for the year 2023?
Based on the clear data, economic analysts expect a promising future for the Turkish real estate market in the current year 2023. If we compare the past years and despite the crises it went through, the real estate field in Turkey has achieved record high numbers. The sales records are increasing, as Turkish real estate sales recorded in 2022, one million and 485 thousand and 622 real estate sold and 16 thousand and 312 real estate for foreigners, i.e., the percentage rose to 15.2 compared to the year 2021.
Also, the increasing demand for this field necessarily imposes supply at high prices day after day, in addition to the low inflation rates in the country, the stability of economic conditions, and more state policies that support and stimulate foreign investment, all of this confirms that the real estate market today means guaranteeing the capital with a successful investment opportunity more than ever.
In the end, it can be said that the Turkish real estate market today is at its peak, and this time period is the most important period for real estate investment.
But the question remains, what are the best regions and cities in Turkey for investment today?
The arrangement of the most popular areas for investment will be as follows:
1* Istanbul
2 * The capital, Ankara
3* the city of Antalya
4 * Trabzon city
5* Sakarya City
6 * Kocaeli city
7 * Bursa city
*If we take the city of Istanbul as an example for analysis:
This city is associated with a high investment value and it is the most important city on which the country's economy is based in different sectors in general and the real estate sector in particular.
According to official reports for the year 2021, the rate of increase in real estate prices in Istanbul has reached 95%.
In these two tables, we will show the average property price difference between the last two years in Istanbul:
1* Buying a property in Istanbul:
| expted increrease over the next year |
average annual increase |
The average purchase price of a 3+1 apartment in 2022 |
The average purchase price of a 3+1 apartment in 2021 |
Regoin |
|---|---|---|---|---|
| 45 thousand dollars | 45 thousand dollars | 200 thousand dollars | 180 thousand dollars | Başakşehir |
| 50 thousand dollars | 50 thousand dollars | 250 thousand dollars | 200 thousand dollars | Beylikdüzü |
| 37,5 thousand dollars | 37,5 thousand dollars | 150 thousand dollars | 100 thousand dollars | Esenyurt |
2* Renting a property in Istanbul:
| expted increrease over the next year | average annual increase | The average purchase price of a 3+1 apartment in 2022 | The average purchase price of a 3+1 apartment in 2021 | Regoin |
|---|---|---|---|---|
| 1000 TL | 850 TL | 4700 TL | 3500 TL | Başakşehir |
| 1100 TL | 1075 TL | 4650 TL | 3600 TL | Beylikdüzü |
| 1000 TL | 950 TL | 3000 TL | 2200 TL | Esenyurt |
