Is It a Good Time to Buy Real Estate in Turkey?
In light of recent events happening in the world, more and more people are striving to save their money. Traditionally, the best way to save money is not to buy a car or jewelry, but to invest in real estate. Whether you are purchasing residential or commercial units, this is one of the most reliable and profitable ways to save and to increase your capital.
What is happening in the real estate market in Turkey?
Turkey has become the most suitable investment destination due to its geographic location, huge housing market, active business areas and well-established infrastructure. With the commissioning of the latest international mega-projects, Turkey began to attract even more investors who acquire real estate to increase their capital. Both from within the country and from abroad.
According to statistics, in 2021 Turkey was the most popular destination for foreigners buying real estate. 25% of all the real estate sold were acquired by foreigners.
As we mentioned in the previous articles, real estate sales in the country are breaking records: Construction capacity is at its’ peak, which has led to an increase in supply on the market, and competition between developers in the domestic market contributes to the quality of construction as modern engineering technologies and foreign materials are used. The Turkish government also supports the developers by financing; providing incentives and favorable conditions for activities.
To sum up the results of the previous year, it is worth noting the first of all the record numbers of transactions on non-residential objects: about 1.5 million, more than double the land sales which resulted in 700 thousand transactions. According to the latest sales statistics for the 2015-2020 period, Iraqis were the top nation showing interest to real estate for sale in Turkey. In the last 6 years, Iraqis bought 33.544 units, followed by Iranians with 18.464 units, Saudi Arabian citizens with 13.540 units and Russians with 12.859 units. Within the same period, Kuwaitis bought 10.898, Afghanis 9.143 Germans 7.209 and the British bought 6,391 units. Antalya, Istanbul, Mersin, Izmir, and Bursa still remain the most popular provinces when all the purchases are considered.
It is also worth noting that sales of real estate in Istanbul to foreigners do not exceed 10%, and on the Mediterranean coast they reach 25%. The growth in demand for real estate among foreign investors is only increasing. Many of them are buying not one, but several properties at once. These people mainly buy real estate in Turkey for investment: The profit from such investments are earned in foreign currency, and the ownership of property almost always guarantees a passive income. The Turkish market is characterized by liquidity and high rental potential which is approximately 4-10% per year. This is also a good option for protecting your finances from inflation as the value of the property is increasing and not decreasing.
Why to invest in real estate in Turkey?
One of the main arguments for investing in foreign assets is to bring a stable income. A stable and passive income is the dream of many! To find the right option that will bring the maximum profit with minimal investment, you need to contact a professional real estate agency. When making a decision to buy a home, first of all, you must take into account your needs and criteria such as the purpose of the purchase, location, budget, and characteristics of the object. The questions such as: Are you considering buying a holiday home, for your own year-round living, or for investment purposes? need to be answered first.
According to the statistics, the demand for Turkish real estate has grown by 60% compared to the previous period. As you know, an increase in demand is always followed by an increase in prices. For two years in a row, the value of real estate in the country has been growing: In 2020, the reason was the state program to support housing loans and the increased activity of local investors which created a hype among foreign buyers. This situation mainly arose due to the value fluctuations in the Turkish Lira. Another reason was the rise in the cost of building materials most of which are produced abroad. The depreciation of the Turkish Lira also affected the cost of new project facilities. Prices have increased both in Turkish Liras, Dollars, and Euros. The exchange rate was unbalanced in the disadvantage of the Turkish Lira and as a result, the attractive offers were sold out almost instantly.
It is also worth noting the declining number of free land plots. This issue is especially acute in resort areas. Construction companies are forced to choose between offering properties closer to the sea with high prices or offer real estate in Turkey in more remote areas with more budget-friendly prices.
What awaits the buyers and investors and is it worth investing now?
If we are talking about numbers, then you need to remember that the numbers say a lot. What numbers express is not just about the growth of the price tag: The value of real estate in Turkey is growing day by day, not in a linear fashion but in a geometric progression. Therefore, the return on investment must also be considered. Even those cities in which the pace of life is not fast like in the resorts will light the highest economic indicators within a few years.
When is the best time to buy a house in Turkey?
Currently, it is especially important not to hesitate to buy: for instance, Real estate in Antalya is one of the most profitable investment assets available at any given time. If you are thinking about purchasing a house for investment purposes, the most advantageous offers are still available and waiting for you!
If we compare Turkey with other resort countries, we can note such note several advantages of the country such as visa-free entry and a guaranteed opportunity to obtain a residence permit/citizenship in the shortest possible time. All these advantages are improved with a growing economy and a favorable climate too.
The government programs make an additional contribution to the state of the country's economy, and foreign statistical and investment organizations predict its rise in the near future. According to the latest reports from major international banks, Turkey is in the best position to attract foreign cash flow, which is breaking records every year. The Turkish government's latest investor incentive plan comes with many advantages. Foreigners who wish to invest in the economy can take advantage of such benefits such as exemption from the customs duties, VAT, can have low-interest rates on the loans and the income tax.
Even in the current conditions, buying an apartment in Turkey is much easier and cheaper than, for example, in Spain. Moreover, the advantages and privileges of owning a property in Turkey can be compared with owning a home in one of the European countries. For example, you can find cheap real estate in Alanya and potentially double or triple your investments in the coming years.
The most important perks of owning a real estate in Turkey are obtaining a residence permit in Turkey for all of your family members guaranteeing a high-quality living.
Buying property in Turkey is one of the easiest ways of getting a residence permit or Turkish citizenship for you and your family members. The foreign citizens can obtain Turkish citizenship when buying real estate in Turkey valued at 400,000 USD or more.