The future of real estate investment in Turkey
Real estate sector is one of the largest and most important sectors that has a great impact on Turkey's economy. This is due to several factors, such as its strategic location, that it is located in the middle of the world and connects the two continents of Asia and Europe and the East with the West civilization. In addition to its history, its large area and being a tourist destination throughout the year. Turkish government has adopted enormous efforts to support and promote real estate sector, in order to attract investors and businessmen from all over the world.
The recent changes happened in Turkish lira have affecte the real estate in Turkey and led to some questions that concern Arab and foreign investors regarding to the future of real estate and investing in Turkey.
Turkey's economy is expected to witness the largest growth of 5% this year, with plans to increase domestic market independency and to reduce the imports, which create an optimistic vision about overcoming Turkey’s internal and external crisis last year.
Turkey's government has signed a huge number of trade agreements and international investment treaties in recent years, reducing the impact of political risks and threats on the state, which reflect a positive effects on most economic sectors, especially the real estate sector during the year.
Despite the high rates of inflation and deficit experienced by Turkish economy, there are still many reasons and factors that led to the continued growth of the real estate sector, including:
1- The state of chaos and confusion that the international policy are suffering from, and the increasing restrictions on Muslims in foreign countries, making Turkey the first destination for Arab investors.
2- The instability in Middle East and the decreasing of oil prices, prompting Gulf and Arab investors to expend their money in Turkey's property market, as it has a low risk, and due to the large facilities provided by Turkish government.
3- The rapid economic growth and the continuous increasing in income achieved by tourism sector, that Turkey is considered as the first destination for Arab and foreigners tourists.
4- The agreements and treaties worth billions of dollars conducted by the government, that support and contribute to achieve the vision of the state, which creates a state of reassurance to investors.
5- Turkey president Recep Tayyip Erdogan's standing on his opinion about the non-raising of interest rates, which increases the attractiveness of investors and strengthen the purchasing power.
6- The real estate sector is rarely affected by frequent economic crises. Real estate investment is generally characterized as a long-term investment.
Real estate sector is the fuel of Turkish economy, especially in the last decade. It came in the 17th rank among the world's largest economies. It is also the sixth largest economy in Europe with a domestic GDP of over $ 785 billion, the real estate sector representing 19.5% of it.
Turkey's economy is among the most promising economies, driven by its desire to generate solid economic development by establishing a significant projects such as the Third Airport in Istanbul, the world's largest airport, the Third Bridge (the Sultan Yawoz Selim Bridge), and Azmeet's Gulf Bridge that considered as the fourth big bridge in the world. There are also many similar projects that Turkey's government intends to establish in other cities and provinces in the coming years during the next phase, which increases the value of investments next to these projects and makes real estate investments very profitable. To read more: Learn about Istanbul's third largest airport worldwide and its impact on Turkey's economy and real estate investment sector
There is a relative relationship between the flow of tourists to Turkey and their ownership of real estate, where tourism is a gateway to look closely at the opportunities for trade and invest and to have a knowledge about the governmental regulations that are convenient for investment, in addition to touching life on the cultural, historical and natural side. To know more about tourism in Turkey: Find out about tourism revenues in Turkey during 2018
According to the Statistics Authority of Turkey, Istanbul is the most attractive city for Arab and foreign buyers, especially the prestigious areas that are overlooking the Bosporus, such as kandilli, bebek, yeniköy and kartal, where real estate prices could reach $100 million. There is also a high demand for private villas near to Sapanca Lake and Kartebe, as well as the beautiful city of Trabzon, which attracts tourists from Arab countries.
For more information on other areas of Istanbul, you can read this article: Best places of residence in Istanbul