2019 marks a Rapid Growth in Real Estate investments by Middle Eastern businessmen
2018 was a successful year in the Real Estate sector in Turkey particularly after the new Law that was passed by the Turkish Government last September that allowed foreign investors to receive the Turkish Citizenship after purchasing properties at the value of 250.000 USD.
This year will mark another successful year in Foreign Real Estate Investment. Statistics show that the Arab community growth has reached up to 5 million people in Turkey especially in the industrial city of Istanbul. Istanbul’s multi-cultural environment and the variety of options that it offers in terms of areas and residential establishments, allow Arab investors to have several options when choosing a property for sale. This is a great advantage for Arab businessmen who can purchase flats or villas with a sea view, surrounded by green areas or in the city center according to their taste.
Turkey is one of the most stable countries in the area, economically and politically, in addition to that the similarity in values and traditions inspired foreigners from the Middle East, to purchase properties for sale in Turkey. Most Arab countries are suffering from governmental instability and low standard of living. Iranians are relocating to Istanbul to escape the immobile economy and rise in prices and cost of living in Iran. They are mainly investing in properties for sale in Istanbul because the cost of living is relatively cheaper than where they come from and the standard of living is quite high.
Middle Eastern investors see Istanbul as the new business hub after Dubai, because of its strategic location and closeness to Europe. Istanbul is now home to many international company’s headquarters. The quality of living is high and relatively cheaper compared to Dubai and the Turkish market is less saturated and has a lot of potential to grow. In addition to that there are many beautiful destinations and touristic areas all over Turkey that foreigners can travel to and enjoy all year long.
According to the forecasts of last year, Iraq is at the top of the list of countries who buy properties in Turkey. Iran, Saudi Arabia and Kuwait are also among the top countries who undergo property investment in Turkey along with Russia, at the third place, and the UK in the fifth place.
Turkey especially Istanbul, represents a safe place where Middle Eastern investors can purchase properties and possibly relocate in case of any political problems faced by their countries. In Istanbul, they are guaranteed to find all the means of transportation that they may need, great accommodation, hospitality and quality of living compared to the neighbor countries.
For this particular reason, the foreign investments in Turkey have been increasing tremendously. Every day new projects are being developed in several areas in Istanbul. Thus, Istanbul became one of the most sought after countries for foreign property sales. Arabs come to Turkey seeking to buy apartments and villas in safe residential areas where all their needs are fulfilled.
Istanbul hosted the Arab Investment Forum which was organized by Shahabuddin al-Azzazi, who claimed that the Economic openness of Turkey encouraged Arabs to invest in the Real Estate sector. The Forum’s aim was to create new partnerships between Arab and Turkish investors and to encourage the Turkish investors to explore the Arab market as well.
Arab businessmen are benefitting from the drop of the Turkish Lira, as opposed to the US dollar, realizing how ideal it is to live and invest in Turkey. The Lira’s drop marked an increase in Arab property investments remarkably. Arab investors who are seeking a better standard and cost of living are currently profiting from this decline.
Property investment in Turkey especially in Istanbul is also a lucrative business.
The fact that many investments are being held on a daily basis in Istanbul, promises a rewarding income in property rentals and the reselling of properties in the future. Istanbul holds many branch offices of international companies and several international universities therefore there is a high demand for property rentals. Many expats and students are moving to live in Istanbul which is why there is a high demand for rentals in Istanbul all year long. With that being said, 2019 will be yet again a prosperous year for Real Estate Investment in Turkey.