Turkey’s real estate market
One of the best markets for the foreign investors is the real estate market in Turkey. The process of buying of property in Turkey is easy, which affected a big number of foreign investors will be attracted to enter the market of buying a property in turkey.
Back in 1980s, policies in Turkey only stimulated people to build housings through government loans, but couldn’t help rise the number of properties in Turkey. In General, Turkey’s policy did not progress the real estate market back then, and the investment in the country noticeably dropped.
The government in turkey offered loans for constructing projects in order to rise the quantity of properties to buy and invest in. Social security funds and Turkish bank offered these loans.
The Turkish government was directed by those policies to have a better success in construction, but still did not rise the number of investment in properties in the country. The government in turkey arranged loans to investors to make properties under the government’s conditions.
With the progress of urbanization, real estate demand raised and the government could not organize and manage the supply on the demand. These policies made some growth in the Turkey, but now the government is applying these policies that can raise the demand for buying houses, but the demand for cheap properties is greater in the country.
Along with properties shortages, the country’s rising population has directed to a rise in the number of unemployment in Turkey. As the population increased, the Turkish government assumed that the country needed a lot of housing. In the year 2000, Turkey led many investors to invest in the properties market.
Turkish statistics showed that more than 400,000 new units were needed. Istanbul is one of the best metropolitan cities in the Middle East.
The policies adopted by the government to curb inflation have led to a reduction in the interest rate on loans, and conditions for building residential units have improved, and those who are middle and low income can use these facilities.
The progress and growth of tourism in the country was one of the main factors that directed to the development and of the real estate market in Turkey, but the economic crisis affected the government which made the private sector invest to build those properties.
After the year 2000, real estate sector has been recovering and this market is now one of the most significant economic areas in Turkey .
After the economic drop in the country until this day, Turkey has been able to sustain this achievement, and as a result of to private sector investment in the real estate market, along with the rise in the percentage of investors and owners of properties in the country, the unemployment rate has decreased as well in Turkey.
Starting 2017, investors got more than 22,000 properties in Turkey. Istanbul has been rated the first city in the investment of properties, followed by Antalya and Trabzon in second and third places. Istanbul as an expanding and growing city, particularly on the European side has numerous new developments and projects. Many options and areas are ready to accommodate both budget and luxury buyers in the properties market.
Another push arrived in September 2018 when the Turkish government reduced real estate investment amount for Turkish citizenship from 1 million USD to just 250,000 USD. According to statistics, during the following four months, more than 250 buyers and investors applied for the citizenship and have met the requirements. Experts in the field have predicted a greater number of applications during 2019.
Antalya including its city center and many resorts will remain dominating the second place with all the investors from all over the world especially from Europe, Britain and Middle Eastern buyers and investors in the city. Covering a large area on the Mediterranean coast, many districts attract budget buyers and also investors interested in luxury properties.
In 2019, a growth is expected to happen in the city of Izmir as an alternative to Istanbul. Including the beautiful coastal resorts such as Alacati and Cesme, more enquiries and high demand in the city, not only among foreigner investors coming from different countries but also a lot of Turks retiring who want to move from Istanbul to a less stressful city and more relaxing environment.