Reasons for the Rise in Real Estate Sales in Turkey 2022
The real estate market in Turkey witnessed an increasing turnout for the number of investors wishing to buy properties and invest in real estate, which reflected positively on the movements of real estate markets in Turkey in general and led to a rise and increase in sales of real estate in Turkey of all kinds, especially residential real estate, which today constitutes the cornerstone of market sales in Turkey.
In this article we will talk about the most important reasons that led to the increase in sales and the boom in the real estate market in Turkey in the past few years.
Sales in the first third of 2022:
The first third of 2022 witnessed an increase in the number of real estate purchases in Turkey compared to last year. According to the statistics published by those concerned with monitoring real estate markets in Turkey, it has been found that the number of purchases this year has increased to several times the past two years. We all know the main reason behind this, which is the economic crisis caused by the spread of the Corona virus and the negative impact on all sectors, countries including Turkey, which suffered due to this epidemic, where most of the investment operations of all kinds stopped and included real estate investment in it, which caused a state of stagnation and instability that affected the real estate markets, after the state of general stability witnessed by the world and the state of recovery from the spread of the disease and the global efforts made to eradicate the epidemic and provide Disease-specific vaccines, This was reflected in a state of positivity and recovery that gradually began to return to the real estate markets in Turkey, so the markets returned to stability, prosperity and recovery in buying and selling movements and in the recovery of sales to foreign investors whose numbers increased in the middle of last year and continued to increase until the first third of this year. This increase will continue due to the great renaissance witnessed by the real estate market and the recovery from the effects of the recent Corona pandemic.
Reasons for the rise in the number of real estate sales in Turkey:
What the real estate market in Turkey witnessed recently in the event of the increase in the number of sales of real estate in Turkey was the result of several reasons that would increase and affect the buying and selling movements in the real estate market in Turkey, and these reasons are:
1-The increasing demand for real estate by Turks
Today, Turkey is considered one of the most important and modern countries in the world, as it enjoys a high degree of responsibility that would support the population growth of Turkish citizens. The comfort of citizens, which was positively reflected on the population growth that Turkey has witnessed in recent years. Population growth has greatly affected the real estate markets. The population increase means that there are numbers of people who need the most important element for any person, which is having a house which prompted many Turks,not Especially the young people, to go to the real estate market to buy apartments and houses that would give them a quiet life and stability.
2-The increasing demand for real estate by foreigners:
Real estate investment in Turkey in recent years has witnessed a significant increase in the number of investors wishing to invest in real estate and achieve success and profits. There were several reasons that prompted more foreigners to buy real estate in Turkey, the most important of which are:
living standard:
Turkey is characterized as having an acceptable and appropriate standard of living compared to neighboring countries, as it is distinguished by ease of life and living and cheap prices, especially prices related to people's daily needs of food, clothing and other. The Turkish government also provides many free services that contribute to improving the living standards of citizens.
service level:
Turkey today is one of the largest countries that has a developed service infrastructure. It has the latest service technologies that will positively affect the lives of citizens. Today, it has a network of roads and bridges that connect Turkish cities to each other and is equipped with the latest and fastest means of transportation. It also has many public and private schools located in most Turkish cities, and many Turkish and international universities, and since we talk about the level of service, we do not forget that Turkey today is one of the first countries in terms of health insurance and medical supplies, as it has a huge arsenal of public and private hospitals and health centers located in most Turkish cities and countryside.
security level:
Today, Turkey is considered one of the most stable countries in the world, as it enjoys a good state of security and political stability. Today, it is considered a refuge for businessmen who suffer from turmoil in the security situation in their country, as they head to Turkey to buy residential real estate in order to have a quiet and secure life.
government facilities:
For more than ten years, the Turkish government has sought to support and encourage real estate investment movements in the country through a set of decisions and laws that would increase real estate sales in Turkey and encourage foreigners to buy real estate. The Turkish government has also authorized real estate investors in Turkey to get real estate residency by buying a property and these laws have continued to this day, but there have been a number of amendments to some of the previous laws, including the law that authorizes the granting of real estate residency by buying a property if its price is not less than 75,000 US dollars.
Turkish citizenship:
To encourage real estate investment in Turkey, the Turkish government sought to intensify efforts that would increase the number of investors and encourage them to come to Turkey to invest, so it carried out a set of procedures that facilitate the process of granting Turkish citizenship to foreigners by purchasing a property, the investor can get Turkish citizenship under specific conditions; the property must have a value of at least 400,000 US dollars. When buying a property in Turkey with this value, the investor will be able to get Turkish citizenship after at most three months of submitting the required papers.
Granting a Turkish passport to a foreigner:
One of the measures that the Turkish government has sought to attract more investors is the possibility for the foreign investor to get the Turkish passport through which he can enter most international countries with or without a visa, according to the procedures of the host country. This feature prompted many investors, especially Arab nationalities to buy real estate in Turkey and get Turkish citizenship by buying a property so that they can submit papers to have a Turkish passport.
Successful experiences in the Turkish market:
Real estate investment in Turkey has recently received more demand from foreign investors, Arabs and other nationalities from different countries of the world. The successes and previous experiences of investors have proven the success of the real estate investment process in Turkey. It is an open field for everyone in accordance with the facilities made by the Turkish government in order to support and encourage the chances of success in real estate investment, which will have positive results on the Turkish economy and thus will increase the confidence of investors wishing to come to the real estate market in Turkey.
3-The state of flourish in Turkish markets:
What the Turkish market is witnessing today in terms of activity and prosperity that affects buying and selling operations, has caused a rise in the local price of real estate and customers wishing to purchase in the real estate market, and therefore the real estate market in Turkey has become a great opportunity for success and profit for the foreign investor who can buy a property in Turkey at an acceptable price compared to neighboring countries and then sell it at an appropriate and high price due to the local rise in the Turkish market, and thus he has achieved the desired thing from the purchase and investment process and has obtained appropriate profitable financial returns.
4-Fluctuations in real estate prices:
What distinguishes real estate prices in Turkey are the changing price fluctuations in the markets, which have increased in the recent period, and thus will become fluctuations in the movement of buying and selling, which means increased demand and lack of supply. For investment, this is one of the points of increased demand in a certain period, which leads to a rise in the market movement and thus is a reason for the increase in sales in Turkey, and one of the reasons for the rise in the real estate market index in Turkey is a change in the exchange rate of the Turkish lira against foreign currencies, especially the US dollar to The side of the rise in the consumer price index (inflation case). Therefore, it is not possible to definitively and correctly predict the movement of the real estate market in Turkey, but it tends mostly to rise, and therefore it can be considered one of the ideal markets for real estate investment in the world.
4-The options that meet most desires:
What distinguishes the real estate market in Turkey is the diversity of investmentable real estate options that meet the needs of different investors. According to the investor's desire and strategy, he chooses a target in the market. He can choose the following:
-Residential apartments:
Its goal is to find a home and a place to live in the Turkish lands, and here it should be noted that the investor must choose the city, location, view and service structure of his apartment very carefully.
-Office apartments:
The objective of it is commercial, as the investor wants to buy this type and rent it and thus get a financial profit that is considered a fixed income. What distinguishes this type is the long-term lease and the reason is that the tenant takes from the apartment a place to work, so he cares that the lease period is long because his clients are accustomed to it.
-Studio apartments:
The purpose of it is also commercial, where the investor searches for apartments with small spaces which location is close to government centers and universities in order to sell or rent them, either to students or workers who go to city centers, and this type is widespread in Turkey, especially Istanbul.
-Residential complex apartments:
The investor can go to the residential complexes and search for an apartment that meets his aspirations, and this is widespread in the real estate market in Turkey as a result of the spread of many residential complexes in the suburbs of Turkish cities, especially the residential complexes in Istanbul and Ankara.
-Shops:
This investment is also considered commercial, as the real estate investor buys the commercial shop and rents it.
-villas:
This is the suitable option for businessmen who go to major Turkish cities to reside and search for a life of luxury. They buy villas that are near their workplaces or villas that are far from the hustle and bustle of the city as a refuge for them to relax, calm and enjoy nature.
-Smart homes:
Investors wishing to buy homes equipped with the latest international technologies and designed with urban designs that reflect the tremendous development that the world is witnessing today, as it has recently been published in the real estate market in Turkey, especially the real estate market in Istanbul, is this type of real estate that has become the demand of many investors.
-Profits that grow over time:
In general, the real estate investor in Turkey who buys a property guarantees the stability of the capital in the worst case, and therefore the profit from this investment has the greatest opportunity according to the duration of his purchase of the property. If the purchase period is long, it guarantees huge and assured profits.
-Tourist and natural areas in Turkey:
Turkey, which is God’s paradise on earth, enjoys a distinct strategic geographical location. It is considered a link between Europe and the Middle East. Its location allows it to benefit greatly from the trade routes, not to mention the beautiful and picturesque nature of Turkey, as it is one of the most beautiful countries in the universe, due to its richness in green spaces, water lakes and many more. Modern and historical tourist attractions such as castles, bridges, palaces and many others, make it a prosperous country that people come from everywhere to live in or for the purpose of tourism and to enjoy a life of luxury and prosperity, which contributed greatly to revitalizing the general movement of real estate sales. After the stage of recovery from the state of stagnation experienced by the world, especially the movements of the real estate markets, the tourist delegations returned to Turkey, which reflected positively on the real estate markets and caused a rise in real estate sales, especially real estate in the Istanbul real estate market.
-The development that Turkey is witnessing in various fields:
Turkish cities and states have witnessed a development and modernization movement that included all fields. The urban development and modern designs witnessed by most Turkish cities, especially the urban designs in Istanbul real estate, made it very similar to the developed European countries. The real estate scattered in most Turkish regions also has a huge and advanced infrastructure and service. There are many government public utilities in addition to the electricity and water networks that are spread in most Turkish cities, not to mention the modern and advanced transportation networks that connect all Turkish cities together.
These were the most important reasons that prompted local and foreign investors to buy real estate, which led to an increase in the number and rise of real estate sales in Turkey of all kinds, whether residential or commercial, but it was not limited to these reasons, there are several advantages of real estate investment in Turkey in general, where we will be able to talk about these features that would enhance the incentives for both domestic and foreign investors.
Advantages of real estate investment in Turkey:
The real estate investor in Turkey can have many advantages that bring him many benefits that will increase the chances of success for the investor and achieve what he hopes for his investment.
1-Ease of real estate investing:
It is one of the government's measures and efforts to support large facilities in the field of real estate investment, as it makes the process of real estate investment for the foreign or Turkish investor easy and possible, and this is shown through the facilities that are obtained in government departments in order to extract the necessary papers for the buying and selling process. This contributes to supporting the investment movement in Turkish real estate and attracts investors from all over the world, which positively affects the real estate market in Turkey and leads to the prosperity of the market and makes it strong and full of surprises compared to other European countries.
2- Finding real estate at affordable prices:
Those wishing to buy a property in Turkey can find a property at reasonable prices for their budget. Cheap real estate can be easily found in many Turkish regions. The person who wants to buy a cheap property chooses one of the properties with normal specifications and buys or invests it. As for the investor who wants to buy a property at a more expensive price, he chooses higher specifications for the property he would like to buy.
3-Finding luxury real estate:
Investors with capital, celebrities or businessmen can find what suits their tastes and aspirations in the real estate market in Turkey, including luxury villas, homes equipped with the latest technology, luxury apartments and many other properties that indicate the general state of luxury and wealth for the property owner.
4-Diversity in real estate investment in Turkey
The most prominent feature of real estate investment in Turkey is providing opportunities for investors to buy real estate of all kinds. When the investor buys a property in Turkey, he can either sell the property and get an immediate profit or rent it and get a monthly or annual financial return, the investment can be divided into several forms:
1-Residential real estate for investment:
-Investment by buying ready-made apartments for the investor to sell or rent
-Buying apartments under construction to develop them and complete the construction to sell or rent them in the future
-Investing by buying modern villas to be his own residence
-Investing by buying a house in residential communities, then either renting it or selling it, and it is one of the most sought-after properties
-Investing by buying smart homes, despite their high prices, they are constantly increasing in demand
-Investing by buying old real estate for the investor to restore and sell.
2- Commercial real estate investment:
-Investment by buying commercial offices with the aim of renting or selling
-Investment by buying shops
-Investment by buying studio apartments for rent.
3-Tourist real estate for investment:
-Investing by buying tourist villas and renting them to tourists
-Investing by buying tourist apartments and renting them to tourists
-Investing by buying chalets and hotels and renting them to tourists
Here we have talked about the most important advantages of real estate investment in Turkey and the most important reasons that will increase real estate sales, which have a major role in attracting more investors to the real estate market in Turkey.
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Real estate investment guide in Istanbul
Conditions for obtaining Turkish citizenship
Types of Turkish passport and its features
Benefits of buying a property in Turkey
How to obtain real estate residence in Turkey?
