Turkish real estate market review of 2017 and predictions of 2018
Introduction:
No one can doubt the Turkish economic power and its stabilized system against the chaos and challenges of the region. Turkish economy could flourish and develop while its neighbors are having wars and conflicts. Turkey acted smartly by converting the cons into pros. Turkey now is the main target of middle eastern and European countries for many reasons (Tourism, Investment, Study and many more). In this article we will mention some of the strategy that Turkey followed, to keep their real estate economy powerful. As we will give you the latest updates of Turkish real estate predictions.
House sales increased by (5.1%) in 2017 compared to 2016:
Turkey witnessed a significant increase in the sales of housing market in the year of 2017 by (5.1%) compared to 2016. A total of 1.409.314 houses were sold in 2017. Istanbul had the biggest share of 16.9% while Ankara was placed secondly with a 10.7% and Izmir was ranked thirdly 6% of the total sales.
The average price of per square meter to buy in outside city center of Istanbul has reached (1000$) while the average price to buy in the city center of Istanbul was (3000$).
The average of renting revenue in Istanbul was in the range between 4% and 8% according to the specifications of the apartment and its own location.
The role of Turkish government in succeeding the real estate market:
The Turkish government has eased the investing in its market and give even more by the following advantages:
- Granting the Turkish citizenship for investors in the real estate market after owning a value of one million dollars over three years.
- Temporary exemption of taxes for the houses which will be constructed in the beginning of January.
- The decision also includes amnesty for land taxes allocated for construction throughout the construction of the projects.
These factors led to a huge increase of foreigner investors, especially in the real estate market. The percentage of increase has reached 22.2% comparing with the year of 2016. While experts say the number will be increased in 2018 for many reasons. The powerful economy and the advantages that the Turkish government is granting for investors would be the main reasons. While the gulf investors will play a huge role of increasing the last year’s number.
World main cities comparison in the real estate market:
Istanbul proves day by day how powerful she is in the real estate market. Not only in turkey, but also in the world. So, if we compare the total revenue of real estate market that Istanbul has made over 21 years with other main global cities, we will have the following results:
- Paris need 26 years to achieve the same revenue.
- Dubai and Madrid will need 22 years.
- While Rome needs the double duration with 42 years of investing.
According to (REIDIN), new home prices in Turkey have risen by 76.4% from January 2010 to August 2017. The number is increasing rapidly and stably, because of the global strategical location of Istanbul. Where investors from all over the world meet and develop their businesses.
Compared to BRIC countries and Hungary, Poland and Croatia, a property can be registered in 6 days in Turkey, a much shorter length of time than the countries where the process takes much longer. It is also important to note that among these countries, Turkey shares highest score for “Overall Quality of Infrastructure” with Croatia at 5.1 out of 7.
More than half the population of Turkey is younger than 30 years old. The country sees 350,000 weddings a year. Of course, Istanbul has the biggest share of this number. This increases the demand of new houses all around the city. Thanks to a strong economy and relatively low unemployment, more of these young couples than ever can afford places of their own.
Experts predictions of the real estate market in the year of 2018:
Arabs consider Turkey as the best choice for investing and touring. The stabilized politics and the nice people who live there are encouraging them to make turkey their first choice to place their investments.
We are witnessing in these days, a big trend from foreign investors to invest in Turkey. Which will play the main role of increasing the demand of buying and investing in the Turkish real estate market. And of course, Istanbul will have the biggest share of investments.
You can also learn about real estate investment strategies that you can follow to increase your investment ROI by reading this article:
https://www.rightstepinvest.com/en/blog/real-estate-investment/5648
According to an expert of Turkish real estate market” (foreign investors are dominating the market, they have bought some full compounds) which will lead to increase the power of Turkish economy in the next few years.
For the local market, the purchasing power of the Turkish middle class is constantly increasing, because of the improvement of the Turkish economy. Also, the strong offers from the construction companies ease the purchasing process.
Some of the offers would be:
- A convenient installment free of interest and for a long period ranging from 12 months up to 90 months.
- No first installment which makes usually the most difficult step for the middle class in the process of buying houses.