العربية
Analyzing the feasibility of real estate investment in Turkey requires considering the long-term outlook, opportunities, challenges, and obstacles.
that the upcoming years might bring, as well as their direct impact on real estate investment returns, whether they are on the rise or decline.
This also includes examining expectations for property prices in Turkey.
1-What Makes Turkey a Future Investment Destination?
- Over the past five years, Turkey has become one of the most active and attractive real estate markets worldwide, especially over the last three year
- . This has elevated its status as an investment destination,particularly in the real estate sector.
- drawing various foreign nationalities seeking property ownership, investment, or Turkish citizenship through property ownership.
2-What Are the Real Estate Investment Opportunities in Turkey for the Next Two Years?
Various types of Turkish properties attract foreign investors, offering them multiple opportunities to enter the Turkish investment market.
Notable opportunities for success in 2024 and 2025 include:
- Owning properties under construction and waiting to sell after com
- Owning ready properties and making minor modifications such as décor and furnishings before resale.
- Owning residential or commercial properties and leasing them to generate investment income.
- Owning property based on the engineering plan at the lowest possible price and waiting for the construction period to achieve a significant price difference. The average construction period in Turkey ranges from 3 to 5 years.
3-Future Challenges for the Turkish Real Estate Market:
While the real estate market offers numerous incentives, advantages, and opportunities, it also faces several challenges, with the primary ones being:
- The impact of rising inflation rates (consumer prices) on the declining demand for Turkish property ownership and the purchasing power of the Turkish people. However, there are clear signs and expectations that inflation rates will start to decline in early 2024.
- The Central Bank of Turkey raising interest rates may lead investors to shift their focus from real estate investment to banking investments.
- Investor concerns about political changes in Turkey that could affect the economy and the Turkish market. After Erdogan and his party won a new term, Turkey is expected to enjoy a period of stability on all levels for at least five years.
- It’s challenging to predict property prices in Turkey for extended periods due to its susceptibility to fluctuations and changes
- Any positive news can increase prices, while negative news can decrease them. According to real estate experts.
- recent changes in the direction of the Turkish government and recent interest rate hikes have had a clear impact on lowering property prices in Turkey.
- However, these decisions cannot alter the choices of investors who see increased interest rates as a greater profit opportunity in the Turkish real estate trade.
- Urgent demand for housing and commercial properties will continue to drive the ownership of more.
- Turkish properties, and these opposing factors are expected to create a form of balance in Turkish property prices in the coming period.
- stabilizing them at natural levels before they rise again as the market cycle completes.
- This will allow for seizing property opportunities at reasonable prices in the current and foreseeable future.
Is There a Likelihood of a Downturn in the Turkish Real Estate Market?
- An economic downturn doesn’t occur suddenly; it’s usually preceded by indicators and signs. So far.
- there are no indications of an expected downturn in the Turkish real estate market on the foreseeable or medium-term horizon.
- This is especially true since the Turkish government’s plans for urban development and reconstruction.
- including the construction of new cities near vital and development projects, are ongoing.
Will Property Prices in Turkey Decrease?
- Many economists and real estate experts refer to the current period as a “truce” regarding property prices due to their impact on various factors.
- such as the Central Bank of Turkey’s interest rate hikes and the government’s efforts to build more affordable housing projects with long-term payment options.
- These government measures have significantly affected the sharp increase in property prices in recent years.
- Because of this governmental balance between raising interest rates on the one hand and further developing the Turkish real estate market on the other.
- most expectations lean towards stable Turkish property prices in the near term rather than a rise or fall with a contrary indicator.
Steps to Ensure a Successful Real Estate Investment in the Future:
To lead the market instead of waiting for potential developments, there are several steps to ensure a successful real estate investment in Turkey, regardless of external factors:
- Choosing the Ideal Location:* The location is paramount. A prime location near healthcare, educational institutions.
- entertainment venues, main roads, and transportation networks will undoubtedly contribute to the success of a real estate investment in Turkey.
- Selecting the Perfect Property:* Choose your property wisely. The property itself should meet desired specifications.
- and be popular in terms of its location within the building and the type of building (independent or a complex).
- Recent trends show a preference for residential complexes. These complexes offer modern designs.
- earthquake resistance, spacious properties, efficient room layouts, scenic views, and the provision of security, recreational, and social services.
- all of which play a significant role in maintaining and increasing the property’s investment value.
- Seizing the Right Opportunities:* It’s well-known that the best time to buy property in Turkey is between November and April of each year.
- Real estate experts consider this period ideal for acquiring a suitable property at a reasonable price.
