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One of the most crucial questions on the minds of investors looking to start real estate investments in Turkey.
revolves around whether the Turkish real estate market will sustain its activity in the near and medium-term future
Additionally, there’s a focus on ways to preserve capital and enhance the investment value of properties.
Several indicators suggest clarity in the landscape over the next five years, indicating that the Turkish real estate market will continue to advance.
thrive, and experience increased demand, as it has in the past five years. These indicators include:
Results of the Turkish Parliamentary and Presidential Elections 2023:
- The results of the recent Turkish elections in late May have dispelled doubts for foreign investors in Turkey.
- Following extensive statements from various quarters about potential restrictions on foreign investors and limiting their ownership of Turkish properties.
- Recep Tayyip Erdoğan and the Justice and Development Party secured a new presidential term.
- This signifies the continuation of the explicit support declared multiple times by Turkish leaders.
- headed by President Erdoğan, to remove obstacles for foreign investors. It also involves providing them with incentives and legislation supportive of their investments in Turkey.
Stability in Turkey during 2023-2028:
- With the conclusion of the Turkish elections, Turkey has begun to witness a clearer period of stability starting from early 2024 for at least the next five years
- This stability will include ongoing support for foreign investors, backing Turkish real estate sectors, and supporting construction and contracting companies in Turkey.
Investment Office in the Presidency of the Republic of Turkey:
- Turkey’s Investment Office, under the Presidency of the Republic of Turkey, is actively supporting foreign investors by providing advice.
- consultations, privileges, and confidence to encourage them to continue their investments in Turkey.
- The recent launch of the Arabic language by the office aims for more comprehensive communication with Arab investors, fostering trust between them and Turkey.
No Indicators of a Real Estate Bubble in Turkey:
- Real estate experts in Turkey unanimously agree that there are no indicators of a real estate bubble occurring in the country.
- Typically, such indicators involve a gradual decrease in Turkish property prices due to reduced demand, increased supply, and rising inflation.
- However, these next five years are not expected to witness such conditions, ensuring stability in the Turkish real estate market.
Continuation of the Russo-Ukrainian War:
- Europeans, especially Russians and Ukrainians, continue to acquire more Turkish properties.
- consistently topping the list of nationalities purchasing properties on a monthly and yearly basis.
- The sustained demand and increases in property acquisitions are expected to contribute to the rise in Turkish property prices over the foreseeable future.
More Gulf Investors Coming to Turkey:
- With the restoration of Turkish-Gulf relations to their previous state, Saudi, Qatari, and Emirati investors, in particular.
- continue to flock to Turkey, acquiring more Turkish properties for residence or real estate investment.
Expectations of a Decline in the Inflation Index in Turkey:
- Economic experts in Turkey and internationally anticipate the gradual decline of the inflation index (Consumer Prices in Turkey) starting from early 2024.
- This is in response to economic and governmental decisions made by the country’s new financial administration.
Central Bank Raising Interest Rates:
- The Turkish Central Bank continues to raise interest rates for the fifth consecutive month, reaching 35%.
- This implies a relief for the real estate sector, fostering competition with the banking sector. It creates a balance in the market, stabilizing Turkish property prices.
Centennial Celebration of the Republic of Turkey 1923-2023:
- Turkey celebrated its 100th anniversary of the founding of the state at the end of October this year.
- This celebration involved inaugurating a series of government development projects that have been ongoing for several years and will continue in the coming years.
- These projects include Istanbul Airport.
- Başakşehir Medical City, other medical cities, highways, tunnels, and major infrastructure projects.
- Additionally, projects such as the Istanbul Canal and the Grand Istanbul Tunnel are under construction.
- As Turkey enters its second centenary, known as the “Century of Turkey,” government development projects continue within the Vision 2023 initiative.
- This further enhances the local economy and general investment in Turkey, particularly in real estate.
- raising the value of lands and properties adjacent to areas undergoing government projects and infrastructure development.
- After reviewing all these indicators, we can confidently say that the Turkish real estate market will maintain its prosperity and development over the next few years.
- at the very least.
