العربية
The real estate prices in Turkey recorded an unprecedented increase in 2024 compared to previous years, with property prices rising by a range of 100% to 300% in the last five years.
This significant growth in property investment value in Turkey can be attributed to various reasons, as outlined below:
The return to normal life in mid-2021:
- Turkey and the world witnessed a period of lockdowns and a near halt in production and travel between early 2020 and July 2021 due to the COVID-19 pandemic.
- After recovery and a decrease in the severity of the pandemic, airports reopened, leading to a general revival of economic activity.
- This also included the Turkish and global real estate markets, where sales figures began to rise.
Increased interest in property ownership in Turkey:
- In recent years, there has been a growing interest in purchasing Turkish real estate following the reopening of airports and the resumption of air travel.
- Requests for obtaining property in Turkey for residential purposes, real estate investment, or acquiring Turkish citizenship have increased.
- The law of supply and demand comes into play here, as a reduced construction pace during the pandemic and high demand for Turkish properties are likely to significantly raise prices.
Construction of properties by major construction companies in Turkey:
- Prominent Turkish construction companies with a global presence continue to develop real estate projects in various parts of the world.
- particularly in the Americas, Europe, and Africa. In Turkey, they are constructing massive real estate projects with creative designs and high-quality.
- construction that align with international building standards. These projects are also equipped with comprehensive social.
- security, entertainment, technological, and smart home services, which are equally important.
The impact of the Turkish economy on the real estate sector:
- The Turkish economy has cast its shadow on the real estate market in Turkey positively.
- The depreciation of the Turkish lira and the rise in inflation led to increased interest in owning Turkish real estate.
- resulting in higher prices due to the minimum wage increase, increased labor costs, and rising costs of imported construction materials.
- all of which contributed to a significant increase in Turkish property prices.
Continued government support for foreign investors:
- The ongoing government support and the provision of investment incentives have attracted thousands of investors to Turkey in recent years.
- They are open to government facilitations, discounts, tax exemptions, and even the opportunity to obtain Turkish citizenship through real estate ownership and investment in Turkey.
The Russian-Ukrainian war:
- The Russian-Ukrainian war has led to an increase in European migration towards Turkey and a rise in real estate sales to Russian and Ukrainian citizens in particular.
- as they flee from wars and instability in their countries, finding in Turkey all the incentives for living and settling there, including owning Turkish properties.
The revival of Turkish-Gulf relations:
- After several years of strained relations, Turkish-Gulf relations, in general, and Turkish-Emirati and Turkish-Saudi relations, in particular, have returned to strength diplomatically.
- politically, and economically. This has led to increased Gulf citizens’ activities in owning Turkish real estate for investment purposes.
- Gulf citizens prefer Turkey over Europe for buying apartments with the aim of residence or investment, given the similarity between Turkish and Gulf customs, especially in terms of religious and family values.
- The first half of this year saw concerns among foreign investors due to the potential change in Turkey’s governance system and the opposition’s promise.
- upon coming to power, to restrict foreign ownership of Turkish properties and hinder their investments.
- However, the victory of Turkish President Recep Tayyip Erdoğan and the Justice and Development Party in a new presidential term until 2028 has restored confidence.
- among foreign investors, leading them to continue their investments in Turkey and initiate new ones.
- Development projects within Turkey’s Vision 2023 continue after Erdoğan and his ruling party won a new term until 2023.
These projects include the Istanbul Canal project, the Grand Istanbul Tunnel project, the completion of the remaining phases of Istanbul International Airport.
and the Istanbul International Financial Center, all part of Turkey’s Vision 2023 and the centenary celebration of the Turkish Republic’s founding.
marking the beginning of what is known as the “Turkish Century.” It is known that government-led vital projects increase the investment value of properties and lands in their vicinity.
particularly projects in Istanbul, which also contribute to the rising real estate prices in Turkey.
Real estate experts believe that property prices will continue to rise for at least the next five years, thanks to ongoing government.
support for investors and the continued construction of government development projects. Additionally.
the new financial vision of the Turkish government, aimed at supporting production and investment in all economic sectors, especially the real estate sector, further contributes to this trend
