The real estate market is one of the main factors that stimulate the growth of the Turkish economy. The development of the sector is promoted by state policy aimed at demolishing old and unsafe buildings, reducing mortgage rates. The real estate market in Turkey is influenced by foreign investments, which are attracted by high income and fast return on investment.
As the data for 10 years shows, the share of the real estate market in the state’s GDP is 8.4%, about half of which belong to foreign investments.
2018 for the country’s economy was unsuccessful. Domestic conflicts have increased, tensions have arisen in relations with the United States, which has led to an increase in trade duties. These and other factors were the reasons for the decline in the lira rate by 30%, and as a result, inflation was 25%. The prospects of the real estate segment for investors has significantly decreased, but there are also positive moments. Before the crisis, it was necessary to pay 8-9 thousand euros for a square meter, after the cost fell to 4 thousand euros. But many are in no hurry to acquire objects, waiting until the market reaches its minimum.
According to experts, Turkey needs foreign capital injections to stabilize the economy. But this is possible only after stopping the decline of the lira and returning the interest of investors from other countries.
The current situation in the segment allows you to make a positive forecast for the future.
Despite the crisis, in 2018 there was an active influx of capital into residential real estate. In total for the year, 39,663 objects were sold, for comparison, in 2017 the figure was about 22,000. Most of the housing was sold in the last quarter of the year. Such interest from foreign investors has two reasons:
•depreciation of the state lira, and as a result — the cheapening of objects in translation into currency;
•simplification of conditions for obtaining a residence permit.
If before the crisis for a residence permit it was necessary to invest in Turkey’s real estate market $ 1 million, by the 3rd quarter of 2018 this figure had decreased to $ 250 thousand. The bank deposit threshold was reduced from $ 3 million to $ 500 thousand.
Interest in investors for a long time in Istanbul. For the period of 2000-2017, the value of real estate increased by 3 times, in other cities of the country — by 2.5 times. Over the past year, foreigners bought 14,270 objects in the city. Contributes to this devaluation of the local currency. The price per square meter of housing in Istanbul is 1 100-4 600 euros. When renting the yield on the real estate market in Turkey is observed in the range of 4.87-5.78%.