Turkish property sales reached to record levels in 2015 with the support last 2 years of growth and propelling the market towards further expansion in 2016. In recent years there has been a growing trend for investment in Turkey’s real estate market which is primarily focused on Istanbul, with foreign buyers increasing by 56% in the first quarter of 2015 alone, compared with the same period in 2014. This situation also continued this year…
As being a very popular tourist destination, Turkey’s hospitality sector continues to flourish with visitor numbers swelling year-on-year, attracting investment from wealthy foreigners in several locations. As it is also common in other global property markets, growth is being driven by buyers at the high-end seeking luxurious villas and apartments in exclusive areas. Property sales figures increased in Turkey in 2015, reflecting investor preference for big ticket assets in the nation’s prime property market.
As a result of increased purchasing activity in Turkey, prices increased nationally by around 7% in 2015 and as restrictions on foreign buyers are eased before; further price inflation is also expected this year.
The demographic of investor has changed from those seeking second home or holiday home purchases in apartment blocks to a desire for luxurious designer homes with waterfront access in private and exclusive areas.
2015 also saw increasing investor appetite for buy-to-let properties in Istanbul’s up and coming suburbs, capitalising on the city’s growing domestic rental market. Construction of new apartments located within a commute of the city centre is expected to be stepped-up considerably to respond to heightened demand for good quality rental property.
In addition, goals are being set and development also continues in urban city renovation projects containing mega projects, including Marmaray, Kanal Istanbul, the third bridge on the Bosphorus and the third airport in Istanbul which is expected to be the world’s biggest airport (Bigger then Dubai Airport). The 3rd bridge will be ready in the 3rd quareter of 2016 and the first phase of new airport will be ready in the first quarter of 2018. The Turkish government has decided to renovate and renew buildings that are resistant to destruction during natural disasters such as earthquakes, which includes 6.5 million residences, with a budget of 400 billion USD. With its current potential, mega projects and ambitious targets set for 2023, Turkey offers great opportunities for investors in the real estate sector.