Falling Turkish Lira Creates the Perfect Time to Invest in the Real Estate Market
The housing market is one of the crucial points of a country's economy. So, the Turkish housing market is growing rapidly day by day and it is affecting the Turkish economy positively. There is an obvious increase in housing production in Turkey in recent years. With the urbanization process in Turkey, there occurred some problems but these days renovation in these areas is going on and new and modern places to live are building up. With the help of the housing loans also help the people to buy their dream houses and give a chance to buy their own houses.
Turkey Statistical Institute (TUIK) announced the data in the 4th quarter of 2015 (October-December) on "Building Revenue and Production Indices". According to the statistics, there is an obvious increase in housing production in Turkey. The information shows us that there is a 4.5 percent increase in the production compared to the last year’s data. Also, housing production in the past years showed a 1.1 percent increase compared to the previous year. This increase is the result of the investments and the rationale of the Turkish Republic. There are so many plans and regulations on the real estate market which are supported by the state.
There is an obvious increase in housing production in Turkey. Although there may be economic problems with the Turkish Lira, we have to admit the continuity of the Turkish economy and the real estate market. The growth process cannot be denied. The growth in the real estate market is the result of both native and foreign investor’s investments. The support of the state help the people have their possession and help them have their dream houses.
Turkey is getting stronger in the real estate sector as the economy grows stronger day by day. The construction sector is the locomotive of the Turkish economy. The more projects are supported, the bigger the contribution to the economy of the country. This will allow more KDV to be reflected in the prices of the discounted materials last year, which means that the real estate prices will be going down. No one should miss this opportunity. Along with the incentives, the figures in the residential sales will be going upwards.
Turkey is the youngest country of Europe with a median age of 30 and they are looking to own a property. Domestic demand will continue to rise in 2020 since these young people also want to live in good houses. There are many affordable housing projects in western parts of Istanbul such as Beylikdüzü, Esenyurt, Bahçeşehir, or Büyükçekmece and these neighborhoods are closer to the main transportation hubs. The values of properties in these areas are expected to get higher because there won’t be any shortage of demand soon.
The real estate market in Turkey is expected to grow more in 2020 even so there are fewer permits to construction in comparison to previous years because demand keeps on growing both to luxury and affordable properties.
Real estate investments are significantly influenced by the state economy and political stability. Turkey, as the connection point of two different continents, is the best candidate for real estate investment in the region.
What are the real estate investment options in Turkey?
- Buying your property in a project in development in a critical location will quickly sell after the completion at a higher price. Apartments for sale in Istanbul with sea views are the most demanded projects in Turkey.
- Land investments in Turkey's most vital locations that has plans of building residential complexes on them. You can easily sell them to double your buying price.
- Real Estate Development: Purchase and renovation of an old property. Then you can sell it at a higher price.
- Leasing a completed project can also assure you a fixed monthly return.
The vitality has not been lost in some sections of real estate business especially the increase of schools, dormitories, and some private education constructions that aroused the investment rate in the real estate sector. The real estate business still in its shining period, constructions are going at full speed. What makes investments go higher is the building projects, take place in the field of education.
New buildings are being constructed and old ones are being renovated or being modified for educational needs and purposes. While the construction is on the go, the buildings are being hired by Educational firms which also contributes to the real estate business. The firms that can show the contracts are granted for the financial support by banks or other leasing institutions.
Why and how should foreigners invest in the Turkish Real Estate Market?
Be it for a short vacation, or staying in your forever home, you will always feel welcomed by the Turkish community. You may not share a common tongue or clothing. You may have no idea how to purchase groceries or order food. Yet, once your neighbors take a notice on your troubles, your empty fridge will slowly fill up with pots and plates of local foods. Although “getting rid of strangers” culture is everywhere in the world, Turks are the ones who stop and listen and see if they can help you in any way. Since they have always been at the center of trading and migration routes, Turks have borrowed and influenced cultures, mimics, food, as well as lifestyles of everyone who visit them, and you will always feel welcomed in your community no matter where you came from.
Buying a property is a challenging process on its own let alone buying a property in a different country. It requires thorough research about the laws and regulations as well as the property values. If you have decided to buy a property in Turkey, or any other country for that matter, this guide will provide you with all the tips that you need to know before actually buying the property. If you successfully go through all these steps and consider each of them important, you should not run into any problems and the process should be done easily in a short time.
The type of property you want is closely related to your initial vision. If you are looking for a summer house, for example, the property type will change accordingly. However, this is not the only criteria when choosing a property type. How many members you have in your family, your job, and even your pets can change the property type you need. If you have a big family, you can either look for a villa or a big apartment with enough bedrooms. If you have dogs or small kids, you might want to get a house that has a garden for them to enjoy. If you are going to work in Turkey, you might want to choose an apartment or house that is close to work and the property type may be less important for you in that case. Therefore, make sure you choose the right type of property for your circumstances. You can choose more than one property type if you have different options in mind, however, do not forget that too many options can also be confusing at times. In case of having multiple property type options, know which one is suitable for which purpose.
The process of buying a property is not easy and it comes with all sorts of problems. A mistake made in any of these steps could lead to much bigger problems in the long run. Another problem may occur due to the property itself. It may sound good and you may not see any problems with the property itself, however, there could be things the owner is hiding from you that you will only realize after buying the property. Therefore, be careful with each step you take and always be suspicious of the offers that are too good to be true. It is better to stay on the safe side. Try not to go for a bad agency just because it is cheap, or do not go with a translator who is not a professional in the field due to the prices. Make sure to choose trustworthy agents and professional lawyers and translators who will make everything much easier for you. As Istanbul Investments, we have a portfolio of 20 years helping the foreigners on their process to buy real estate in Istanbul, as well as many other cities of Turkey.