Predictions for Turkey's Future Property Market and Economy
Turkey has a well-established economy that kept on growing for over a decade even in the recent developments regarding the plummeting of Turkish lira since the beginning of 2018. The currency is fairly stabilized nowadays and during that storm, a new wave of foreign investors took advantage of their stronger currencies to invest in Turkey and also to enjoy much better interest rates. The country enjoyed a burst of foreign direct investment with more than 210 billion dollars between 2003 and 2019. Turkey is expected to balance out its currency crisis with new reforms and approaches that will surely create new opportunities for investors whether its property market or other various industries.
After two tough years of the currency crisis, Turkey is on its way to strengthen its economy in 2020 with many reforms, public savings, and foreign investments. In the upcoming future, Turkey will continue to grow and shrug the ill effects of the currency crisis. Turkey set an eager 5% growth target in 2020 in reliance upon its political stability, strong economic fundamentals, and responsive dynamics while the European Bank of Reconstruction and Development (EBRD) expects Turkey’s economy to grow 2.5%. Turkey can hit its 5% growth goal in 2020 if proposed economic reforms can restore confidence among investors and consumers.
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.
Foreign Investments on Property will Increase
Buying a property in Turkey is a sound investment on its own and it is possible to obtain Turkish citizenship by buying a property valued 250.000$ or more. Many foreigners from different parts of the world are buying property from Turkey also for the country’s lifestyle and the passport. Property buyers from Middle East countries such as Saudi Arabia, Kuwait, Bahrain, Iraq, and Iran have been steadily growing over the past couple of years, and this trend is expected to continue with the appeal of the Turkish Citizenship. Chinese investments in Turkey’s property market are also looking to rise and expected to be among the top 3 foreign nationalities in 2020.
Property Prices will Rise in Popular Areas
In popular property markets such as Istanbul, Ankara, İzmir, or foreign investor dominated Mediterranean towns property prices will likely increase. Currency crisis in Turkey has come to an end and everything is expected to balance out with an expected growth in the economy and low political interest rates will have a positive impact on property prices.
Less Populated Destinations will Shine
Turkey is a huge country with a lot to offer. The country has more than 20 cities that are above 1 million population and these cities are expected to grow with their amazing potential. Some investors are already started buying property from these cities for investment purposes such as Bursa, Çanakkale, Kayseri, Sakarya, or Tekirdağ. Property markets in these less popular destinations will keep on growing with time.