5 factors impacting real estate investment in Turkey
Buying and selling real estate is available worldwide due to people's constant need for housing and investment, but is every environment suitable for investment?
Almost everyone agrees that Turkey in its various regions, particularly Istanbul, constitutes an attractive environment and a suitable climate for real estate investment in Turkey, as many foreigners flock to buy real estate in Istanbul and have apartments for sale in Turkey generally.
The choice of Istanbul or Turkey to invest was not out of thin air. International investors are so clever that they differentiate between a fertile environment for buying real estate with investment goals and vice versa.
Several influencing factors play an important, effective and encouraging role in real estate investment in Turkey. A long-term investment guarantees profitable returns day after day.
In today's article, we will talk about the main families affecting real estate investment in Turkey and their role in attracting foreign investors and reassuring them to buy real estate in Istanbul and Turkey in general.
5 factors underpinning real estate investment in Turkey 2021
Are you looking for a safe investment to gain a rental income or a future resale profit? Turkey has a good real estate market to fulfill these demands.
The Investment Citizenship Program provides one of the most competitive opportunities in the world. Within three months, you can get a Turkish passport by spending $250,000. You can conveniently select from a wide variety of portfolios, from trendy flats to luxurious seaside villas.
When the whole world witnesses crises at various levels, real estate becomes the safest haven among the types of investments.
What are the 5 factors of real estate investment in Turkey?
1. Unique and Strategic location
Turkey's special and strategic position has created an accessible and cost-effective hub for major markets with convenient connectivity for 1.5 billion people and a combined economy worth USD 24 trillion of GDP in Europe, MENA and Central Asia within a 4-hour flight range.
This has drawn worldwide names such as Toyota, Ford, Nestle and Hugo Boss, both of which have selected Turkey as a production, export and management center.
Many firms claim that Turkey's geographic position at the crossroads of Europe and Central Asia and its skilled workforce is a winning formula.
Turkey is strategically positioned between Europe, where much of the world's political and economic strength is centered, and Asia, which has recently become a critical hub of economic development and growing political influence.
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2. The infrastructure and economic of Turkey
The Turkish economy has become among the 20 most powerful economies globally due to the continuous work during the last twenty years by the Turkish authorities to achieve strong numbers for Turkey in the international arena.
Turkey's developing economy provides attractive infrastructure investment prospects across a wide range of industries, including transport, healthcare and energy.
According to the World Bank, Turkey ranks 3rd in the global public-private partnership (PPP) ventures, with a gross contract size of USD 165 billion between 1990 and 2015.
Turkey has also witnessed a boom in exports, as diversified products reached more than 132 globally and a recovery in its tourism sector. In 2019 alone, more than 50 million tourists visited it as the fourth-best destination for tourism in the world.
The Turkish Economy
In general, the Turkish economy ranks seventh in Europe in terms of the largest economies in the old continent, in the great competition even for the largest and ancient economies, like France, Germany and Britain.
The Turkish economy is considered one of the economies resilient in the face of crises, similar to the Corona crisis. It showed great strength and stability compared to many major economies.
With a strong track record of over 220 PPP deployments across a diversified array of infrastructure investments, over the last decade, Turkey has been able to execute over 80 per cent of these initiatives.
Despite the Covid pandemic, the real estate market in Turkey continues to boom, with more than 41,000 new properties sold in Turkey during September 2020 - 5,269 of them were sold to foreigners.
About 8,000 new properties have been sold in Istanbul, the main city for investors who want to buy for rent in Turkey.
Iranian investors accounted for the largest number of real estate sales to foreigners in Turkey during September 2020, closely followed by the Iraqis and the Russians.
Other foreign investors came from the United Kingdom, Germany, the United States, China, and other countries.
Buying real estate in Turkey is a very fast and straightforward process, and it is available to citizens of 129 countries.
There is no capital gains tax in Turkey if you keep your property for 5 years, and foreign buyers are exempt from VAT when buying a home for the first time, when buying in foreign currency.
3. Renewable laws in Turkey
About ten years ago, it was impossible in Turkey, as a foreigner, to own property easily. The Turkish government paid attention to the matter and embarked on a legislative revolution favouring foreign investors.
Investment in Turkish real estate has increased significantly in recent years. The goverment reduces the property's value to obtain Turkish citizenship. You can obtain the Turkish citizenship by buying a property only with 250 thousand dollars
4. High profits for real estate investment in Turkey
The real estate market in Turkey continues to double the value every year. Investments made in Turkey's fast-growing real estate sector provide investors with a rather profitable return.
According to research, real estate is one of the most profitable investment instruments in Turkey. They recorded a percentage of 150 %. Real estate in Turkey is also attracting attention.
Turkey's real estate has high investment returns. The large number of residential and commercial real estate projects have the impact to this huge returns.
Istanbul apartments for sale are almost unique from the rest of the Turkish cities. Many real estate projects in Istanbul have huge and guaranteed profitable returns.
Istanbul contains strong infrastructure and a wide transportation network. There are many investment opportunities. In addition to the advantages of climate and customs and traditions.
5. Turkey is a tourist and entertainment country par excellence
Turkey is one of the most popular tourist countries for foreigners. Tourists continue to visit Turkey despite the Corona pandemic due to the safe tourism program.
This beautiful Country has a breathtaking nature, charming beaches and many recreational facilities. You can find malls, popular markets, monuments, parks, squares, shops, corridors, etc.
It also maintained its high-end services within its residential-style. The building residential complexes contain many service and facilities. The most popular features are swimming pools, football fields, security guards, spaces for children's entertainment, bathrooms, parks and others.
Residential complexes in Istanbul, for example, take into account all these characteristics.
For more information about real estate investment, please contact our consultants at Al Huda. We'll give you all the information you need in a free online consultation.