Is this the Right Time to Buy Real Estate in Turkey?

Businessmen and investors usually rush to buy stocks when their price drops because they believe that they are a gain in the future and a source of upcoming wealth, but smart investors are the ones who take advantage of falling prices to buy fixed assets, not financial assets. Investing in fixed assets is better, more necessary, and more beneficial, as it is considered one of the basic pillars of the investment portfolio because of its major role in securing the investor’s financial future. Based on the analyzes of many economic experts, real estate investment is considered the best among the different types of investment in fixed assets, as real estate may get sick, but it does not die. When we talk about real estate investment in Turkey, and buying Turkish real estate, specifically at this time, there are many advantages and incentives that tempt investors to buy Turkish real estate and draw a clear profit plan on the horizon for them. In this article, we will explain everything related to the advantages of buying Turkish real estate at the present time and the financial returns that will accrue to investors in the near future.

Is buying Turkish real estate a right decision at this time?

Before answering this question, we must talk about several important factors that play a major role in choosing Turkey as the best destination for real estate investment in the world, and for purchasing real estate specifically at this time.

A time of crisis is the best time to create wealth

When former US President Donald Trump was asked how he achieved his enormous wealth, he replied that he was taking advantage of times of crisis. Thus, crises are the best time to make money, because crises create unique opportunities that are not available in normal times. We all know that in light of economic challenges and financial downturns, the financial value of all types of assets decreases and there are opportunities to purchase investments at low prices. Here, businessmen and wealthy people rush to take advantage of low prices and buy assets as much as possible, especially if the market is carefully studied and known for its resilience, even during falling prices and setbacks.

We can say here that smart investors who have vision and courage are the ones who search for a market that is suffering from a temporary illness in order to seize opportunities in it as much as possible and become a wealthy person as soon as this market rises again.

Why is now the best time to buy real estate in Turkey?

Despite the strength of Turkey's economy and its high ranking among the first places in the world according to the gross domestic product and the strength of purchasing transactions; However, the Turkish currency has been witnessing a significant decline recently, for many reasons, the most important of which is global economic inflation, which has affected the Turkish real estate market very significantly. The US dollar is equivalent to 32 Turkish liras (according to today’s exchange rate). The continuous rise in interest rates has also made many Turkish citizens and investors reluctant to withdraw their money from banks. Which led to an increase in supply and a scarcity of demand, and thus a noticeable decrease in the price of real estate.

We mentioned previously that fixed assets are the best type of assets for investment for those who want to take advantage of the decline in asset prices at the present time. As for investment in the Turkish market, it is very clear to us that no matter how low Turkish real estate prices fall, they will jump again, because here lies the greatest opportunity to create wealth and money. We saw this more clearly when the demand for Turkish real estate increased in 2020 and 2021 due to the decline in their prices, to a huge rise in their prices in 2022 and 2023.

According to the analysis of economists, real estate prices in Turkey will rise again, especially with the stabilization of the interest rate and the prediction of its decline in the coming periods, according to statements by the Turkish Central Bank. This makes it ideal to buy low now and sell high within two or three years. When this happens, you will remember our famous phrase: “The best time to buy property was yesterday.”

Why will real estate prices in Turkey increase in the coming period?

There are several factors put forward by economic experts in Turkey that will affect Turkey's real estate prices in the near future to rise again. The most important of these factors are:

1. The strong economic policy undertaken by Turkish Finance Minister Mehmet Simsek, which won everyone's admiration and was praised by many European countries and governments. A simple example of this is that the credit rating agency Standard & Poor's raised Turkey's credit rating by one notch from (B) to (B+) after 11 years, and maintained its "positive" future outlook, as the agency explained that it expects investment portfolio flows to rise and the transaction account deficit to narrow the current account deficit over the next two years, along with lower inflation and dollarization in Turkey.
2. The Turkish economy is never easy. Like any other economy, it may relapse but rise again. Turkey is very rich in resources and energy sources, and it produces and exports the most important commodities in the world. Its strategic location also makes it the first choice for importers who prefer it over others due to its location and the high quality of Turkish products and materials.
3. Turkey is considered one of the best tourist destinations in the world and still maintains its position until now. It also breaks a record year after year in terms of the number of tourists.
4. Turkey's gold and foreign currency reserves have increased recently, and even Turkey's debts to the International Monetary Fund are very small which reflects the strength of the state's economy, no matter how ill it may be.
5. The interest rate was fixed for the first time this month, May 2024, and according to statements by the Ministry of Finance, the interest rate will begin to decline in the last quarter of 2024, which will lead to a decrease in inflation and investors not keeping their money in banks, in return. 

The importance of real estate investment in Turkey:

Real estate investment in Turkey is of great importance to the investor’s investment portfolio because of its unique advantages over others in other countries, including:

1. Turkey is a country with a great position in the world, whether economically, politically, or even geographically, so merchants, businessmen, and investors are keen to obtain a share of investment in it.
2. Large countries are pumping huge funds into Turkey through large strategic projects that will have a significant impact on the international economy, including: China, Qatar, the USA, the UK and Saudi Arabia. These projects work to raise real estate prices in Turkey quickly and continuously.
3. The close interconnection between investment fields in Turkey, such as industry, agriculture, real estate, trade and tourism, plays a major role in pushing investors to start their projects and investments.
4. You can obtain Turkish citizenship, only 3 months after purchasing a property worth $400,000, with your spouse and children under the age of 18 which allows you to travel to 126 countries, 68 of them without a visa, 51 countries with a visa on arrival, and 7 countries with an electronic visa.
5. Political and economic forecasts confirm that Turkey will be one of the greatest powers in the world, along with the United States of America, China and Russia. Expectations also indicate that Turkey will soon enter the European Union, which will lead to an increase in the strength of the Turkish passport and therefore an increase in Turkish real estate prices.
6. The curve for purchasing real estate in Turkey is always rising, because the real estate market in Turkey depends mainly on Turks and not on foreigners, as the percentage of Turks in the Turkish real estate market represents about 93%, compared to only 7% for foreigners, and thus, no matter what happens in the Turkish real estate market, it does not collapse. 
7. The speed of capital growth because the cycle of investment returns in real estate in Turkey is short-term, due to the rapid development of infrastructure projects and strategic projects.
8. The Turkish real estate market is an emerging and strong market, which makes it a constant focus of attention for those who wish to develop their investment portfolio, as Turkey ranks fourth among the top ten real estate investment locations in the world.
9. Turkey's geographical location also plays a major role in making it a destination for businessmen and entrepreneurs, as it is an intersection between the Middle East and Europe.

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