Reality of Turkey Real Estate Prices
Turkey real estate prices have not stopped rising, especially in Istanbul, since the Turkish parliament issued in 2012 allowing citizens of 183 countries to own Turkey real estate without any conditions, opening the door to a real estate revolution. The last decade witnessed an unprecedented rise in Turkey real estate prices due to the increasing demand for purchasing properties in Turkey for several purposes, including housing, real estate investment, or obtaining Turkish citizenship.
Why Turkey for real estate investment?
As we mentioned above, the demand for buying Turkey real estate has increased recently. This is due to many reasons that distinguished Turkey from others in terms of real estate investment, which are:
- The facilities that the Turkish government presented to foreign investors in terms of buying real estate and protecting them from fraud.
- Buying a property of $400,000 in any Turkish city qualifies to obtaining Turkish citizenship without the need to master the Turkish language unlike many European countries where investors are restricted to specific regions and they have to master the language of the country.
- Buying a property of $200,000 in all Turkish cities qualifies investors to obtain a real estate residence permit.
After the decision to end the golden visa in Ireland, Portugal, and - Spain many people are afraid that Turkey may take this decision into consideration so they are fasting with time to take the opportunity to own a property in Turkey before it’s too late.
- The return on investment ROI in Turkey is short-term, investors can have high returns in a short time that does not exist in other countries.
- The strength and solidity of the Turkish real estate market compared to others because it depends on local citizens, who present 93% of the purchasing power, not on foreigners who present 7% only.
- The economic power that Turkey has appeared of recently as a part of Turkey’s Vision 2023 which aims to make Turkey one of the greatest countries in the world, in terms of economy, industry, energy, education, construction, and manufacturing.
- The New Istanbul Canal project that the Turkish government started to build which aims to make Istanbul the most important commercial port and waterway in the world.
- Turkey’s strategic location is in the center of the world and is surrounded by three seas, the Mediterranean, the Black sea, and the Aegean Sea.
What are the factors affecting real estate prices in Turkey?
The prices of Turkey real estate have been increasing for a decade. However, they vary from one place to the other. In general, prices of real estate in major cities like: Istanbul, Ankara, and Antalya are higher than real estate in minor cities like Batman, Kayseri, and Diyarbakır. However, they also vary from one place to the other in the same city due to many factors:
Location:
Generally speaking, the prices of properties in the city center are not the same as properties on the outskirts. Also, prices are higher in the cities than in the countryside.
Type of the property:
As we know an apartment is cheaper than a house, yet a house is cheaper than a villa.
Patterns of the property:
It’s known, worldwide, that the more rooms there are in the property, the more its price increases.
Closing to public utilities:
The closer a property is to public transportation, schools, universities, malls, hospitals and others, the more its price increases, and vice versa.
View:
Properties with views of sea, forests, or public parks are more expensive than properties with normal views.
Age of the building:
We all know that prices of newly constructed properties are not the same as old ones.
Types of properties in Turkey
Turkey is a very big country that contains people from all nationalities besides Turks. Therefore we can find so many types of properties that fit people's desires and reasons for which they want to buy real estate. Due to the differences in these factors, the types of properties in Turkey are as follows:
Apartments in complexes:
This type of apartment is usually more expensive than apartments outside complexes because they are combined with special amenities that cannot be found outside, like security, swimming pool, gym, sauna, maintenance and cleaning, playground for children, and many others.
Apartments in buildings:
This type is a little bit cheaper but it lacks any kind of amenities. It usually existed in independent buildings that consist of 4-10 floors.
Studio apartments:
They have very small areas, and consist of one bedroom connected to the living room, kitchen, and bathroom. They are suitable for young people or unmarried workers.
Duplex apartments:
They consist of two floors, connected by internal stairs. Their space varies between (2 + 1) to (6 + 1) and more. This type is the most preferred by large families. Moreover, its cost is low compared to villas.
Triplex apartments:
They consist of three floors, connected by internal stairs, similar to duplex apartments, and can be used for large families.
Villas:
Villas in Turkey are the choice of rich people. They are independent units, consisting of two or three floors or more. They are characterized by a private garden and a private swimming pool. They are also surrounded by walls from all directions and have a private entrance.
Shops and stores:
Taking into account that trade is one of the income pillars in Turkey, buying shops or stores, means huge and totally guaranteed returns.
Office units:
The demand for renting office units has increased, due to the appearance of several new companies in Turkey, after the high economic growth and investment volume Turkey has been witnessing in the last previous years.
Restaurants and cafes:
Turkey is an important tourist destination for many around the world. So, having a restaurant or a cafe in the city center, a vital place, or a tourist place would be a great investment opportunity.
Hotel apartment:
As we mentioned before, Turkey is a tourist country that thousands of tourists go to each year, so having a hotel apartment would guarantee a very high return especially in the summer vacation.
Will Turkish Real Estate Prices Decrease?
According to real estate experts, Turkey real estate prices will keep increasing, with a slight decline in prices in some areas. The remaining problem of supplying raw material, because of global economic inflation, will create an increase in costs, which will naturally lead to an increase in real estate prices in the next stage, especially for luxury real estate, due to the lack of supply within these categories. On the other hand, the Turkey Vision 2023 that the government is working on includes huge strategic projects that will make Turkey, in general, and Istanbul in particular, one of the leading economic destinations in the world, especially Istanbul containing the New Istanbul Canal project. This will make it the first international commercial port. So, it is expected that real estate properties, especially the ones around the new projects will double.
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