Which Factors are Boosting Property Prices in Turkey?
Is it Worth Investing Now?
In Turkey, real estate prices are the most alluring topic for Europeans, Asians, and Americans. In the past five years, many foreigners have purchased land or property in Turkey. Those who invested in Turkey earlier are now enjoying the fruits of their investment.
Due to the high demand and supply of properties in Turkey, prices are increasing. However, still, it is worth it to invest in Turkey for long-term investment and a secure future with a luxurious lifestyle. In this blog, we will discuss the factors boosting property prices.
Increase in Local Purchase Demand:
Turkish real estate prices have continuously accelerated due to several factors, most notably the fall in the Turkish currency and the consumer price index (inflation).
For the last two years, due to the Pandemic situation, the foreigner purchase rate of property in Turkey remained lower, while the local Turkish invested more in property in Turkey. Last year around 2.3 Million Local Turkish purchased houses while the demand increased to 4 Million homes per year. Because of many factors but most notably due to a high population growth rate and inadequate capital markets, housing investment in Turkey was widely favored by local investors. It was also fueled due to a favorable mortgage scheme for local Turkish. After October 2021, foreigners started reinvesting; however, the property sale in Turkey became double in December 2021.
Inflation in Turkey: Turkey’s high inflation rate has significantly impacted the country’s real estate market. Average house price growth in the country hit a new high last year. Istanbul set a one-year record for price increases among Turkish cities, with prices rising by 28.8% annually, followed by Izmir at 33.9% and Ankara at 30.3%.
Marriage and Divorce Rate of Turkey:
Around 2 Million couples got married last year. The crude marriage rate, or marriages per thousand people, averaged 8.84. On the other hand, about 1 Million couples got divorced.
In recent months, especially in the fourth quarter of 2021 and at the beginning of the new year in 2022, Turkish real estate prices have continuously accelerated due to house demand by Turkish people after marriages and divorces. This rate has influenced the increase in property prices.
Foreigners and Students ratio: Turkey had a sudden demand for rental and investment after the pandemic. Many foreigners started coming to Turkey again, which increased the property demand. It also fueled the local market to increase the rental income of houses, offices, shops, and apartments. Foreigners in Turkey demanded around 1.1 Million homes in a half quarter.
New Turkish Government Rule for Investors: Turkish Government is introducing a new rule for builders and property dealers. It will be mandatory for builders to sell out the project with 70% local Turkish investors and 30% foreigners. This rule has fueled the property demand by local investors, which is also augmenting the overall property prices.
Conclusion:
It is still not too late to enjoy the same investment benefits in Turkey. The Turkish real estate market is one of the most popular today.
These times are the best times to buy property in Turkey. Most locals and foreigners are investing in real estate for profit. Generally speaking, you can easily make money by investing in property in Turkey and selling it after getting citizenship or required profit.
