The Turkish residential real estate market has become one of the most popular hot spots for overseas investors this year. The main buyers are Iranians, Ukrainians, Germans and Iraqis. The tourist city of Antalya is the most sought-after region to focus on Turkish properties. This place has surpassed even Istanbul. Let’s walk the talk and have a closer look at the state and prospects of this market in 2024, the criteria for choosing the most investment-attractive project, and what is going on with the prices of real estate in Turkey.
Does Turkey remain attractive to investors?
Recently, there have been rumors that the real estate market in Turkey is overheated. However, the growing demand for Turkish properties shows that people are interested in investing in this market. Turkey remains a country loyal to foreigners. Many government programs help foreigners to do business in the country. There is an expert opinion that the growth in demand from foreign buyers has led to escalating prices. The interest of overseas investors has affected the prices of Turkish real estate. But the market has risen in price not only because of the geopolitical situation and the influx of foreigners. The situation is influenced by economic indicators in the country, for example, the fall of the Turkish lira and the rising inflation rate. As a result, prices for gasoline, electricity, food, and building materials have risen in Turkey.
Property prices could not remain the same in this situation. So the price increase is due to several factors. Despite this, international investors are showing great interest in the Turkish market. Many foreign nationals came here to wait out the hard times, the demand for rental properties has grown very much, migration services have been overworked, and there has been a collapse in the most popular areas of Turkey, but the situation is improving gradually.
How has the ROI in the Turkish real estate market changed?
Excessive demand or any problems in processing migration documents did not affect profitability dramatically. Moreover, new stimulating factors are likely to appear in the local market. Turkey is preparing a bill according to which it will be possible to get a residence permit and citizenship only on the right of real estate ownership. This means that you can get a residence permit by staying in rented housing. If this project is adopted, there will be an additional reason for purchasing a property on the market, and investors who have made an enormous amount of impressive investment decisions will increase the liquidity of their assets.
However, there is information that the Turkish authorities are going to increase the minimum cost of real estate to receive Turkish citizenship from $400,000 to $600,000 in 2024. Since October 16, the Turkish authorities have increased the minimum cost of real estate for those wishing to obtain a residence permit in the country to own it to $200,000 instead of the previous $50,000 in small towns and $75,000 in megacities. Stay tuned for further information.
Which regions of Turkey and property types are better for overseas investors?
Nowadays, the largest number of investors prefer to choose Alanya. In the second quarter of 2022, this region received about 50% of requests. The remaining 50% is divided by the key cities of the country:
- Istanbul,
- Mersin,
- Antalya.
Many real estate projects of various levels are being built in Turkey, and an investor needs to choose the right investment-attractive project in the best community. From the point of view of profitability, the most promising and profitable for investors are residential communities with an advanced hotel infrastructure and upscale amenities, including:
- a spa center,
- a fitness complex,
- Parking,
- entertainment venues,
- a children’s playground and much more.
However, a competent and far-sighted investor does not focus on one indicator, for example, the price of real estate, but should also take a closer look at other parameters:
- where this complex is located,
- who is the designer of this community,
- who will live in it, etc.
What are the near-term prospects for the local real estate market?
Turkish real estate, especially in resort areas, will become more expensive over the next 2-3 years. The demand for luxury resort communities will remain high, and the rate of price growth will increase in 2024, as there are fewer and fewer land plots for development in in-demand places on the first coastline, the cost of which is growing exponentially. Today, a lot of investors have been interested in buying various Turkish properties thanks to the following factors:
- affordable prices,
- a friendly policy of the authorities,
- wide opportunities for business relocation, and entrepreneurship for foreigners.
Investing in Turkish real estate projects in 2024 is a good tool for both saving and increasing capital with minimal risks and predictable profits.
The demand for long-term rentals is expected to grow in 2024 due to the high selling prices of apartments and the high cost of mortgages. Tourism is showing a sharply positive trend, which will affect the demand for short-term rentals in the tourist regions, for example, in Istanbul.
How can a potential investor get to know the local market?
Turk.Estate, a well-established real estate aggregator with a high reputation, is good at the investment real estate market and can offer customers a great deal of information on each housing unit in the best parts of Turkey. Experts will be happy to share helpful information and experience on how to pick up the right property and give useful advice, for example, on how to purchase the most lucrative Turkish property. They understand what the sales dynamics and pricing policy will be, know the quality of the developer, see the location and concept of the project, and therefore they will be able to simulate what the property price will be if it is an off-plan project or a finished one. As a result, the return on investment only due to the rise in price of this housing unit can be from 30% per annum. Make it snappy – turn to Turk.Estate.