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Opportunities and Challenges of Investing in Real Estate in Türkiye

14/03/2024 Investment in Turkey 85 Opportunities and Challenges of Investing in Real Estate in Türkiye

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  • Whatever the investment, it always has opportunities and challenges in the short and long term, and real estate investment is one of the global investments. However, it is accompanied by high challenges, as it is the owner of the largest capital, so to speak, and therefore we must pay special attention to it and rely on numbers and analyzes that add to the distinctive results, namely the growing profits and investment returns. 
  • Investing in real estate in Turkey With every beginning or new era, challenges and opportunities begin again, and in 2024, as we see, new features begin to control the Turkish real estate market. Of course, we know very well that real estate does not die, but it gets sick sometimes. Damas Turk Real Estate, with its tremendous experience since... For 11 years now, it has been presenting a dedicated article about the opportunities and challenges related to investing in real estate in Turkey. Here are the main ideas of this article: 
  • Investment opportunities in real estate in Türkiye
  • Challenges of investing in real estate in Türkiye 

Investment opportunities in real estate in Türkiye

  • Opportunities, as we know, are represented by the conditions that provide the possibility of real estate to grow and develop continuously, or by achieving certain goals such as obtaining monthly or annual investment returns, or in the long term when resold. Opportunities are also called some real estate properties that are a “snapshot” if So to speak, it is necessary to know the real estate investment opportunities in Turkey in order to clarify whether they are suitable for you or not! The first of these opportunities is:  

The great strategic location of Turkey 

  • Turkey...the country that extends across the continents of Europe and Asia, has a unique geographical location that is considered the cornerstone of the global economy! This location not only opens doors to trade between East and West but also makes Turkey a strategic center for investment, economic and commercial activities.
  • Investment opportunities in Turkey are diverse and wide-ranging, partly due to this strategic location, which makes it easily accessible from Europe, Asia, and the Middle East as well. Therefore, we see a diversification in real estate investment from residential and commercial properties, villas, and hotels. Moreover, thanks to new developments in Infrastructure and major real estate projects emphasize Turkey's enormous ability to attract huge investments, and this contributes to advancing the economy and strengthening Turkey's position. 

Advanced infrastructure in Türkiye 

  • Turkey, and in particular the city of Istanbul, is witnessing remarkable urban and tourism development that enhances the value of real estate investment in the country. Huge infrastructure projects such as the new Istanbul Canal, which aims to improve navigation connectivity and reduce pressure on the Bosphorus Strait, in addition to the expansions of Istanbul Airport, which is considered the largest in the world. The world, except for the terrible bridges built by the Turkish government.  
  • This urban growth is not limited to improving infrastructure; It also includes the development of luxury residential and investment projects and tourist facilities that provide world-class services and facilities. The growing interest in tourism, driven by the presence of historical monuments and the natural beauty of Turkey, works to enhance the demand for real estate, whether for permanent residence or investment as well.

The Turkish economy is strong in the world  

  • The recent economic events in Turkey reflect their tangible impact on the real estate market, as the country witnessed economic changes, most notably the campaign to encourage reconstruction in Turkey, which has become the focus of talk in the Turkish street, in addition to the terrible development in granting large construction projects by the government and the private sector as well. There is no doubt that Turkey has a strong economy and its positive numbers are increasing globally in terms of global trade, defense industries, and many others.
  • Despite the challenges, the Turkish economy shows the ability to withstand and develop, as Turkey has been able, thanks to the strength of its economy, to rise to advanced ranks in the world, and is still among the twenty most powerful economies in the world, stressing the importance of the economy as a basis for the state’s strength. This stability and economic development contribute to creating opportunities. An attractive investment, especially in the real estate sector.  

Stimulus by the Turkish government

  • The Turkish government offers a group of wonderful incentives to investors, especially in the real estate sector, to attract foreign capital and encourage them to invest in Turkey. One of the most prominent of these incentives is the program for obtaining Turkish citizenship, which foreign investors can benefit from when purchasing real estate worth up to 400 thousand US dollars. . 
  • In addition, the incentives include obtaining real estate residency in exchange for purchasing a property worth 200 thousand US dollars, and also include tax exemptions, and facilitations in the procedures for registering real estate and obtaining the necessary licenses. In general, the Turkish government seeks, through these policies, to create an attractive investment environment that contributes to the development of The real estate sector and attracting more foreign investments. 

Challenges of investing in real estate in Türkiye 

  • Investing in real estate in Turkey also has opportunities and challenges, and these challenges are usually related to a period of time, and the greatest evidence of this is that everything we will mention later did not appear until after the Corona pandemic! Or after the earthquake that occurred in Turkey, and let us introduce you to the most prominent current challenges in the Turkish real estate market. 

Inflation occurring in the world and Turkey as well 

  • Inflation...a global scourge that affects economies in general, but it has a special impact on the real estate market in Turkey, where it has witnessed a huge rise in commodity prices, and the numbers have reached one hundred percent and more! Which led to a decline in the purchasing power of citizens and limiting it to daily needs only. This global inflation came as a result of the exacerbation due to the Corona pandemic and its significant impact on economies. However, the government seeks to control it and return it to single digits by the end of 2024.  

An increase in the exchange rate of hard currencies against the Turkish lira 

  • The rise in the exchange rate of the dollar against the Turkish lira is considered one of the basic factors affecting the real estate market in Turkey currently! Real estate, as usual, is affected by hard currencies, and its value often increases with the rise of these currencies. However, it is noted that real estate in Turkey, when calculated in dollars, remains relatively close in price, but when looking at the value in Turkish lira, we find large numbers that we have not seen before! But the relative improvement and slight stability of the Turkish lira against the dollar began.  

The disparity between supply and demand in the Turkish real estate market 

  • In the Turkish real estate market, the disparity between supply and demand is considered one of the most prominent factors that affect real estate prices. This basic economic principle is related to the balance of supply and demand, and the Turkish market is currently showing an increase in offers, and this means that the wheel is turning slowly until the balance between supply and demand is achieved, and this is what we started with. We will see it soon.  
  • At the end of the article, we always remind you that our professional team provides you with a summary of its experience in the Turkish real estate market for more than ten years. We have successful plans for investing in Turkey, and we also offer you the service of obtaining Turkish citizenship by purchasing real estate, through knowledgeable Turkish consultants and lawyers. Legal affairs in Turkey broadly. 

FAQs

  • What are the most prominent opportunities for real estate investment in Türkiye?
  • Investment opportunities in Turkey are characterized by their diversity thanks to the strategic location linking the continents of Europe and Asia, in addition to the advanced infrastructure and strong economy. Real estate in tourist areas and major cities such as Istanbul offers excellent opportunities for growth and investment returns. 
  • What are the most prominent challenges facing real estate investment in Türkiye?
  • Challenges include high inflation and the high exchange rate of the dollar against the Turkish lira, which affects the value of real estate. There is also a disparity between supply and demand, which causes challenges in determining real estate prices

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