Real Estate Sector is at the Forefront of Investments in Türkiye Again at the beginning of 2024

The real estate sector in Turkey has witnessed major changes during the last ten years in particular, as projects for residential buildings, offices, shopping centers and hotels have increased significantly. 

It is expected that the real estate market will witness remarkable growth all over the world, led by rapidly developing markets such as the Turkish real estate market by 2024. As opportunities in the real estate field increase, real estate investment in Turkey will also increase.

According to one important real estate report, the value of investable real estate assets, which amounted to $29 trillion in 2012, is expected to reach $45.3 trillion by 2024, an increase of 55 percent, and this upward trend will continue until 2030.

It is also certain that intense competition in the world of real estate forces investors to search for new opportunities for profit. We also see that the real estate sector, which is located at the heart of rapid economic and social change, plays a major role in transforming current living spaces and creating a new lifestyle that suits the challenges of the times, and it is expected Urbanization, demographic change, and scarce resources will be decisive factors in the future of the real estate sector, which will make us witness a real estate environment that highlights major cities, not countries.

During this article, we will discuss the most important expectations related to the future of the real estate market and real estate investment in Turkey during the year 2024.

2024.. a year to restore balance in the real estate sector in Turkey

Sorhan Aras, a real estate expert in the Turkish market, stated that the year 2024 will be a year for rebalancing the real estate sector in Turkey. He pointed out that when the currently available real estate balance expires, prices will rise again. So now is the best time to buy real estate in Türkiye.

The new real estate regulation gives new confidence to the real estate investment sector in Turkey

The real estate field in Turkey was able to overcome a very thorny period that began at the end of 2016 until the last third of 2019. Among the influential and prominent factors in that period were the projects that contractors implemented without a good feasibility study, in addition to the economic crisis and the recent election periods that were held in Turkey. .

However, in June of last year, the Ministry of Environment and Cultural Transformation issued a regulation that included a classification of contractors and the formation of a database related to the real estate sector and real estate projects that were implemented during the recent period in Turkey.

The real estate sector in Türkiye begins the year 2024 with the strongest companies

The Ministry decided that it will not be allowed to work in the real estate sector in Turkey and enter any tenders related to the sector except for companies that meet the conditions in that list, especially in areas of cultural transformation. There has been an increase in supply and demand, and this in turn led to the entry of companies that do not have financial and scientific capacity. To the real estate market in those areas. But thanks to this regulation, companies that have the ability to do a good risk analysis, carry out the necessary planning, create strategies, and set their goals will be able to remain strong in the real estate market in Turkey during the year 2024.

Thanks to this regulation, the confidence index in the Turkish real estate market will rise again. The real estate sector in Türkiye begins in 2024 with the strongest companies.

 

The possibility that interest rates on mortgages will continue to decline

The decrease in real estate loan interest has contributed significantly to the recovery and strong return of the real estate sector in Turkey again, and we began to see its effects on the sector starting from the third quarter of 2019, so that sales of the last quarter of 2019 began to approach the sales rates of the same period of last year 2018. .

In addition to the support provided by the Turkish government to encourage local and foreign investors to enter the Turkish market during the year 2024, which contributes significantly to raising investor confidence and reassurance. However, by 12/31/2019, the government’s reductions related to the expenses of obtaining the title deed and value-added tax will end.

Government support and new facilities in real estate investment in Turkey

Real estate experts expect continued support from the government because the real estate sector in Turkey is one of the most important sectors that greatly affects the Turkish economy. The real estate sector alone includes about 250 side sectors that it supports. Therefore, the real estate sector in Turkey should not be subjected to any slowdown that negatively affects its growth.

New reductions on mortgage interest

There are predictions of new reductions in real estate loan interest and bank deposit interest. While government banks in Turkey, such as Iş Bankasi, Halk Bank, and Vakif Bank, previously made reductions in real estate loan interest rates by less than 1%, private banks in Turkey also began to reduce real estate loan interest rates to less than 1%. This, in turn, contributed to a boom and recovery in the Turkish real estate market.

In addition to the stability of the exchange rate of the dollar against the Turkish lira, it contributed to encouraging many foreign investors to pump their investments into the real estate sector in Turkey after the prevailing state of anticipation that had gripped them.

121 thousand property owners in Istanbul will pay the luxury property tax

The only factor that could have a negative impact on investors in the real estate sector in Turkey currently is the new value-added tax that will be applied to luxury properties at the beginning of the new year 2024. As is known, the Turkish government will collect the new value-added tax on properties that exceed Its value is about 5 million Turkish liras every year starting in 2024. This will negatively affect and pose a threat to the luxury housing sector in particular.

The tax will be as follows: Properties whose prices range from 5 million to 7.5 million Turkish liras will be subject to a tax of 3 per thousand annually. As for properties whose prices range from 7.5 to 10 million Turkish liras, a tax of 6 per thousand will be applied to them annually. Their prices exceed 10 million liras, and a tax of 10 per thousand is applied annually.

There are approximately 121,000 properties in Istanbul that meet the specifications described above, and this tax will be applied starting in February 2024. Luxury property owners will also be allowed to pay the tax in two equal payments in the months of February and August of each year.