7 Reasons Why Turkish Real Estate Investments Are Increasing

Turkey is making a comeback for property investors. Official figures from the Turkish Statistical Institute show that property sales to foreigners in July 2017 were up 65.3% year-on-year. Key drivers of demand for Turkish property include: 1. Rising House Prices Capital appreciation in Turkey has been one of the country’s main selling points in the years since the financial crisis, and prices have continued to rise throughout 2017. In the first quarter, Turkish property prices rose 3.4% compared to Q1 2016, according to Knight Frank. As a result, the country has become the fifth fastest-growing property market in the world. 2. Tourism Tourism is a significant driver of market recovery and investment appeal. After some time has passed, Turkey’s tourism sector is set to soar again, with the number of foreigners visiting the country increasing by 46.4% in July 2017, according to the Ministry of Culture and Tourism. Official figures show that the popular resort of Antalya is the second most popular destination for foreign buyers, followed by the Black Sea province of Trabzon. 3. Population Growth One of the pillars of the Turkish property market is its population, which continues to expand. Figures from TurkStat show that the country’s population has reached 79.8 million. Although this growth rate has slowed, the country’s population has increased significantly over the past decade. Where the population grows, housing is needed, ensuring that development and demand will remain strong for years to come. 4. Infrastructure The growing population means that development in Turkey is very active, with urban renewal and infrastructure plans aimed at supporting the growing number of residents and improving both travel and quality of life. Mega projects such as the Marmaray railway project, the 3rd Bosphorus Bridge, the Europa Tunnel are some of the mega projects that have been named in recent years. 5. Local Demand The government has introduced a number of measures to stimulate lending. As a result, lending increased 21.2 percent in March 2017 compared to the same period last year, matching the fastest growth in a year, BDDK said. VAT was also reduced to 1 percent for certain residential properties. Together, they have helped spur domestic property sales as well as overseas sales, which are creating momentum in the housing market. 6. Citizenship Building on Turkey’s appeal as an investment destination, this is the country’s recently introduced citizenship scheme. Turkey currently grants citizenship to non-residents who make a $1 million investment in the country’s real estate. With other countries such as Portugal, Greece and Cyprus seeing success with similar Golden Visa programs, Turkey’s citizenship system is likely to spur demand from wealthy buyers. 7. Lira vs. Dollar The lira is one of the fastest-growing currencies in the world, having fallen around 20 percent against the dollar in the past year. However, the currency’s weakness makes investing in the country’s real estate more accessible to overseas buyers.