In recent years, Turkey has increased in popularity as one of the sought-after countries for real estate investments. The very mix of cultural diversity, strategic positioning, the expanding economy, and the ever-flourishing tourism sector makes it a great potential for investment both within and outside the country. However, the question begs to be answered whether it is indeed worth it to invest in property there. This blog provides insight into the different aspects that make Turkey a potential market for real estate investments and the factors that every prospective investor needs to know.
1. Booming Real Estate Market
Turkey’s real estate sector has experienced a remarkable expansion during the past ten years. Real estate investments are in addition to the major cities of Istanbul, Antalya, and Izmir, the coastal areas that are urbanizing and developing their infrastructures. There are many tourists who come into the country every year so the growing middle class, augmenting highfliers, and even real estate investors are some of the driving forces for real estate.
Also, the Turkish authorities have put in place numerous measures in order to attract foreign investment. For example, foreign individuals who buy certain property can get Turkish nationality which is a good option for those seeking to establish themselves in the country.
2. About Europe and Asia
Turkey is located in the middle of the two continents which is very advantageous to tourism and international business. For instance, many visit Istanbul, a city that is cosmopolitan and has people coming from all over the globe.
In addition to the obvious benefits of increased tourism, such factors also contribute to the attractiveness of Turkey as a business and employment destination, which in turn increases the need for housing.
To this end, this creates possibilities for investing in both residential and commercial sectors of real estate. No matter if you seek to buy an exclusive apartment in Istanbul or a vacation house on the Turkish coast, the country’s position offers a clear advantage regarding access to the relevant markets.
3. Positive Impact of Tourism on Economies
Turkey’s economy, with tourism being one of the fastest growing and most important sectors. More than 51 million tourists visit Turkey in 2023, and this figure is expected to increase with time. Short-term rentals in areas rich in tourist attractions such as Istanbul, Cappadocia, and the Mediterranean coast are always in high demand.
This is an ideal opportunity for real estate investors to purchase vacation homes or rental properties which are sure to provide passive income. Investing in Short-term rentals, particularly in areas with a history of high tourism levels tends to be rather lucrative, especially in high seasons. Thanks to advances in technology, companies such as Airbnb and Booking.com have made it extremely simple to run such properties which has made the process of letting such homes very efficient.
4. Reasonable Real Estate Costs
While Western European real estate markets are much higher, in Turkey, real estate is still relatively cheap. For instance, the property prices in Istanbul are in most cases lower than that of other major cities in Europe; London, Paris, or Berlin included. This low cost together with the possible high rental yields and capital appreciation has proven to be a good option for investors wishing to have value for their resources in Turkish real estate.
Properties in seaside areas like Antalya and Bodrum also present perfect conditions for investment and most especially luxury villas and apartments which are offered at ridiculously lower prices unlike in the Mediterranean countries such as Spain or Italy.
5. Favorable Currency Translation
Coupled with this is the allure of doing business in the Turkish real estate market for foreign investors, the aspect of the favorable exchange rate. The Turkish lira has lost value over the last few years which makes owning property cheaper in Turkey for foreign buyers. It enables individuals from nations with stronger currencies, to purchase properties at very cheap costs, and even earn rental and appreciation returns.
6. Odds of Making Returns from Rentals
Out of the numerous benefits of Turkish real estate investment, high rental yields rank as one of the top benefits. In key cities such as Istanbul, the income earned from rentals is considered very high, especially in the core regions. Depending on the real estate type, foreign investors stand to benefit from both letting the property out on a prolonged period as well as at short intervals.
In the case of areas like Antalya and the Aegean, where tourists abound, there are high chances that short-term letting out of the houses as holiday homes, especially during the peak season, will bring in considerably high returns. Conversely, long-term leasing in the cities, especially for expats or those coming to work in the country, for example, nurses and engineers, also generates good revenue and remains constant.
Conclusion
In ending, Turkey is an exciting and attractive investment market in real estate. Its real estate market is dynamic owing to its geographical positioning, expansion of the economy, an established tourism industry, and low property costs.
