What encourages real estate investment in Turkey?
- Political stability and sustainable economy
- The Republic of Turkey is one of the founding countries of the G20 and the Organization for Economic Cooperation and Development (OECD).
- Residence permit
- Foreigners who buy flats in Turkey are given a residence permit for 1-2 years. It also applies to all family members (husband/wife and children under 18).
- Turkish citizenship
- The Republic of Turkey offers Turkish citizenship to foreign nationals for property purchases over $400,000.
- Competitive apartment prices
- Property costs in Turkey are much lower than in other European countries. Convenient financing methods are offered in the form of mortgage loans and interest-free installments from developers.
- Affordable cost of living and low taxes
- Climate and beautiful scenery
- Turkey offers the opportunity to enjoy beautiful landscapes, endless beaches, snow-capped mountain peaks, turquoise waters of the seas.
- The rapidly developing economy of the Republic of Turkey is suitable for investment.
Turkish economy in numbers:
- Turkey ranks 21st among the world’s largest economies with an average annual GDP growth rate of 8.87%.
Its GDP is estimated at $744 trillion with a purchasing power of $2.4 trillion.
- According to official data, the Turkish economy grew by more than 6 percent in the third quarter of 2020 compared to the previous year, surpassing all G20 countries except China.
- Real estate investment is one of the most important sectors of the Turkish economy as it accounts for 19.5% of the country’s GDP. This is an important contribution to the development of the country, which explains the Turkish government’s interest in this segment over the past decade.
The following factors affect the development of the Turkish economy:
- favorable geographic location.
This is the most important factor in the welfare of the republic. The country forms a bridge between two continents – Europe and Asia. This position provides access to a wide range of opportunities in the global market.
- Rapid growth of investments in the market.
The country is considered the third largest profitability in the world for real estate buyers. On the contrary, the square meter investment volume in Europe and the United States decreased significantly.
- Low taxes and benefits.
Reduced taxes and advantages in technological development zones, industrial zones and free zones are the main incentives for large strategic investments in the business world and therefore in the country’s economy. In addition, clear and transparent tax laws make investing in Turkey safer.
- Developed agricultural sector.
A favorable climate contributes to the prosperity of the agricultural sector. Turkey is the world’s seventh largest agricultural producer and leading supplier of hazelnuts, dried apricots and dried figs. The country exports 1,800 different agricultural products to nearly 200 countries.
- Turkey’s positive investment policy.
Highly competitive investment conditions conducive to foreign direct investment. The average time to establish a company is 6 days.
In 2020, Turkey’s population reached 84.33 million, of which 75.7% live in urban areas and annual population growth is estimated to be 1.35%. It is the 17th most populous country in the world, accounting for 1.08% of the world’s population. In addition, 60% of the total population is young, with an average age of about 31.5 years.
- Industrial development.
The rapid development of technology and transportation areas encourages investment in general and real estate investment in particular. As a result, industry is an important driver of economic growth.
So is it worth investing in real estate in Turkey now?
According to the Turkish Statistical Institute, despite the short-term stagnation in the real estate market due to the coronavirus pandemic, the amount of real estate sold to foreigners increased by 11% in 2020.
According to a report of the Turkish Statistical Institute:
In the first half of 2020, 581,798 residences were sold throughout Turkey, increasing the square meter sales rate to 32%.
Istanbul ranked first with 95,271 real estate transactions. As a result, 7 billion 792 million liras (1.3 billion dollars) came to the state treasury during this period.
In the January-October 2020 period, 1,280,852 residences were sold, 36,946 of which were to foreign nationals for a value of 18.4 billion TL.
By the end of 2022, approximately 6.3 million houses with a market value of 400 billion USD are expected to be offered for sale in the Turkish real estate market.
Favorable conditions for foreign investors in Turkey
There is also a frequently asked question by foreign investors – is it profitable to buy property in Turkey? The answer is YES!
The most profitable plans to invest in Turkish real estate:
- Buying and renting a house will provide a stable monthly income. The average annual rental income is about 4% of the flat price.
- Buying and reselling an object at a higher price.
- During the excavation phase, the flat purchase from the contractor will be 20% – 30% lower.
- Land purchase: purchasing land in strategic areas for commercial development. The constant demand for land for hotels, shopping centers, hotel complexes will allow you to generate an annual income of about 10%.
The experts of the BEST INVEST real estate agency are ready to advise you on real estate investment and choose an object with the most profitable potential at the most affordable price.