Buying real estate in Turkey - a great opportunity for foreign investors to become the owner of a Turkish residence permit and citizenship, as well as increase their income. Residential real estate in resort regions is a really profitable asset that pays off quickly. Housing in Turkey is in demand among both tenants and buyers. And the constant growth in the cost of square meters only confirms the return on investment. Turkey provides a high return on investment, so the volume of investments is growing rapidly every year.Dynamics of real estate prices in Turkey
In the current 2023 Turkey was named the world leader in the growth of real estate prices. Eurostat confirms that the growth in the cost of real estate in the Republic of Turkey exceeds the indicators of European countries almost 20 times! In addition, this statement is also confirmed by the following data:
- At the end of 2023, the value of residential real estate has increased by 110%;
- The ROI (return on investment) period has increased to 16 years;
- The average value of residential real estate in Turkey has exceeded the $100000 mark;
- Antalya, Istanbul and Mersin are the top three cities for real estate purchases by foreign investors.
The growth of return on investment, as well as the increase in prices for Turkish real estate due to the investment attractiveness in the long term, as well as a simplified list of requirements for buyers. It is worth noting that when investing in real estate from $400000, you can get Turkish citizenship for your entire family.
Forecast of real estate prices in Turkey for 2024
For several years in a row, the cost of real estate in the Republic of Turkey is growing faster than in any other country in the world. According to experts, in 2024 the cost of real estate in Turkey will only increase. This is due to the following factors:
Investment strategy and profitability of real estate in Turkey
- Rising construction costs. In Turkey, the cost of all segments of construction is growing rapidly: labor, materials, legal permits and so on. Consequently, the price of new buildings is also rising, because no one wants to work at a loss. In addition, prices on the secondary market are also rising after new construction.
- Decrease in the pace of construction. The price increase prevents developers from selling their objects quickly. Therefore, they start construction of a new project only after the previous one is realized. Now, it is almost impossible to meet a case when a large developer builds several dozen residential complexes at the same time. At the end of 2023, the number of issued building permits has decreased by almost 2 times. This means that the deficit in the real estate market in 2024 will only increase.
- Land values. The cost of real estate is also growing due to the prices of land plots. After all, in the popular resort regions of Turkey, there are practically no vacant places for construction. In addition, buying land is a great idea for a profitable investment.
- Economic situation in the country. Despite the global crisis, investing in real estate is one of the most reliable investment instruments. This money will never depreciate, and real estate can be sold if necessary. So, the value of housing will constantly increase.
The rate of return always depends on the type of object and its location, as well as the class of housing, its view characteristics, the age of the housing stock and the level of infrastructure development in the surrounding area. For investment is better to give the advantage of multifunctional residential complexes with high quality construction and landscaping, rather than dense development without a unique author's concept.
Also, an important point in obtaining income from real estate is the timing of delivery. For the delivery of housing for a short period should choose objects with walking distance to the sea, the presence of nearby shopping and entertainment infrastructure, as well as access to historical sites.
If you plan to rent housing for long-term rent, it is worth choosing a property with the following characteristics: good transportation, lack of tourist noise and a high level of improvement of the area.
It is worth noting that the profitability of Turkish real estate will largely depend on whether the purchase of the above criteria are taken into account. The average rate of return on residential real estate for short-term rentals is 8-12%, and for long-term rentals - 6-8%. In addition, you can get a significant capital gain through the resale of real estate.
It is most profitable to buy real estate at the construction stage. Then the cost of the apartment will be cheaper by 30-40% of the usual market price. Always take into account that the cost of real estate in Turkey annually increases by 15%, and for the current year 2023 it has increased by 2 times.
At our webinar you will be able to get even more information about investing in Turkey, assess the main market trends and prospects for 2024, as well as analyze real cases of successful investors.