The most recent figures point to encouraging signs for the Turkish real estate sector in the coming year. Due to the Covid-19 pandemic, there has been a significant impact on the global economy in all sectors, including the Turkish economy and especially the real estate market. The good news is that more growth and positives are expected in the current year 2021, which is expected to see a global economic breakthrough as the pandemic fades and vaccination efforts against the virus begin in all countries worldwide. Is Turkey on your property wish list?
The Turkish economy ended the year with positive indicators, prompting many economic authorities, such as the World Bank and Fitch, for affiliation classification. This was to change their expectations for the Turkish economy’s state in 2021. Experts attributed these positive expectations to a series of reforms introduced in the final two months of the year. These economic projections would affect successful real estate investment in Turkey.
After analysts at the World Bank estimated that the Turkish economy would expand by 0.5% in 2021, they updated their estimates to 4.5% at the start of this year. They are projected to increase to 5% by 2022. According to Fitch Ratings analysts, the launch of Corona virus vaccination will ease previously imposed lock-down and quarantine restrictions, causing the Turkish economy to accelerate in the second half of this year.
Turkish real estate market
In terms of the Turkish real estate market, analysts predict that new homes’ prices will steadily grow this year, increasing by 20% in the first half and possibly reaching 50% due to last year’s large sales. Turkey has set a new milestone for home sales, with one million 499 thousand and 316 homes sold in 2020. As a result, home sales in 2021 are expected to rise by 11.2% over the previous year. This resulted in banks offering lower interest rates and attracting many customers, many of whom were foreign nationals.
Reasons for the property boom in Turkey include:
The Turkish government has approved real estate tax cuts.
The Turkish government provides services to international investors and shareholders.
The prospect of acquiring Turkish citizenship through the purchase of Turkish real estate.
The rapid growth of infrastructure around the real scourge and the completion of mega projects like Istanbul International Airport.
Price of new builds
The high costs of new homes are another explanation for their high prices. New price lists will be released shortly, according to local real estate officials in Turkey. As a result, the spending companies would set new rates based on the costs. The rise began in August of 2018, but due to the business condition, it was not reflected in prices.
It should be noted that the rate of increase in real estate prices in Turkey is not uniform across the country; somewhat, it is influenced by the balance of supply, demand, and consumer interest. Global breakthroughs in the emerging corona virus pandemic would increase demand for real estate acquisition and real estate tourism in Turkey.
What to do if you are looking to invest in Turkish property:
Look for a good agent
Select a reputable real estate agent or consulting company with a proven track record of success. This will help you with accurate information and observations to provide you with sound advice for your purchase’s success, where the real estate advisor is often up to date on the real estate market, assisting the investor in deciding where to invest.
How do you find a suitable property?
Residents in Turkey are known to determine the direction of the real estate market, so seeing a property from a resident’s eyes rather than a tourist is a smart idea. To meet the investment goal, choose a property based on residents’ preferences and needs.