Because Turkey has been removed from the red list, foreign buyers of Turkish property in 2021 will visit and purchase second residences. The Coronavirus “Covid-19” pandemic has had a significant impact on the world economy in all sectors, including the Turkish economy, and particularly the real estate sector. However, all recent statistics have revealed very positive indicators for the Turkish real estate market in the past year. Take a look at our guide to buying Turkish real estate it will help you decide where you want to buy.
Turkey’s Real Estate Market Outlook for 2021
The Central Bank of the Republic of Turkey (CBRT) stated nationwide house prices increased by 30.6% in the year to Q1 2021, to an average of TRY 4,054 (US$502) per square metre (sq. m., following year-on-year increases of 32.6% in Q4 2020, 28.1% in Q3, 23.7% in Q2, and 15.1% in Q1. Over the next five years, the Residential Real Estate Market is expected to increase at a CAGR of 11.05%.
How the Turkish economy is performing
At the end of last year, the Turkish economy showed positive indicators, therefore many monetary authorities, such as the World Bank and Fitch, for affiliation classification to change their expectations for the state of the Turkish economy in 2021. Financial specialists reported that there were helpful suggestions for changes implemented in the final two months of the year. These economic estimates will have an impact on Turkey’s real estate market and pricing.
After experts at the World Bank estimated that the Turkish economy would grow by 0.5% in 2021, they amended their projections to 4.5% at the start of this year, and they are expected to rise to 5% by 2022. According to ratings specialists, the start of the Coronavirus vaccine will lift previously imposed lock-down and quarantine restrictions. This will cause the Turkish economy to accelerate in the second half of this year.
What do analysts predict for the end of 2021?
In terms of the Turkish real estate market, analysts predict that prices for new homes will progressively grow this year, rising by 20% in the first half and maybe reaching 50% due to last year’s high sales. Turkey has set a new milestone for housing sales, with one million 499 thousand and 316 dwellings sold in 2020. As a result, home sales in 2020 are expected to climb by 11.2% over the previous year. This resulted in banks offering cheaper interest rates and attracting many customers, many of whom were foreign nationals.
Other factors contributing to Turkey’s real estate boom include:
The Turkish government has approved real estate tax cuts.The Turkish government provides services to international investors and owners.The potential of getting Turkish citizenship through the purchase of Turkish real estate.The rapid growth of infrastructure over the entire area and the completion of large projects like Istanbul International Airport.
Property prices are expected to rise
The high costs of new homes are another factor for their high prices. New price lists will be released soon, according to local real estate officials in Turkey. As a result, the investing corporations will set new pricing based on the costs.The hike began in August 2018. Still, due to the market condition at the time, it was not reflected in prices. Its effects did not manifest themselves until the final period.
It should be mentioned 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 market interest. Worldwide advances in the emerging coronavirus pandemic will raise demand for real estate acquisition and real estate tourism in Turkey.