Turkey makes for a fantastic investment, and the real estate market there is still booming. The reality is that property prices are still rising, but at a slower pace than in 2016. Recent figures released reveal Turkey’s nationwide house price index rose by 11.6% in the year to July 2017. (CBRT). House prices increased 1.65% when adjusted for inflation, less than the 4.76% inflation-adjusted year-on-year price increase over the same time last year.
House prices in Turkey
Property prices in Turkey have been steadily growing, owing mainly to the rising middle class gaining access to mortgage financing for the first time. Property price increases began to slow in 2016 due to economic and political instability, including terrorist attacks and political uncertainty. That year, Istanbul’s primary market took a beating. Despite the recent price drop, Turkey is likely to stay on investors’ radar in the long run, provided the underlying market dynamics of high demand and low supply. This is why investors ask, is buying property in Turkey a good investment?
House purchases in Turkey
Property sales have continued to grow, with year-over-year rises of 17% and 25% in September and October, respectively. There has been a high rise in local demand, which is expected to rise next year. Commercial banks, backed by President Erdogan, have provided lower-cost loans, causing a surge in local property demand. Mortgaged house sales increased by 71% in 2016, accounting for a third of all villa and apartment sales in Turkey.
Foreign investment in Turkey
Foreign investors are still buying. The top foreign buyers are Saudi Arabians, who topped the list for the most foreign property sales in Turkey in October 2017, purchasing 528 properties. Iraqis came in second with 344 units purchased. Azerbaijanis came in third with 278 units purchased, Kuwaitis came in fourth with 154 units purchased, and Russians came in fifth with 125 Turkish houses purchased in October.
Where are buyers investing in Turkey?
Istanbul is the favourite; it is a hotspot for investment and continues to be successful, with 1,321 foreign property sales. Antalya is in second place with 465 units sold, followed by Bursa with 121 units sold and Yalova with 108 units sold. Aydin, in the Aegean province, saw 93 properties sold.
UK nationals buying in Turkey
The British have a soft spot for Turkey, and according to estimates, over 32,000 British nationals have purchased a second home in Turkey, whether for vacation or investment purposes. To date, the British have purchased more properties in Turkey than any other foreign buyer. What is the reason for this? It’s effortless; the weather has a lot to do with it, with 300 days of sunshine per year and mild winters. Combine this with reasonably priced real estate, and you’ve got yourself a winner.
Where to look for real estate in Turkey:
Real estate prices in Kusadasi are lower than in other regions. This region offers a diverse selection of homes and properties, ranging from modest apartments to luxury condominiums. The luxury features of Kusadasi properties are well-known. In Kusadasi, you can easily find a villa with a private pool and a landscaped garden, as well as a peaceful and elegant multi-story home.
This destination is a popular vacation spot. The luxurious resorts and yachting marinas of Bodrum are well-known. Bodrum is home to a large number of international property buyers. Many people are drawn to Bodrum because of its language and culture.
Antalya and Alanya
Antalya was the first city to see a surge in demand for luxury homes after the Turkish government allowed foreigners to invest in real estate. Antalya is a bustling city with distinct neighbourhoods offering a range of ambiances. It’s a must-see destination, with investors hailing from more than 80 countries. In every way, Alanya appeals to real estate investors.