Why is it a good idea to buy a property in Turkey? There are several compelling reasons to invest in this lovely country. Turkey is a great place to invest, plus the Turkish real estate market is still buoyant. Property prices are still increasing, admittedly at a slower pace than in 2016.
According to figures released by the Central Bank of the Republic of Turkey, the property price index rose by 11.6% in July 2017. Property prices increased 1.65% when altered for inflation, less than the 4.76% inflation-adjusted year-on-year price increase over the same time last year.
Turkish house prices
According to Knight Frank’s head of international residential analysis, property investment in the country has been steadily growing, owing mainly to the middle class obtaining access to a Turkish mortgage. The surge in property house prices slowed 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.
Property investors in the Turkish market
Sales of property have continued to grow, with year-over-year rises of 17% and 25% in September and October, respectively. This has been brought about largely by local needs, which is expected to rise next year. Commercial banks, backed by the Turkish President, have offered lower-cost loans. This has caused a hike in demand for property. House sales needing a mortgage increased by 71% in 2016, accounting for a third of all villa and apartment sales in Turkey, and this trend continued in 2017.
Overseas investment in the Turkish property market
Foreign investors are still buying in their droves. The top overseas buyers are from Saudi Arabia, who are at the top of the list for the most foreign property purchasers in Turkey in 2017, investing in 528 properties. Iraqis came in next with 344 units bought. Azerbaijanis came next with 278 units bought, then Kuwaitis with 154 units purchased, and Russians came in fifth with 125 Turkish homes purchased in October, according to data provided by (TÜK).
Where in Turkey are buyers investing?
Istanbul is a firm favourite; it is a hub for property investment and continues to be a major success, with 1,321 foreign property sales. Antalya on the Med coast comes in next with 465 properties that have been sold. Bursa is next with 121 units sold and then Yalova with 108 sold units. In the Aegean province, Aydin saw 93 properties sold.
Do you choose the Aegean or Mediterranean coastline?
The British prefer to buy along the Aegean and Mediterranean coasts, which offer panoramic views and stunning golden sandy beaches. Tourist resorts also have small clusters of ex-pats who enjoy life in Turkey. However, for those who prefer city life, Istanbul is a popular option. The up-and-coming areas near Istanbul, such as Bursa, Yalova, and Izmit, will undoubtedly pique the interest of many Brits seeking art galleries, museums, and Turkish culture in their daily lives.
UK nationals buying Turkey property
The British love Turkey, and according to statistics, over 32,000 British nationals to date have bought an investment in the Turkish property market. They buy for holiday or investment reasons. To date, UK nationals have bought more properties in Turkey than any other foreign buyer. What is the reason for this? It’s straightforward; the weather is a major factor, with over 300 days of sun each year and very mild winters. Add this to reasonably priced real estate, and you’ve got yourself a winner. Turkey continues to be the most popular destination for most buyers; it’s a fantastic investment!