Opportunities and challenges of real estate investment in Turkiye 2024-2025

Studying the feasibility of real estate investment in Turkey requires looking beyond the current period to the foreseeable future and the near future, and researching the opportunities, challenges and obstacles that the coming period and years may bring and their direct impact on real estate investment returns, whether up or down. This also includes expectations of real estate prices in Turkey.

What makes Turkey a future investment destination?

During the past five years, Turkey has been able to be one of the most important and active real estate markets in the world, especially in the last three years, which made it advance in the list of investment countries, especially in the real estate sector, attracting various foreign nationalities who wish to own property in Turkey for housing or real estate investment in Turkey or obtaining Turkish citizenship through ownership.

Also, the preference for real estate investment in Turkey as it is guaranteed to preserve capital compared to other investment sectors and that it is one of the sectors with the least risks to the investment budget has generated a great investment incentive for foreign investors.

The Turkish real estate market provides great diversity to foreign investors in terms of opportunities, types of properties, and types of investment in them, from renting or reselling ready or under construction properties. The high demand for owning Turkish real estate coincides with the increase in the population and the growth in the demand of foreigners to Turkish cities, especially tourist ones, and thus the high demand. On real estate investment in Turkey.

We cannot ignore or forget the impact of the law granting Turkish citizenship through investment in generating an additional payment due to the Turkish real estate market after its approval at the beginning of 2017 and its amendments in subsequent years.

 

What are the real estate investment opportunities in Turkiye for the next two years?

Turkish real estate of all kinds attracts foreign investors by giving them several opportunities that will lead to more real estate ownership and strong entry into the Turkish investment market. Among the most prominent opportunities through which successes can be achieved during the next two years, 2024 and 2025, we mention:

• Own a property under construction, wait until construction is finished, then resell it again.
• Own a ready-made property, add simple modifications, including decorations and furnishings, and then resell it.
• Owning a ready-made residential or commercial property and renting it out in order to benefit from its investment returns.
• Own a property on the engineering plan at the lowest possible price and wait for its construction period, as the average construction period in Turkey ranges between 3 to 5 years, after which a large price difference is achieved.

Future challenges for the Turkish real estate market

While the real estate market offers many motivations, advantages, and opportunities, it is faced with a set of challenges that stand in the investor’s way, the most notable of which are:

The rise in the inflation index (consumer prices) in Turkey has affected the decline in demand for ownership of Turkish real estate and the decline in purchasing power among the Turkish people. However, there are indications and expectations that seem clearer with time that the inflation index will begin to decline starting at the beginning of the year 2024.

The Turkish Central Bank raising interest rates could lead investors to change their destination from real estate investment to banking investments.

Investors fear political changes in Turkey that would affect the reality of the Turkish economy and market. However, after Erdogan and his party win a new term, Turkey will experience a state of stability at all levels for a period of no less than 5 years.

What are the expected real estate prices in Turkiye for the years 2024 and 2025?

Turkish real estate prices cannot be predicted for long periods of time because they are subject to fluctuations and changes, and any positive news can raise its price, and vice versa when any negative news occurs.

According to the top real estate experts, the change in orientations of the Turkish government, the new economic administration, and the decisions to raise interest rates in recent months had a clear indication of the decline in Turkish real estate prices. However, these decisions cannot change the decision of a group of investors who see in raising the interest rate greater opportunities for profit from Real estate trade in Turkey, and the urgent need for housing and commercial real estate will push towards the ownership of more Turkish real estate, and these two contradictory factors are responsible for creating a kind of balance in Turkish real estate prices in the next stage and stabilizing them within normal limits, so that they will then resume their rise after the completion of the market cycle. Which will allow us to seize real estate opportunities at good prices in the current period and in the foreseeable future.

What is the possibility of the Turkiye real estate market suffering from a recession?

It is not possible for an economic recession to occur suddenly, but rather it must be preceded by a set of indicators and evidence indicating its imminent occurrence, and so far there is no indication of any expected recession in the Turkish real estate market in the foreseeable and medium term at the very least, especially since the Turkish government’s plans and efforts to develop Urban and reconstruction is still at its peak, such as the creation of new cities near vital and development projects such as the cities of the Istanbul Water Canal.

Will real estate prices decrease in Turkiye?

Observers, economic and real estate experts call the current period a “truce” with regard to real estate prices as they are affected by multiple factors, especially the raising of interest rates by the Turkish Central Bank and the government’s efforts to build more housing and real estate through giant projects at low prices and long-term payment methods. These government measures will affect... The significant increase in real estate prices in recent years.

Because of this government balance between those who raise interest rates on the one hand and increase the development of the Turkish real estate market on the other hand, most expectations are for the stability of Turkish real estate prices during the near period rather than their rise or decline with an inverse indicator.

Steps to ensure a successful real estate investment in the future

In order to lead the market instead of waiting for what may turn out, there are several steps that guarantee the success of real estate investment in Turkey regardless of external influences and factors. These steps are:

1-Choose the best location:

Whatever the market reality, the importance of the location cannot be overlooked. The vital location, which is in the middle of health, educational and entertainment service centres, highways and transportation networks, can only lead to the success of real estate investment in Turkey without the slightest.

2- Choosing the ideal property:

Choose your property intelligently, not with effort. The property itself must have the required specifications and is most popular in terms of the location of the property within the building and the type of building itself (independent, complex), especially since the recent trend has become greater towards residential complexes, and in contrast, independent buildings are witnessing an almost reluctance to own property in them, and this is due to the advantages Real estate complexes, based on their location, quality of construction, modern designs, and the inclusion of seismic barriers, in addition to the area of the property, the distribution of rooms, the view, and the availability of security, recreational, and social services, all play a great role in maintaining and even increasing the investment value of the property.

3- Seizing the most appropriate opportunities:

It is known that the best time to buy is between the months of November and April of each year, and real estate experts believe that this is the most appropriate period to acquire a suitable property at the most appropriate price.