The Huge Impact of Tourism on the Turkish Real Estate Industry

Tourism is the first and most important engine of many industries in Turkey. It is one of the most famous tourist countries in the world. It has managed to gain widespread fame through all the major tourist attractions that attract millions of tourists every year.

If you're interested in the subject, you'll know that tourism in this country continues to grow exponentially.

In this article, the Property Superiors editorial team walks you through the realities of tourism impacting the Turkish real estate sector and highlights some of the types of tourism properties you can invest in.

How Does Tourism Affect Real Estate in Turkey?

The influx of tourists has had a positive impact on the real estate industry, increasing demand for vacation homes and investment properties. This has led to price increases, especially in popular tourist destinations such as Istanbul and Antalya.

However, there are concerns that the current growth rate is not sustainable in the long term and that the industry may decline, as well as concerns that reliance on tourism may make the economy vulnerable to shocks, but this is unlikely, based on indicators, which clearly confirms increase in the number of immigrants.

Property prices have risen an average of 10% per year over the past five years and are expected to continue rising in the coming years. The Turkish government is investing heavily in tourism and plans to build new airports, hotels and resorts.

Main Types of Tourism Real Estate in Turkey

Investing in tourism is one of the most important areas where you can reap huge profits and great returns, but first you need to know the most famous tourism real estate:

1 - Investment Hotels in Turkey:

Investing in hotels has many benefits. This is a very stable investment. Since people always need accommodation when they travel, there will always be a demand for hotel rooms. Hotels can also generate a lot of revenue. A well-run hotel can make a lot of money renting out rooms, selling food and beverages, making conference bookings, and more. Plus, managing your hotel investments is easy. Once you have built a good team, managing a hotel becomes very easy.

Of course, investing in hotels also has some disadvantages. One of them is that they can be very expensive to buy and set up. Another thing is that they can be difficult to sell if you need or want to exit your investments.

2- Store investment:

There are many advantages to investing in a business in Turkey, especially if you want to take advantage of the booming tourist season. Notable among them are:

- Many shops in Turkey are located in prime locations, popular with tourists. This means high traffic to your store and exposure to potential customers.
- Due to the increasing demand for corporate retail space, you are likely to receive high rental income from your store.
- As the Turkish economy continues to grow, your business value may increase over time. This makes investing in stores a good long-term investment.

3- Investing in restaurants in Turkey:

Some of the advantages of investing in restaurants in Turkey are:

- Turkey's catering industry is developing rapidly, with a CAGR of 9.8% from 2013 to 2018.
- 1 million people between the ages of 15 and 64. This provides the restaurant with a large potential customer base.
- The country's growing middle class is expected to account for 60% of the population by 2030. That means more people will have disposable income to eat out.
- Turkey is increasingly urbanized, with 75% of the population expected to be urban by 2050. This trend is likely to continue to drive growth in the restaurant industry as more people live in areas with more dining options.

4- Investing in hotel apartments:

Hotel apartments are an excellent way to invest in Turkey as they offer a range of benefits. First, hotel apartments offer higher rental yields than traditional residential properties. This is because hotel guests are willing to pay extra to have their own space, kitchen and area without any inconvenience.

Another benefit of investing in hotel apartments is that they are easier to rent out than regular apartments. Because there is always a demand for short-term rentals from tourists and business travelers.

Important information when investing in tourism real estate:

- The Turkish government offers several incentives to encourage foreign investors to buy property in Turkey. These include granting citizenship to those who invest more than $400,000 and lowering the minimum investment required to obtain a residence permit from the previous $1 million.
-The most popular tourist real estate investment regions in Turkey are Istanbul, Antalya and Bodrum.
- Istanbul is the most populous city in Turkey and the economic and cultural center of the country. It's also home to some of the world's most famous historical monuments, such as Hagia Sophia and Topkapi Palace.
- Antalya is the largest holiday resort in Turkey, located on the coast of the Mediterranean Sea. With its beautiful beaches, historical sites and vibrant nightlife, it is a popular destination for local and foreign tourists.
- Bodrum is an upscale town on the Aegean coast. It is known for its luxury hotels, trendy restaurants and vibrant nightlife.
To see the latest information about the real estate industry in Turkey, keep an eye on our website as we use it to answer all our clients' questions.