Will Turkey's real estate market remain active in the future?

One of the most important questions that concern investors wishing to start their real estate investments in Turkey revolves around whether or not the Turkish real estate market will maintain its activity in the near and medium future and about ways to preserve capital and develop the investment value of the property.

There are several indicators that indicate that there will be no uncertainty in the scene during the next five years at least, and these indicators mean that the Turkish real estate market will continue to advance, prosper, and increase demand for it, as was the case in the past five years. These indicators are:

Results of the Turkish parliamentary and presidential elections 2023

The results of the Turkish elections that took place in late May 2023 removed doubts about the foreign investor in Turkey. After a huge number of statements from the other side about restricting foreign investors and limiting their ownership of Turkish real estate, Recep Tayyip Erdogan and the Justice and Development Party won a new presidential term, which means continued declared support. More than once, Turkish politicians, led by the Turkish President, removed obstacles facing foreign investors and provided them with incentives, legislation and laws supporting their investments in Turkey.

Stability in Türkiye during the years 2023-2028

With the end of the Turkish elections, Turkey began to witness stability that will be more evident at the beginning of the year 2024 for a period extending for at least the next five years, with continued support from foreign investors, support for the Turkish real estate sectors, and support for construction and contracting companies in Turkey.

 

Investment Office of the Presidency of the Republic of Turkey

The Investment Office in Turkey, affiliated with the Presidency of the Republic of Turkey, works to support foreign investors and provide advice, consultations, privileges, and trust to continue their investments in Turkey. Recently, the Office launched the Arabic language as an additional language for more comprehensive communication with Arab investors and to build bridges of trust between them and Turkey.

There are no signs of a real estate bubble in Türkiye

Real estate experts in Turkey agreed that there are no indicators of a real estate bubble in Turkey, and these indicators begin in stages that witness a decline in Turkish real estate prices with a lack of demand, a large supply, and high inflation, leading to the occurrence of a bubble. However, the next five years at least will not witness such a thing, and thus stability. Real estate market.

The continuation of the Russian-Ukrainian war

Europeans, led by the Russians and Ukrainians, continue to own more Turkish real estate and topped the list of nationalities purchasing the most real estate on a monthly and annual level. The continuity and increases in demand will lead to an increase in Turkish real estate prices during the foreseeable future at least.

More Gulf investors arrive in Türkiye

With the return of Turkish-Gulf relations to their previous state, Saudi, Qatari, and Emirati investors in particular continue to flock to Turkey and own more Turkish properties for housing or real estate investment.

Expectations of a decrease in the inflation index in Türkiye

Turkish and international economists expect the inflation index (consumer prices in Turkey) to begin to gradually decline at the beginning of next year 2024 in response to the economic and governmental decisions issued by the country's new financial administration.

The central bank raises interest rates

The Turkish Central Bank continues to raise interest rates for the seventh month in a row, reaching 40%. This means relieving pressure on the real estate sector and competing with the banking sector, with the availability of two basic segments of local and foreign investors, real estate investors and banking investors, thus creating a balance in the market and stabilizing Turkish real estate prices.

Centenary of the founding of the Turkish Republic 1923-2023

On the twenty-ninth of October of this year, Turkey’s leadership, government, and people celebrated the centenary of the founding of the state by opening a series of government development projects that began several years ago and will continue in the coming years from Istanbul International Airport, Basaksehir Medical City, other medical cities, highways and tunnels. North Marmara, the Istanbul-Izmir Highway, and others, in addition to other projects under construction, most notably the Istanbul Water Canal Project, as well as the Grand Istanbul Tunnel Project.

As Turkey enters its second centenary and the stage of what is known as the “Turkey Century,” government development projects continue within Turkey’s Vision 2023, which strengthens the economy. Local investment in Turkey in general and real estate investment in particular increases the value of neighboring lands and properties close to areas witnessing government projects and infrastructure development.

After reviewing all these indicators, we can say with confidence that the Turkish real estate market will maintain its prosperity and development during the coming years, in the foreseeable and medium-term at the very least.