Summary: This study explores the prices of properties and apartments in Turkey, and the factors determining that.
Introduction to Turkish economy:
- The Turkish economy is the biggest Islamic economy ever, preceding even the economy of the Saudi Arabia, not to mention that Turkey has achieved this all without accession to the European Union.
- The intermediate location of Turkey between the continents of Europe and Asia on one hand and the European regions, on the other hand, is considered a strong factor can be added to the marketing and geographical factors that are favored for the Arab investors.
The Price of Apartments in Turkey after the Law of Foreign Ownership
- After the Turkish Foreign Ownership Act was passed in 2012, property prices in Turkey rose rapidly, with most Arab nationalities having the right to own real estate, especially apartments in Turkey.
- Real estate is expected to increase the price of apartments in Turkey under the new legislation from 60% to 90% over the next five years.
- Under the law of 2012, the Turkish government approved more modern legislation more flexible, which opened the door to the citizens of more than 129 different countries around the world to enter the Turkish real estate market.
- At the same time, encouraging real estate and investment laws have been approved, reflecting positively on the prices of apartments and achieving the common and sustainable development interest of both sides. Turkey is the promising country and the incoming investor is looking for a new opportunity in a prosperous and stable country.
- The Turkish government, along with real estate companies in the private sector, is taking a leading role in encouraging real estate investment by making special offers and facilities to own apartments in Turkey and encouraging new real estate projects that will positively reflect the prices of apartments in Turkey and meet the needs of investors through Various payment methods, including a wide range of convenient installment options, are designed to make apartment prices in Turkey accessible to all budgets for all social and investment segments.
- The political, economic and social stability enjoyed by the country ensures the maintenance of apartments and real estate purchased in Turkey at their prices and escalated at stable rates over time. This was reflected in the smooth transition to the presidential system following the early June presidential and parliamentary elections in June 2018, which resulted in greater government empowerment and stability in Turkey.
Turkish Citizenship of the Foreign Investor
- The law of granting Turkish citizenship to real estate investors was issued in 2017. Under this law, the real estate investor can obtain Turkish citizenship through a real estate investment of $ 250 thousand and this includes most foreign nationalities.
What about the prices of apartments in Turkey compared to European?
- American Times newspaper reported that the average of Turkey real estate prices, in general, is still lower than the 50 to 60% of the price of real estate in Eastern Europe, and lower than 80 to 90% of those in Western Europe.
- Turkey provides the best real estate opportunities to foreign investors in terms of prices compared to other Mediterranean countries, in addition to the rental returns that amount to about 5.4% which is definitely among the highest in the region.
- Compared with the prices of apartments in Arab countries, the low prices of apartments in Turkey attract Arab investors to Turkey. In Istanbul, for example, the economic capital of Turkey and the biggest city in the world in terms of population, searching for apartments for sale in Istanbul, you may buy for $ 60 thousand a small apartment under construction with a good location in terms of tourism, and with a promising investment value that may reaches up to 90.000 $ once they made ready.
What are the main factors that determine the prices of properties in Turkey?
First, type of the city: That means the city tourism, commercial and industrial importance along with its proximity to the sea. There are many tourist cities in Turkey, such as Istanbul, which is considered the most important and beautiful and that is for the beaches, monuments and places of leisure and entertainment Istanbul has. The cities of Trabzon, Bursa, Antalya, and Yalova are of no less importance than Istanbul because of the charming and attractive nature. Whilst prices fall relatively in the inner cities, such as Konya, Eskişehir, Gaziantep, and others.
Second, property located within the city: there are several factors that determine the price:
- The proximity to the airport and transportations such as subways, and the main streets.
- The proximity to the tourist attractions such as beaches, public parks, the archaeological places such as the famous mosques and the antique palaces and castles, and finally the proximity to the places of leisure and entertainment.
- The proximity to the city center or the center of the area.
Third, the property specifications: This would be in terms of several main things, namely:
The property area, the number of rooms, bedrooms, baths and balconies, the year of construction, the floor number within the building, the readiness of housing, the delivery date, the type and quality of cladding, and other things.
In the end, we can say that the number of 70000$ to 100000$ can buy a decent apartment in a big city such as Istanbul. Generally, the prices of apartments in Turkey is still fairly low compared with countries that have the same features of the real estates in Turkey, and it is expected that sectors of real estate and construction will continue their growth and profits, while the Arab and European investors shall keep their interest in these sectors in Turkey due to the profits expected to be gained. It is true that there are still plenty of promising areas and vast expanses in Turkey that have not been invested; developers and investors did not enter yet, still that areas are right under their eyes because of its cheap value presently and its promising strategic location.
The customer always wants to get an approximate number of the real estate prices in Turkey, so we had to be published this article to show that the price is controlled by multiple factors that control the real estate and the city.
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