The future of real estate investment in Turkey: Opportunities and challenges

Why is Turkey an ideal destination for real estate investment?

After more than five years, Turkey has been one of the most active markets in the real estate sector and one of the most attractive due to its rapid growth, especially in the last three years. It is only natural that Turkey is classified as one of the most popular and dynamic real estate markets, attracting foreign investors and maintaining vibrancy even in the local trading of various types of properties.

Moreover, real estate investment is the best guarantee for preserving capital, as property is a fixed asset whose value increases over time, which motivates investors towards the growing Turkish real estate market.

Many investors in Turkey also aim to benefit from their property in two ways: either by renting or living in it, or by selling it when its value increases.

The Turkish real estate market has demonstrated its prosperity and vitality over the past years, recording encouraging price increases. Those who bought property two years ago can now reap good profits from their patience.

The increasing demand for real estate products and goods in Turkey, along with population growth, is one of the main factors behind the success of real estate investment. This is in addition to the growing interest of foreigners in owning property in Turkey’s tourist cities, which further boosts demand and supports this investment sector.

Let’s also not forget the incentive for investors to obtain Turkish citizenship by purchasing a property worth $400,000 and committing not to sell it for 3 years, which will encourage more people to benefit from this important advantage.

The most important future opportunities in the Turkish real estate market

Opportunities are diverse and varied, but their main focus remains: the expected benefit to be gained from the property after a period of time.

Many experiences over the past years have shown that modern real estate products with high demand are among the top investment fields for achieving profit.

Seizing real opportunities requires wisdom in selection and the ability to make decisions at the right time. Therefore, expertise and intelligence in choosing, based on consulting specialists, will be the key to winning real and promising opportunities for profit.

Read more about: The Turkish real estate market and its types and how to invest in real estate in Turkey

The main future challenges of the real estate market in Turkey

It would not be fair to describe the real estate market as a field of flowers; there are inevitably some real challenges that may affect its growth. The most important challenges in Turkey are:

• Inflation and its impact on limited demand for real estate and reduced purchasing power for some segments of the population. However, the state is making every effort to address this issue through various methods, hoping for real results.
• The rise in interest rates after a long period of reductions, which will prompt many investors to shift their investments from real estate to bank deposits.
• Concerns about political changes in the country, which could affect demand for the Turkish real estate market, especially from foreign investors.

Learn about: Turkey’s economic reform plan to boost investment

Real estate price forecasts in Turkey 2024 – 2025

In reality, predicting the future of real estate for long periods may be somewhat of an unacceptable guesswork, as the real estate market everywhere is subject to fluctuations and changes. Any positive news can increase its value, while any negative news can have the opposite effect on prices.

However, based on the available data up to today, we can say: The change in the Turkish government’s approach regarding interest rates and the decision to raise them to relatively high levels has contributed to a decrease in price indices. Yet, these decisions will only deter a segment of investors who see higher interest rates as a safer haven for profit than real estate. Meanwhile, the strong need for real estate products will push indicators to form a strong resistance that cannot be overcome, which is expected to create a balance in prices in the coming period and stabilize them at natural levels, before resuming growth once the market cycle is complete. This will provide opportunities to seize real estate at good prices in the current or near future.

Read more about: Property prices in Turkey

Will the real estate market face stagnation in the near future?

There are no signs indicating a decline in the local real estate market, as the urgent need for real estate products is constantly increasing, especially with the state’s continuous efforts to revitalize real estate development projects aimed at establishing new cities in place of old ones or informal housing.

As for foreign demand, the numbers still indicate a rise in foreign interest in Turkish properties, even if this demand sometimes goes through periods of relative decline.

Will real estate prices in Turkey decrease in the future?

The current conditions suggest a kind of truce in Turkish real estate prices, influenced by several factors such as rising interest rates and the government’s efforts to inject real estate products through its massive projects with reduced prices and long-term payment plans. These government measures were taken following the significant increase in real estate prices.

As mentioned earlier, this will create resistance for a period of time in price indices, but the urgent need for more real estate products will push the market to maintain prices and then resume growth again.

Read more about: Will real estate prices in Turkey decrease in the future? 2024

How can I ensure a successful real estate investment in Turkey at any time?

Every successful investment has its conditions that affect its existence and growth. If the conditions for successful real estate investment are not met, that investment will lack the elements of success.

It is important to discuss here the success triad in real estate investment, which is:

Choosing the ideal location for investment

Choosing the ideal location for real estate investment is one of the most important factors affecting the success of the investment and achieving future profits. The right location plays a key role in determining the value of the property and the level of demand for it, whether by investors or tenants, after considering the facilities and services surrounding the location or its attractions (touristic, commercial, or service-related).

If you succeed in choosing a suitable real estate area, know that you have completed a third of the way towards your investment’s success.

Choosing the right property

Opportunities in the chosen location may vary between good and better options, and properties of different sizes each have features that make them stand out. Here comes the task of searching for opportunities expected to bear fruit soon or in the foreseeable future.

For example, it is not usually profitable to invest in relatively old properties, especially since investment focus is typically on modern buildings, luxury residential complexes, or even projects still on the plan or under construction, as these are expected to see price growth soon.

Seize the opportunity at the right price

Buying at the right time is also one of the formulas for investment success, so that price growth later works in your favor and you achieve your profit dreams from this investment.

You may be interested to read about: The top tips for real estate investment in Turkey

The most successful types of real estate investments in Turkey

The most successful and promising real estate investments in Turkey generally fall into one of the following categories:

Residential properties: villas, apartments, and houses

These are the residential units with continuous demand, which have formed the backbone of the growing real estate market in Turkey in recent years. They are an ideal field for profitable investment, provided the right choice and good property management.

Commercial properties and offices

Investment opportunities in this type of property can yield attractive profits in many cases, provided the right selection rules for commercial properties are followed. High demand and good fortune are among the most important factors for choosing the most profitable commercial property.

Read more about: Commercial properties in Turkey and commercial property prices in Turkey

Touristic and hotel properties

The unprecedented tourism demand for Turkey has given these properties with a touristic character lucrative profit opportunities, whether through investment in hotels, resorts, or establishments focused on this major investment sector.

Be part of a brighter future by investing with Imtilak Real Estate

With the dawn of the foreign real estate investment market in Turkey, Imtilak had a prominent role in providing its professional services in consulting, marketing, and real estate brokerage. Its activity extended to hundreds of major projects and thousands of rich and ideal opportunities for freehold and investment, in addition to exclusive marketing projects.

The seed was planted in Istanbul, which is considered the main hub for investment and tourism in Turkey. Then, the branches of our towering tree extended to many Turkish cities with the largest real estate and tourism activity. Our offices in other Turkish cities became focal points for providing ideal and field services to our clients, starting from the first contact with the client until the finalization of deals, with our integrated post-purchase services and much more, all to facilitate the process of real estate acquisition and serve our clients' investment goals.

Edited by: Imtilak Real Estate©