Summary: This study explores the prices of properties and apartments in Turkey, and the factors determining that.
Introduction about Turkish economy:
- 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.
Real estates prices in Turkey after the Law on Real Estate Acquisition of Foreigners
After the issuance of the Law on Real Estate Acquisition of Foreigners in Turkey in 2012, real estates prices in Turkey had risen straightway to high levels, especially the old real estates, due to the large demand for them, the thing that the real estate marketing companies began to sense. For that and basing on the new legislation, Imtilak real estate believes that prices of apartments will rise in Turkey from 60% to 90% during the upcoming five years.
What about the prices of apartments in Turkey compared 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 Yalwa 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 location within the city: there are several factors that determine the price:
A. The proximity to the airport and transportations such as subways, and the main streets.
B. 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.
C. 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.
At 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 numbers of the real estate prices in Turkey, so we had to be publish this article to show that the price is controlled by multiple factors that control the real estate and the city.
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