Turkish Real Estate Market in 2024: Expert Insights and Forecasts

The Turkish real estate market continues to maintain its upward momentum, thanks to continued demand from locals, tourists and expatriates. The government contributes to stimulating the market through a citizenship program that attracts foreign investors. But will the market maintain its upward trend during the year 2024? Investors should comprehend the market and seek professional opinions and insights on the profitability of their investments. In this essay, we will look at the viability of investing in Turkey's real estate market.

Current Market Overview

The Turkish economy had challenges in 2023 because of inflation, the continued degradation of the Turkish currency, and the earthquake that rocked the country's south; yet, the real estate sector remained vital. During the year, real estate values increased by 37.52%. While sales rates fell by 14.3%. Istanbul retained the greatest market share at 15.9%.

Key Economic Factors Impacting the Market

• High Inflation: The annual inflation rate in Turkey accelerated to 64.8% in December 2023, the highest level since November 2022, compared to November's 62%, but slightly below market forecasts of 65.1%. These high percentages erode the purchasing power and increase construction costs.
• Rising Interest Rates: When inflation rises, the central bank is forced to fight it by raising interest rates, and as a direct result of this, demand suffocates and becomes lower. The Central Bank of Turkey increased its benchmark rate by the expected 250 basis points to 45% in January 2024. Because mortgages become expensive, the demand for
• Currency Fluctuations: The depreciation of the Turkish lira raises building prices for imported materials, prompting many developers to abandon the market as the cost of creating new projects rises while demand declines.
• Government Incentives: Governments encourage investment in the real estate market in a variety of ways, the most well-known of which is the citizenship programme for foreign investors, which has shown to be highly effective in raising demand for real estate in Turkey.
• Tourism Industry: A major driver of beachfront property demand and rental flats. As more visitors visit Turkey, investors become increasingly interested in developing projects.
• Foreign Investment: In 2023, the Turkish real estate sector saw a considerable increase in foreign investment, garnering nearly $7 billion. Turkey's numerous real estate alternatives, which range from urban flats to beach homes, have attracted this infusion of wealth. Furthermore, the surge in real estate values, along with favourable tax rules for property acquisitions, has increased the sector's appeal to overseas investors.

Turkish Real Estate Market: Expectations in 2024

According to Statista, Turkey's real estate industry is expected to rise further, reaching $7.81 trillion by 2024. Residential properties dominate the industry, which is predicted to reach US$10.29 trillion by 2028, increasing at a strong 7.14% per year. Globally, Turkey trails only China, yet it has a robust luxury property market supported by foreign investment. This spike in demand, together with sustained growth expectations, offers a positive image of the Turkish real estate market.

Will Real Estate Prices in Turkey Grow in 2024?

Prices in Turkey's real estate market are predicted to rise further in 2024, particularly in popular cities such as Mersin, Antalya, Alanya, and Istanbul. This growth is being fueled by new investments in urban infrastructure and industrial facilities. Foreign investors are eager to participate in these high-demand property areas, drawn by the possible profits. Experts believe that real estate prices are unlikely to fall due to high land and building costs that are unaffected by inflation and a lack of suitable land for home development. Furthermore, customer expectations for high-quality, safe homes are driving up building prices.

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Considerations Before Investing Real Estate Market

Investing, in general, is dangerous, and no matter how to correct future projections are, market changes can wipe out profits and expose the investment to loss. As a result, as an investor, you must constantly assess your level of risk tolerance and select opportunities that are right for you. Certain crucial aspects can help safeguard the investment from economic changes and unanticipated events while also keeping the property's value. These factors include the following:

• Location: It is the most important consideration you must take into account when it comes to real estate investment. There are some places that are in high demand and whose value increases over time despite the state the market is going through.
• Property type: Choose a property type that fits your plan and budget. Apartments are easier to handle, whereas villas are ideal for luxury investments or holiday rentals. Commercial properties need specialised knowledge and management skills.
• Legal aspects: Become acquainted with Turkish property laws, regulations, and tax consequences. Seek legal guidance on contract reviews and due diligence.

Invest with Imtilak in Turkiye

Investing in Turkey's thriving real estate industry is beneficial. The real estate market provides several chances along the Bosphorus with breathtaking views of Istanbul's skyline. Imtilak has properties that will appeal to every taste and requirement. Our professional staff can carefully analyse projects and properties, allowing you to make the best purchase decision. We've helped many homebuyers locate their ideal house. In addition, our attorneys are prepared to handle all legal elements and create the necessary paperwork for property registration.

Contact us and discuss your investments with our experts.