5 Reasons Real Estate Is Booming In Turkey
The strategic location of Turkey between two major civilizations positions it as one of the biggest emerging economies of the world. With Istanbul spanning between two continents, there has been an unprecedented influx of wealthy individuals from the Middle East and Europe, thus making the country a major force to reckon with.
According to Julian Walker, the Director of the London office of Spot Blue, residents of countries around the Persian Gulf have been some of the biggest home buyers in recent years. “Although they tend to seek high-end homes in new developments in Istanbul and other large cities, buyers from European countries are typically looking for summer homes along the Aegean Sea in places like Bodrum, Fethiye and Izmir.”
The implication is that the real estate market in Turkey and the economy at large will continue booming as long as rich immigrants won’t stop thronging into the country with their massive investments in real estate. Al-monitor reports that foreign real estate purchases amounted to $16.29 billion between 2009 and 2015, a figure that’s unprecedented in the history of foreign direct investments in Turkey.
With the current boom in Turkey’s real estate industry, it is evident that this trend will last for a very long time. Here are 5 reasons why.
- Tourist attractions
This is one of the biggest considerations for people looking to buy properties in foreign countries. Turkey is a multicultural society with an abundance of historical sites in places such as Istanbul, Antalya and Bodrum. It is a popular destination for vacationers who love its culture and spa, making it the 6th most popular tourist destinations in the world. Istanbul, being the largest city in Turkey, is one of the most popular tourism destinations, and this has made the Istanbul real estate to be extraordinarily flooded with highly valued pieces of properties.
- Strong economy
The overall health of an economy is a major factor which affects the value of real estate. This is because real estate reflects a significant portion of a people’s wealth, which is especially true for many homeowners in Turkey. Today, Turkey is described by IMF as a developed country, an emerging market economy, and one of the world’s newly industrialized economies. This is a fundamental reason for the upsurge in Turkey’s real estate industry.
- Change in the reciprocity principle
Before 2012, foreign individuals were only allowed to buy property in Turkey provided their country of origin allows Turkish citizens to do same. However, the principle of reciprocity was amended, allowing many nationalities the opportunity of acquiring property in Turkey. This opened the floodgate to citizens of as much as 183 countries to buy homes in Turkey with foreign real estate purchase accounting for 33% of investments in Turkey.
- Right to citizenship
Apart from the fact that foreigners who own property in Turkey are allowed to get resident permits, they’re also allowed to get full citizenship 5 years later. However they would be required to live in the country for that period of time, learn the Turkish language, and take steps that show real intention of gaining the citizenship. For this reason, prospective real estate owners see this opportunity as both and investment and citizenship plan. At present, foreigners own more than 15% of newer Istanbul residences.
- Relative affordability
Apart from the strategic position of Istanbul, tourist attractions, and other important factors that can lure investors to that country, prices of properties are considerably less when compared to other big European cities such as like London, Paris and Madrid. One would expect to see costly properties in Istanbul, a city nicknamed the European capital of culture and one of the fastest growing metropolitan economies of the world. But real estate experts say that homes in Istanbul are relatively cheap in spite of low taxes, perfect climate and peaceful atmosphere.