Turkey has a very robust housing sector and property construction has played a very important role in it’s economic growth over the past decade. Foreign citizens have shown an interest in buying property in Turkey and, in particular the regions of Mugla and Antalya, are popular with German, English and Russian buyers who have become publicly renowned because of the amount of property they have bought. Property purchases for business or investment purposes usually take place in Istanbul and its metropolis centres, including areas which are beginning to grow into cities. Large international companies are not the only investors, with middle sized companies showing an interest in Istanbul property, too. On the other hand, individuals who wish to settle down long-term have a wide range of possibilities set out for them in large cities.
The property sector in Turkey and tips to remember when buying
Property sales to foreigners are mostly seen in the coastal towns of the Aegean and Mediterranean as well as Istanbul. Locations near vacation spots are especially favoured by German and British citizens and recent relaxations in legislation have made buying property even more attractive. The English language guide prepared by the Foreign Secretary’s Office addresses Turkish property for foreign buyers and outlines what you need to do in order to start a purchase. Despite an easier legislation, restrictions continue to apply to citizens of certain countries and some citizens have limited access with an obligation to apply for permission. Therefore, it is a good idea to find out from your embassy whether these rules apply to you and what your restrictions and permits entail.
Turkey’s construction sector increased by 4,6% in 2014 in comparison to the previous year, resulting in a large hike in Turkey’s housing stock. Based on this, economists have commented that the sector has reached saturation in 2015 and this has now created a pricing balloon. On the other hand, in 2015 the US central bank FED expected an interest increase in the US dollar whereby a huge fall in house prices was forecast due to the loss in TL value. Therefore, many property investors are waiting for the FED’s intervention with interest rates before entering into the Turkish property market at this time.
Arabs who spend in the Turkey property market primarily for investment purposes particularly prefer to buy in Istanbul’s finance centres such as Maslak and Atasehir and near the airports, such as the districts of Bakirkoy and Pendik. The traditional and older districts of Kadikoy, Beyoglu, Besiktas and Sisli are part of the city’s rejuvenation project and have become popular with investors for this reason. Istanbul is top of the property investors’ lists because of its suitability and wide range of property types for investment, living, holidays and temporary housing for students. In May 2015, for example, property sales to foreigners reached a record number of 1,982 per month and 636 of these transactions took place in Istanbul while 546 were in Antalya.