Real Estate Market and Turkey - What to Expect?

Every new year comes with new opportunities. Are we ready to take it or not? This is the real question. If we are talking about the Turkish real estate market as an opportunity, it’s an opportunity that you should not miss.

Well, why? Why is the Turkish real estate market so important and such a “huge” opportunity? First of all let’s look at the 2023 expectation. This knowledge will be helpful for us to understand whether we should make an investment in Turkey or not?

All the economical and financial aspects of the world have changed. We can put in a line millions of factors on what caused these changes yet in short, the biggest reason was the pandemic.

After the pandemic, the world still tries to recover and pick up the pieces. This kind of huge event affected the trust to the future in a negative way. Inflationist trends continue to rise all over the world.

Issues and concerns for 2023 and next 5 years on real estate market

According to the PwC’s Emerging Trends in Real Estate Europe 2023 Report, European business environment main concerns for 2023 are inflation, interest rate movements, European economic growth, currency volatility. Also real estate business issues in 2023 and over the next five years are construction costs, availability of resources, environmental sustainability/decarbonisation requirements, availability of (re)finance and increased regulations at national and international level.

In the same report 71% of the respondents claimed that Europe will move into a recession in 2023. Additionally 72% of the respondents believe that “inflation will remain significantly above normalized levels of 2-3% for the next 3-5 years.”

What does this data whisper to us?

On the first hand, this data whispers to us that:

Whether in 2023 and next five years we need to evaluate all the investment options and we need to pick the most resilient one.

Of course there are thousands of investment assets but which do we need to rely on?

Investment: There are a number of options but which one is best?

As an investment we can count stocks, bonds, exchange traded funds or even crypto currencies. Every one of these can be a good asset to invest in. On the other hand, these types of investments are typically fragile. Such investment instruments are very sensitive to conditions. They can be highly affected by political uncertainties, environmental disasters, and so on. We are not saying that these investment assets are a bad choice. No. But the data above says “You need to pick a resilient and sustainable one.”

If we listen to what UN-Habitat says we can develop a better understanding on the real value of making investment on the real estate market:

“The world needs to build 96,000 new affordable homes every day to house the estimated 3 billion people who will need access to adequate housing by 2030.”

You can read more about the “What has caused the global housing crisis - and how can we fix it?” on the World Economic Forum official website.

Real estate as an investment asset

Real estate is a sector that is constantly changing, but it is always in demand. This makes it a perfect investment asset. As we emphasized before, in the future there will be more need for real estate than we need today. It’s not just a population focused approach. Yes, we know that population growth is on an enormous level. But residential properties are not the only real estate types that we are discussing right now. Ever-changing economic conditions drive to find and adopt new business models and also develop new ones. For example before the pandemic, we relied heavily on the retail industry, but the fragility of the supply chain leads manufacturers to different logistics options.

In that sense, the real estate market will always be alive and well. The need for real estate and the tendency of the world economic situation tells us, “You need to hurry.”

Do you need to hurry on the real estate market?

Short answer is yes. Let’s go with the details.

Regulations. Regulations are always changing. For example, in order to get citizenship through investment in Turkey, it was enough to buy a real estate of $250,000, but now you need to buy a real estate of $400,000. And we can not say that was the last regulation change.

Inflationist Trend. Like we mentioned above, the inflation trend is on the rise. It means that every time that you wait for a more suitable opportunity your money devalues and the real estate prices get higher.

Housing Supply. All over the world, developers continue to develop their construction. Yet this doesn't mean that housing supply will be enough to cover the demand. This is another reason why real estate prices are getting higher. Still there are some experts hoping that the real estate buying prices will go down after a while but the rental demand is on the rise.

Rental Demand. Like we mentioned earlier, rental demand is on the rise. Even if real estate prices go down, rental prices are going to rise for a long period of time because of the limited housing supply. And it means, the sooner you invest in real estate, the more profitable the return will be for you.

Turkish Real Estate Market in 2023

The Turkish real estate market is full of life. Real estate prices - for sale or for rent, doesn’t matter - are getting higher. Prices of property for sale in Turkey have increased 4.4 times in the last three years. Also, prices of property for rent in Turkey have increased 6.6 times in the same period.

Will house prices increase in Turkey?

Experts predict that real estate prices are going to rise this year. Government has some massive housing projects on its plan but these projects will approximately finish in two years. So it is unrealistic to expect a decrease in real estate prices due to these projects.

What does that mean?

Actually it means that it’s the right time to invest in real estate in Turkey. before the prices got higher. It's the right time and Turkey is the right place to invest. According to best-citizenship.com’s Best Citizenship by Investments Rankings 2023 Report, Turkey ranks 8th in general and 3rd in Europe in terms of obtaining citizenship by investment.

It means that you can make an investment into a reliable and profitable asset right now. If you are interested, you can check our properties for sale in Turkey by clicking the link. Also you can see our “Tips for buying real estate in Turkey in 2023” too.

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