In 2019 it is time to pay attention of investors to the Turkish real estate market. Why should you invest in real estate in Turkey? What are the main reasons of investments?
The first reason is the law about reducing of the investment amount for the purchase of properties for citizenship in Turkey and the growth of sales.
If earlier, in order to obtain Turkish citizenship, it was necessary to buy a property for at least $ 1 million. In 2019 it is possible to obtain citizenship if you will invest just 250 thousand dollars. After the law was adopted about reducing of the investment amount for obtaining a residence permit, property sales increased significantly. During 11 months of 2018, foreigners bought more housing in Turkey than during all 2017 year, which is a kind of historical record.
Experts say that sales growth will continue in 2019.
The second reason is the development of tourism sphere and growing in popularity of recreation in Turkey.
A big plus of Turkey is a developed tourism sector. Turkish people know a lot about the provision of services. In 2018, the country was visited by more than 40 million tourists – a new record. Every year more and more people are interested to rent apartments instead of staying in hotels, that’s why it is profitable to give for rent properties.
Last year people began to book apartments in March, in 2019 since January the rental market has significantly revived. Apartments and villas can be purchased for rent or re-sale. It is especially profitable if to buy properties on the first construction stage or before starting of the construction, because the property can be sold at 20% -30% more expensive than the original cost. Many property owners buy several apartments at once, some of which they give for rent out and use money from rent for life in Turkey.
The developed sphere of tourism is also interesting as possibility of providing work places. Foreigners can legally work in tourism area, at hotels and major travel agencies issue a business visa.
The third reason is economic growth.
Despite the change in exchange rates since autumn 2018, Turkey continues to be one of Europe’s leaders in economic growth. The government introduced various regulation measures of the situation on the foreign exchange market. For example, as soon as the dollar against the Lira rose, there was a ban on the increase in the cost of some products. Assistance was provided to private business, banks reduced interest rates on loans. In Turkey, at the moment there is a significant decline in the Euro and the dollar against the Lira. It develops not only the tourism sector, but also agriculture and industry, expand the old and establish new export relations.
Also, the growth of the exchange rate affected the decline in prices in the secondary housing market, especially on real estate offers from Turkish owners in the local currency. Therefore, it’s time to buy a property at a reasonable cost in the secondary market for rental. But for resale it makes sense to invest in construction projects, because new houses are more liquid and you will have possibility during period of construction (1.5 -2 years) to earn an average of 25% from the invested funds.
Developed economy, affordable prices, demand for recreation, assistance and support of the government — all these are weighty arguments in favor of investment in real estate sphere of Turkey in 2019.