Main Reasons To Invest in Turkey Property
If you’re looking for a lucrative investment opportunity, look no further than the thriving real estate market in Turkey. With its strategic location, strong economy, and growing tourism industry, Turkey has become a hotspot for property investors seeking high returns. In this article, we’ll explore the main reasons why investing in Turkey property is a smart choice.
Why You Should Invest in Türkiye?
- Economic Growth: Turkey has experienced substantial economic growth over the past couple of decades. Between 2002 and 2017, its economy grew at an average annual rate of around 5.5%. While there have been some fluctuations, the overall growth trajectory has been positive.
- Geographical Location: As you mentioned, Turkey’s location straddling Europe and Asia is a significant advantage for trade and commerce. It serves as a gateway between these two continents and has been a historically important trade route.
- Population and Urbanization: Turkey has a large and growing population, investing turkey providing a potentially lucrative market for various industries, including real estate. Rapid urbanization has led to increased demand for housing, commercial spaces, and infrastructure.
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Thriving Economy and Strategic Location
Turkey has a lot of advantages for investors. Turkey is one of the fastest-growing economies in the world with an average annual GDP growth rate of 5.4% during 2003-2022. The country has a large domestic market and a skilled labor force. Turkey’s strategic location makes it an ideal hub for regional trade and investment. The country also offers incentive opportunities and low taxes on corporations. investing in turkey will create many opportunities.
Turkey’s economy has improved rapidly since 2002. During this period, GDP jumped from 231 billion dollars to 820 billion dollars.
Booming Real Estate Market
Turkey’s real estate market has been booming over the past few years, attracting both local and foreign investors. According to Cushman & Wakefield, Turkey’s real estate market is expected to continue growing in 2023. The residential real estate market in Turkey is estimated at USD 89.11 billion in 2023 and is expected to reach USD 151.23 billion by 2028, growing at a CAGR of 11.16% during the forecast period.
Property investment in Turkey offers the prospect of acquiring Turkish citizenship and residence. The appeal of investment property in Turkey, coupled with real estate investments in the country, makes it an attractive avenue for those seeking growth opportunities.
Attractive Investment Incentives
The Turkish government has implemented a range of incentives to attract both local and foreign investors. These incentives include tax breaks, reduced property acquisition costs, and streamlined processes for obtaining permits. Such investor-friendly policies not only make the investment process smoother but also enhance the overall return on investment.
Favorable Demographics and Urbanization
Turkey has a large and young population, with half of its people under the age of 33.5 in 2022. This creates a high demand for housing, education, health and social services, as well as a dynamic labor force and consumer market. This shift is driving the demand for housing, commercial spaces, and urban infrastructure. The real estate market in Turkey is responding by offering diverse properties that cater to different segments of the population. By strategically investing in locations poised for development, investors can ride the wave of urbanization to secure potential gains.
Obtaining Residency Through Property Investment
Türkiye offers an attractive route to obtaining residency through property investment. You can apply for a short-term residency permit if you own a property in Turkey, which is valid for up to two years and can be renewed. You need to provide proof of income, health insurance, address registration and other documents
The minimum value of the property you need to buy to get a residency permit varies depending on the city.
Cultural and Historical Richness
One of Turkey’s most prominent features is its rich history and cultural diversity. From ancient archaeological sites to bustling markets, the country offers a captivating blend of tradition and modernity. Owning property here not only provides an investment opportunity but also grants you access to a culturally enriching environment.
Growing Middle Class and Purchasing Power
Türkiye’s growing middle class is contributing to an increase in purchasing power and consumer spending. This upward trajectory bodes well for various sectors, including real estate. As people seek improved living standards, there is a demand for high-quality housing and lifestyle options. Property investors can tap into this burgeoning market by offering properties that cater to the evolving preferences of the middle class.
Foreign Ownership Regulations
The Türkiye government has eased regulations concerning foreign ownership of real estate. Non-Turkish citizens can acquire property with relative ease, making it an inviting proposition for international investors. This openness extends to both residential and commercial properties, opening up a world of investment possibilities.
FAQs About Investment In Turkey
Why should I consider investing in Turkey?
- Turkey has affordable property prices, especially compared to other European countries. You can find a variety of properties, from luxury villas to modern apartments, in different regions and climates
- Turkey has a young and dynamic population, with over 60% being under 40. It has a large pool of educated and skilled talent, especially in the technology sector. It also has a vibrant startup ecosystem, with many successful exits and acquisitions.
- Turkey offers incentives and support for investors, such as tax breaks, customs exemptions, land allocation, grants and loans. It also has a strategic location, connecting Europe, Asia and Africa. It has access to multiple markets and trade agreements.
How is the real estate market performing in Turkey?
Turkey’s real estate market is on a robust trajectory, with property values in major cities like Istanbul witnessing consistent growth of around 7-10% annually. For instance, in 2021, over 1.5 million residential units were sold across the country. Moreover, Turkey’s appeal as a tourist hotspot has fostered a thriving short-term rental sector, contributing to investor returns.
Are there any restrictions on foreign ownership of properties in Turkey?
Foreign ownership of properties in Turkey is generally straightforward. Non-Turkish citizens can own real estate with minimal restrictions, creating an inviting environment for international investors.
