Turkey’s properties and houses have been able to occupy a privileged position among the best real estate in the world, especially that it combines the international European modern standards with reasonable price, as the real estate prices in Turkey represents a high investment value as it increases year after year which means an increase in the capital value, therefore, Turkey’s real estate and properties has become the first and safest destination to pump capital, reap the benefits of profit, and achieve maximum investment returns that can be won.
Real Estate Prices Forecast in Turkey 2023:
1. Apartment prices in Turkey has increased after issuing the foreigners Turkish real estate ownership law in 2012 exponentially, as this law has opened the door to Arab and Foreign nationalities to purchase real estate in Turkey.
2. Real estate experts expect that house prices in Turkey will rise from 60% to 90% over the next five years, based on Turkey entering its founding centenary and its quest to achieve Vision 2023.
3. The year 2012 witnessed the Turkish government's approval of modern, more flexible legislation, through which it opened the door for nationals of more than 129 countries from all over the world to enter the real estate market in Turkey.
4. At the same time, the Turkish government has approved many investment and real estate legislations to motivate real estate ownership in Turkey which reflects positively on house prices in Turkey and achieves the common and sustainable development interest, as Turkey is a promising country and the incoming investor is looking for a new opportunity in a country that enjoys prosperity and stability.
5. Turkish government alongside real estate companies has played an important role in motivating real estate investment in Turkey through offering special offers, facilities, and motivations to attract those interested in real estate ownership in Turkey which reflects positively on house prices in Turkey, and it meets the aspirations of investors through a variety of payment methods, including a wide range of convenient installment options, all with the aim of making house prices in Turkey accessible to all budgets and to all social and investment segments.
6. In its turn, the political, social, and economic stability that Turkey has led to the continued increase in house prices in Turkey and their escalation at stable rates over time.
Apartment Prices in Turkey Compared to Some European Countries:
Apartment low prices in Turkey is attracting Arab investors comparing these prices to some European countries, Istanbul properties for example, the economic capital of Turkey, you can purchase a small apartment under construction for 100k USD and can rise to 140k USD when its ready.
According to the Times American newspaper, real estate price rates in Turkey in general still 80% to 90% less than real estate prices in western Europe.
Also, Turkey provides real estate opportunities to foreign investors that are better in price compared to other countries bordering the Mediterranean, as well as investment returns of 5.4%, the highest in the region.
Factors that Affect House Prices in Turkey:
1. Location:
If we look on Istanbul for example, we see that it is divided to four real estate regions which are:
1. City centers.
2. The perimeter of city centers.
3. The coastline.
4. The suburbs.
City center located properties like Taksim and Sisli are recording a very high prices, while the most expensive properties are in Istanbul, and as we move away from the centers, we find that prices gradually decrease, reaching the suburbs where the cheapest real estate is located, such as the Esenyurt area.
2. Proximity to Vital Projects:
Turkish government are constantly working on proposing vital and developmental projects, from airports to roads, bridges, and tunnels that would play a major role in determining the prices of the surrounding properties, for example the properties and lands that surrounds both sides of Istanbul Canal, which its digging works has started in June 2021, has recorded major increases in prices and will record higher increases during the next six years.
3. The Location of the Property:
The more medical, educational, and recreational services such as hospitals, schools, universities, and shopping centers are available in the vicinity of the real estate, the higher its value, in addition to the fact that its proximity to highways and transportation networks such as the Metro, Metrobus, and others adds significant financial and investment value to real estate prices, and vice versa.
4. The Quality and Age of the Building:
Some complains about the price difference between properties located in old buildings and those located in new compounds in the same area, this is normal as the building age and the quality of the used material which plays a big role in determining its prices.
5. Social and Technological Services:
The recent years has witnessed many modern residential compounds in Turkey in general and especially Istanbul which competes among itself in offering security and recreational services, like elevators, swimming pools, playgrounds, and gardens, in addition to facilitating smart home systems to make our lives easier and making our home as close as few touches in an app on our phones, which is considered an essential factor in the price.
6. Ready Properties:
The ready property is considered more expensive than the under construction one, this is an investing factor where some would be interested in purchasing an under-construction property at a low price and wait until its ready which makes its price higher and achieve their investment goals.
7. Size:
Logically, the price of a 50 square meter size property would not be the same as the 250 square meters or more property, the bigger the property the higher the price and vice versa.
8. Type:
The Studio property 0+1 is the cheapest of all types, and the price goes higher with the room count, which means that the room count does affect the price of the property.
9. The View and The Height:
Its remarkable in Turkey that we find two properties in the same building facing each other on the same floor, with a clear difference in price even if they were the same size and type, this is due to the view, as the property with sea view or Bosphorus view or a tourist attraction view is more expensive that the one with city view or inner project garden view, also, the property on the top floor is at higher price than the one on the first floor, as the highest it goes the wider the view and the greater area of vision.
