The Turkish real estate sector, has gained increasing importance in the last decade, offering ever greater opportunities for investors every year. Although the European and US real estate markets have been negatively affected by the recent economic crisis and the global economic recession, the real estate market in Turkey is still promising. While reduction in demand and a downward trend in house prices has been observed across all of Europe, the number of residential units sold in Turkey increased by 18 percent in the second quarter of 2011 compared to the same period of 2010, according to TurkStat statistics. These figures indicate that the country has huge potential for growth in the real estate sector.
While massive mergers and acquisitions taking place have helped its expansion and overall growth rates, the entry of global actors into the real estate market is increasing the competitiveness of the sector. Different surveys and publications like the “Emerging Trends in Real Estate Europe”, prepared collaborately by PricewaterhouseCoopers (PWC) and the Urban Land Institute, show how both global and local interest in the Turkish real estate sector has increased, especially in the recent years. According to the 2011 publication of the report, Istanbul is ranked as the most attractive market for investment in Europe for both development and new acquisitions, and the second most attractive for current investments, following Munich. Meanwhile, Turkey ranks as the 3rd most attractive destination for investment in the real estate sector among the emerging countries in 2012, according to a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE).
As Turkey makes progresses en-route to EU membership, the essential legislative reforms introduced have made investing in the real estate market even easier and more profitable. The amendments to the Land Registry Law, the Mortgage Law, and the redrafting of tax laws have also been designed to improve the competitiveness of the Turkish real estate sector.
The real estate sector in Turkey also has a great future thanks to demographic factors that are changing in accordance with improving economic figures. The demand for offices, logistical and industrial areas is expected to increase in line with the increasing number of global and local companies.
The Turkish real estate sector is characterized by the following:
- A sector that is stable, institutionalized and internationalized thanks to stable inflation rates and consistent prices.
- Auditing, dematerialization, transparency, high quality and standards, institutionalization and statistical information in line with the ongoing EU membership process.
- 60 percent of Turkey’s population is under the age of 34 and the country’s GDP was USD 736 billion in 2010.
- Housing loans increased from TRY 3.5 billion in 2004 to TRY 68 billion as of September 2011. The share of housing loans as a proportion of Turkey’s GDP is estimated to hit 15 percent in 2015.
For more information please visit: http://www.invest.gov.tr/en-US