Is it time to buy a property in Turkey?
Is it time to buy a property in Turkey?
At first we will talk about the real estate market situation in Turkey in 2018 and its impact on the changes of the exchange rate of the Turkish lira against the US dollar and then we will talk about 2019 to compare the past to the present and will give the answer of Is it time to buy a property in Turkey?
In 2018, in August and September, the Turkish lira exchange rate against the US dollar rose from about 4.5 per dollar to 7.2 per dollar and then dropped and stabilized around 6.5 TL per US dollar, which means a decline of about 30% during 2018, which is equivalent to The annual inflation rate in Turkey is almost double, which is approximately 16%.
At that time the opportunity to invest and buy property in Turkey became a golden opportunity for foreign investor because his foreign money has more value when spent against the Turkish lira, at the same time real estate is priced based on the Turkish lira, all means that who bought a property in the last quarter of a year 2018 he received an immediate profit equal to the value of inflation of the dollar against the Turkish lira, which, as we mentioned, almost 30% in 2018.
In 2018, we saw a significant growth in demand for real estate in the Turkish market and is already a market desirable by foreign investors who want to live, study and work in Turkey and after the rise of the dollar against the Turkish lira demand has become much greater than before.
And now in 2019 in the fourth quarter of it reached the exchange rate of the dollar against the Turkish lira to 5.75, which means an increase from the exchange rate in the first quarter of the year, which was 5.20 increase naturally, and now the investor who bought during the last year or did not buy during the last year for any Why was he still having the opportunity to invest in Istanbul and get investment gains?
Let us present the following facts about the Turkish real estate market so that we can efficiently answer the previous question:
- The Turkish real estate market is primarily a local market and its dependence on foreign investments by not more than 2 %.In 2017, the number of housing units sold to foreigners is 22,000 housing units compared to 1.400.000 for the local population according to the Turkish Statistical Institute. But in a relatively simple way, the local Turkish real estate market is always active and promising investment
- Buying in residential complexes ready or under construction in its final stages is the guarantee of obtaining interest from this investment because pricing in real estate is based on several things, including the cost of building materials that were previously at lower prices than the current prices with the exchange rate, also real estate Under construction in its early stages very promising in the field of real estate investment for the following reason: It is true that the materials used in the construction of these projects are materials at high prices relative to the dollar exchange rate agreement against the Turkish lira, but at the same time according to the supply and demand formula This means that prices are relatively low and will rise after several years when the equation of supply and demand is equal again. Therefore, those who buy real estate now will gain in the future when these properties are completed and their investment values are completed.
- Followers of the news of Turkey accurately aware that Turkey is subjected to a lot of foreign hostilities and conspiracies through the failed military coup attempt in 2016 and once through the explosions of the New Year celebration in 2017 and once by trying to fabricate an economic crisis by manipulating the dollar exchange rates against The Turkish lira in 2018 and finally in 2019 the impact of inflation rates on prices and the domestic market in all sectors,
It is noteworthy that all these attempts to slow the progress of Turkey failed and every time Turkey got out of these crises more strongly and a stronger economy, this does not like Turkey’s enemies but facts proven by the figures and this in itself made investment in Turkey more secure and profitable
- The ongoing facilities provided by the Turkish government to foreign investors is a very positive factor that has pushed many investors to own property in Turkey, such as granting Turkish citizenship to those who invest 250 thousand US dollars after the required investment amount is 1 million US dollars. Turkish investors in exchange for this amount is really encouraging and especially for investors from countries with a weak passport globally can now get the Turkish passport within a period of two months in addition to successful investment in a rising country with a constantly growing economy
- Turkey is a young country and this means that the demand for houses for housing and shops to work will increase in the local market certainly, but not in the present, but in the future and this is a medium or long-term investment is inevitably profitable, because the ingredients of success are all available in a developed country Like Turkey
Having mentioned these points in detail we can say that the answer to the previous question and the question in the title of the article has become easy, yes, the time is right now so far to buy a property in Turkey and real estate investment in Turkey in general and in Istanbul in particular
The ingredients of investment success are available and we stress them here:
- The unique geographical location where Turkey mediates the world and this made it a meeting place for businessmen and the headquarters of huge companies in the world
- The preferred climate by tourists from all over the world and the fact that Turkey is a tourist country this in itself is a component of the success of real estate investment much more by renting apartments for tourists and students as well as investment in hotels
- Turkey is a country occupying a prominent position in the economy among the countries of the world, thanks to the multiplicity of economic resources from the real estate market, tourism, agriculture, industry and trade
- According to the treaty that will expire in 2023 Turkey so far cannot prospect for oil and underground wealth, but when you reach 2023 you can imagine what will happen from the great revolution and improvement in the prices of hydrocarbons and transport sector and all that will follow
- Frequent demand for real estate in Turkey, especially in Istanbul at an increasing rate for more than 10 years and this rate will continue to increase as long as the appropriate ingredients for real estate investment are available
- Obtaining Turkish citizenship for real estate investment and pledging not to sell the property for 3 years This decision itself revolutionized the concept of real estate investment in Turkey and Istanbul specifically because the required investment amount of 250 thousand US dollars is not a great amount for any investor, but the advantages that investors will get distinctive Which made the demand increase dramatically