Real Estate Investment in Turkey, Istanbul
2015-2020: 8.3 million real estate residences were sold throughout Turkey.
2015-2020: 189,000 real estate residences were sold to foreign investors in Turkey.
A quality office of 5.6 million m2 was built in Istanbul in 2020.
There are 13.6 million m2 of active leasable space in shopping centers throughout Turkey in 2020.
Turkey is one of the best real estate markets in Europe.
Turkey’s strategic location is at the crossroads of Europe, the Middle East and Central Asia. Turkey’s ever-growing construction sector, combined with commercial and industrial production, offers great opportunities for real estate investors.
In 2020, international direct investment inflow to Turkey reached 7.8 billion US dollars, real estate 4.4 billion US dollars and 57 percent of the total international direct investment.
Urban transformation and mega construction projects concentrated in Istanbul are the foreseeable future of real estate. Some of the projects in the city include the Eurasia Tunnel, Yavuz Sultan Selim Bridge, Marmaray and Istanbul Airport.
The Urban Renewal and Development initiative will cover 7.5 million residential units. With a large contribution from the private sector, the budget of the venture is USD 400 billion.
The total number of houses sold in the Turkish real estate market reached 1.5 million in 2020; Likewise, with the abolition of the reciprocity law in 2012, real estate sales to foreigners started to increase. In 2020, 40,812 houses were sold to foreigners in Turkey. Istanbul ranked first with 19,175 house sales in 2020, followed by Antalya with 7,735 house sales, Ankara with 2,746 house sales, and Bursa with 1,340 house sales.
Property Investment In Turkey
As of the end of 2020, the current Class A office stock in Istanbul exceeded 5.6 million square meters. More than 1.7 million square meters of office supply under construction, including the Istanbul International Finance Center (IIFC), is expected to reach approximately 7.4 million square meters of gross leasable area by the end of 2022.
Across Turkey, 447 shopping centers with 13.6 million m2 of gross rental area are actively operating. 130 shopping centers in Istanbul with a total gross rental area of 5.1 million m2 are 37 percent of the shopping centers with total rental space in Turkey.
Total logistics real estate stock in Kocaeli and Istanbul in 2020 is 10.2 million m2. In 2020, 318,000 m2 logistics leasing transactions were made, which has increased almost three times compared to the end of 2019.
Residential real estate prices throughout Turkey increased by 30.6% until the first quarter of 2021. The M2 was 4,054 TL (502 USD).
Turkey’s real estate investments are supported by local demand and offer very advantageous opportunities for foreign investors.
Property Investment In Istanbul
Housing sales increased by 11.5% throughout Turkey and especially in Istanbul. In Ankara, there was an increase of 18.6%.
The overall real estate market in Turkey is very attractively priced and the fast and profitable return on real estate investments continues to attract many investors.
This year, the housing market in Turkey is expected to grow and increase.
Investors’ increasing satisfaction with returns accelerates the movement in the market. Lux real estate, residence, apartment and some private mansions are offered for sale.
Best Choices to Invest for Foreign Investors
Some investors prefer Aegean and Mediterranean coasts because they demand a seaside lifestyle. Most of the Russian and German investors want the Antalya region. Most of the British preferred Aegean, Didim, they bought almost most of the properties in the region. Some investors prefer Istanbul, which is a more commercial metropolis.
Istanbul is the city where the most housing sales are made to foreigners. They prefer facilities with common areas, large estates and projects, real estate where social activities and entertainments are intense. One of the reasons for the preference of real estate investors is that they have conditional payment options suitable for projects. Return on investment is also attractive.