Story Behind Growth Of Turkeys Real EstateTurkey has seen the fastest recovery of real estate in Europe after Spain and Italy. Property values are booming due to the rising influx of tourists from all around the world who are increasingly investing in seaside properties. Real estate conglomerates who invest in properties to develop them into exclusive holiday destinations have purchased land in the region as Turkey’s connectivity via air to different corners of the world is pretty easy. As per a recent study conducted by Spot Blue International, the interest for acquiring real estate by foreign buyers has gained significantly in the first two quarters of 2014.
Nearly 60 percent of the recently purchased property amounting to 8507 units has been bought by foreign buyers which have largely been in developing tourist spots. According to sales figures released by the Statistical Institute of Turkey, Istanbul also recorded 150 percent increase in real estate deals in 2014. Though investors are generally interested in developing properties around locations like Antalya, Kalkan and Belek due to tourist interest, properties in other locations around Turkey’s large cities are also in high demand.
Total property sales value:
As per government records, the total purchase of real estate in Turkey by foreign buyers in 2014 amounts to $1.26 billion which is around $893 million more than the entire year of 2013. So, the prices of housing units has also grown by 12 percent since 2013 leading to total purchases of 600 units in Istanbul followed by sale of 586 units in Antalya and 108 units in Aydin. Reports state that investors from the GCC area have contributed nearly 80 percent in this growth leading to growth in demand for office property and residential units.
Low interest rates drive real estate growth
According to Turkey’s Prime Minister Mr Erdogan, the policy of zero interest is great for a nation’s economy based on Islamic financial policy of Sharia. They are aiming to reduce real interest over a period of time so public income would grow through hard work instead of through interest. This is a long term plan to grow Turkey’s economy up to a level of the world’s largest economies within 15 years through public and private participation.
Government policy drives growth:
To drive growth in real estate sector, government has also invested in developing infrastructure in key cities of tourist and historical interest like Istanbul. Projects like Marmaray rail tunnel and river-bridge over Bosphorus along with another airport and underground tunnel have been carried out with the help of private investors. Between 2013 and now the nation has received nearly $12.686 billion of investment from foreign investors.
Two of the largest international investors in Turkey’s real estate are Russia and the Middle-East and nearly 8-9 flights fly between both the nations on a daily basis. With the nation becoming sixth most popular destination in Europe since 2013 it now welcomes almost 1000 visitors on a daily basis into Istanbul itself. Since early 2014, visitors to Turkey have grown by 25 percent and the government is also encouraging foreign investors to buy property and rent it to holidaymakers.