How the real estate market in Turkey has changed in 2019
Are the forecasts for 2019 for the real estate market in Turkey coming accurate?
Over the past year, the Turkish real estate market has gained momentum as foreigners choose Turkey for several reasons, namely excellent apartment prices, the low cost of the lira itself, and the accelerated citizenship program. While the world's eyes are still on the Turkish economy, many wonder if Turkish property sales will rebound to an all-time high in 2019.
Indeed, the trend has continued throughout 2019; here are the stats for 2018. Last year, although domestic sales slowed due to higher interest rates, sales to foreigners rose by 78% per annum. About 40,000 houses have been sold to foreigners from all over the world. Will 2019 be able to match these indicators? We think so for several reasons.
1) Turkish lira: the cheapest currency in the world
Deutsche Bank has called the Turkish lira “the cheapest currency in the world,” while German banking and financial firm Commerzbank predicts its status will not change in 2019. Nomura PLC's Inan Demir, whom Bloomberg says is the top Turkish lira analyst, also predicts he won't get stronger in 2019. While this is not good for some industries, the Turkish tourism and real estate sector benefits as foreigners seek to benefit, which is natural.
2) Turkish citizenship by investment
Another boost came in September when the Turkish government cut the real estate investment rate for Turkish citizenship from $1 million to just $250,000. According to the Daily Hurriyet newspaper, 250 buyers applied in the next four months and were satisfied with these requirements. Experts predict a large number of applications during 2019.
3) Popular places in Turkey to buy property
We see no change in the favorite places where foreigners buy property. Istanbul, an economic, educational, and tourist center, will continue to rank first. In the expanding city, especially on the European side, there are several new and custom developments. On the market, you can find a large selection of neighborhoods, as well as a pricing policy in which both budget buyers and buyers of luxury apartments can feel free.
The Antalya region, including the city center and resorts such as Alanya, Side, Belek, Kas, Kalkan, and Kemer, will continue to dominate in second place since European, British, and Middle Eastern buyers have long chosen these places. Covering a large region on the Mediterranean coast, many parts of Antalya attract budget buyers.
In 2019, we predicted a growing trend in Izmir, an alternative to the bustling city of Istanbul. Including central and coastal resorts such as Alacati, Foka, and Cesme, there are increasing requests from foreigners and retired Turks who want to move from Istanbul.
4) Trust
While foreigners invest in Turkish real estate, there is no reason to believe they are taking risks. Buyers want to deal with established agencies that have a proven track record. People need professionals who are committed to protecting their clients' investments. When cooperating with Basicapartmen, customers feel comfortable and confident in the safety of their investments.
For all these reasons, it is clear that Turkey is not unreasonably aiming to become a global brand in the real estate sector, and it is doing very well in 2019. And we think this trend will only grow.
