Turkish Property – Should I buy My Dream Home Now?
Demand for Overseas Property is rising at a rate of knots, and this is being seen across many International Markets including Turkey. There’s several reasons for this, which we will be covering in more detail throughout this piece, but ultimately they all point to one thing – which is that there’s no better time to buy Property in Turkey.
Recovery from the Global Pandemic
The global pandemic hit the property market very hard, with a lot of properties being taken off the market, flights restricted and sale numbers crashing to all time low. Fast forward to the end of restrictions, and now with more flights, less testing and less curfew’s there’s more properties arriving onto the market as sellers want to capitalise, so the choice for buyers of Turkish property is good. Demand is actually so strong in some places however, that even though more sellers are listing their properties with agents, they are being sold within days. This in turn will mean that as demand outstrips supply, sellers will further capitalise on the positive market conditions, and prices will start to increase across the board. You can see just how popular property in Turkey has become by looking at the figures. 7363 foreigners bought villas or apartments in November of 2021 compared to just 4962 the year before.
‘WFH’ and Remote Working
One of the key changes to come out of the pandemic was how corporate companies were and are re-structuring and realising that their staff are more than capable of working from home or remote working. In many cases, staff are actually more efficient, as they have a better work/life balance, saving on high commuter fees and spending more time with their families. For Managers and CEO’s, long held fears of staff not actually working whilst they are at home are non-existent and an even better positive, is that the companies themselves can potentially cut costs within the business as they can downsize, or get rid of expensive office space altogether. For staff members, the upside of being a ‘digital nomad’ is that they can now move outside of the big cities, and move abroad in order to take advantage of a better work/life balance, whilst still being able to work for the same company as before.
New Construction / New Developments
As already discussed the global pandemic had a huge effect on the property market, and this was felt right across the Industry, even more so with Developers & New Constructions as they quite literally stopped building. Fast forward to today, and there’s now a lot more confidence in the market and developers have returned to sites as demand for New Build Property in Turkey returns to pre-pandemic levels. This is mostly being seen in Istanbul, where New Developments are being released on a daily basis, and foreign interest for New Builds is increasing substantially.
Cost of Living / Property Prices
Despite the recent situation with the Lira, if we look at things on more of a longer term basis (which is what you should do if you are interested to Buy Property in Turkey), then the cost of living is still very cheap here, with some estimations showing it’s around 72% cheaper than the UK. Food, clothes, entertainment, personal care and entertainment are lower, all of which are key components when it comes to looking at a foreign investment. Property throughout Turkey is also considerably lower, and even though prices could potentially creep up due to the increased demand, it’s still pretty amazing just what you can get for your money here.
Increased Investment in Infrastructure, Trade & Jobs
Increased spending by Turkey’s government has significantly increased over the last few years to improve infrastructure and services across Turkey, which include the new Istanbul Airport and The New Galataport both of which cost billions of dollars, but will bring a huge amount of increased revenue in return. There’s currently a high demand for Turkish Exports increasing by 33% in the first four months of last year, and there’s a wealth of companies that have moved their production outlets to Turkey in recent months which include the likes of Ikea, LPP, DW Reusables and Boehringer Ingelheim. Hugo Boss have also recently announced an expansion of their Izmir factory with 1000 new jobs, and Apple recently opened their largest store in Istanbul, which is their third outlet in Turkey. Further talks are also on-going to increase trade between Turkey and other countries such as the UK, where levels are already around $25bn in revenue, but more can be done.
Increased Tourism / Higher Rental Yields
Currently Turkey appears at the top of the list for the ‘Number One Tourist Spot in the Mediterranean’ and over the last 10 months of 2021 it actually attracted a total of 24.98 million visitors to its shores. In terms of revenue, the whole of last year resulted in around $25bn USD, but that’s nowhere Turkey’s annual high of $34.5bn pre-pandemic. The future however is extremely positive and early predictions are that Tourism will double up this year, plus the goal is that it will hit 50m by 2023! This is great if you are looking to buy property in Turkey for rental investment purposes or even if you just want to earn an extra income by letting out your property during the busy Summer months.
Citizenship by Investment
The Citizenship by Investment programme in Turkey is highly popular given that it’s actually one of the world’s cheapest and easiest Golden Visa routes with only a minimum of $250,000 needed and a commitment to keep the property for at least three years. It’s not just the applicant who will benefit from the programme either, with their spouse’s and their families also welcome.