Real estate has long been considered one of the traditional investment opportunities appreciated first and foremost for its perceived safety. Depending on the investor’s wishes real estate investment can yield results both short and long term.
Looking for more lucrative opportunities investors often turn their eyes abroad, which can be beneficial in more ways than one.
One of the property markets that has been attracting growing numbers of foreign investors is Turkey – and here is why.
Hot market
Housing sales to foreigners have maintained a strong upward trend in Turkey over the past decade.
Since 2013, house purchases by overseas buyers have soared nearly five-fold. In these past nine years the annual sales to foreigners dipped only twice: in 2016 in the wake of terrorist threats and a failed coup attempt, and in the pandemic-marred 2020. Barring these two crises-hit years, the market has only been growing exponentially.
The ongoing interest from overseas, the healthy construction sector and the rising prices seem to indicate that the hot Turkish property market has no intention of stopping its maintained growth any time soon.
Meanwhile, the real estate sector representatives continue working on promoting the Turkish market beyond its traditional investors from the Middle East and Russia, bringing in new demand.
Rich portfolio
To suit the demand of various investors, including locals, the Turkish market offers a rich variety of properties on multiple levels.
The robust and flexible market has grown to accommodate any investor according to their means and wishes.
In terms of budget, for instance, there are plenty of competitively priced options and just as many of luxurious ones and everything that comes in between – even in the most in-demand cities and areas. Same goes for the location or the purpose of the investment.
Turkey has developed into an all-in-one market that works to favor all kinds of investors.
Multi-purpose investment
Since housing is a tangible investment it can – and should – be purposefully used. An advantage of Turkey’s is that there are several options for that.
An obvious choice for real estate investors is, of course, leasing the property so the investment can start paying off right off the bat. House owners in Turkey can take advantage of both short and long term leasing (depending on location).
Turkey is a major tourist destination and one of the most visited countries in the world, therefore short term renting is a very real option. It can be done year-round in Istanbul, for example, or for nearly half a year on the country’s famed Aegean and Mediterranean coasts. In addition, modern means and technology make short term leasing a lot simpler than it used to be.
Long term option is obviously much more stable and hassle-free, while in Turkey (mostly in larger cities) there is also a fairly high demand for it that will continue rising. One glance at the country’s demographics can tell you why. The country’s population is quite young with median age of roughly 32.5 years – nearly 10 years younger that in the European Union, and is expected to peak only some time around 2060. This means the demand for housing, including for rent, is highly unlikely to cool any time soon, especially in big cities that continue to attract domestic migrants.
Leasing, however, is not the only option in Turkey. As said above Turkey is a tourist hotspot, so owning a place near a popular destination can be of personal use too. Many foreign investors treat their property in Turkey as a “vacation house,” taking full advantage of what the country offers its visitors.
Other investors also use their properties for their direct purpose and move to Turkey, a country beloved by expats for how welcoming it is.
Whatever you opt do, meanwhile, whether rent out the property or use it personally, being a part of the hot Turkish market, it will continue to rise in value, proving the investment sound.
