Is buying a property in Turkey in 2019 a good decision?
This question comes to mind whenever a foreigner is considering buying a property in Turkey.
What are the factors that play a role in determining the prices of the Turkish real estate market?
And the reasons that make buying a property in turkey in 2019 a sound decision?
The factors determining property prices in the Turkish properties’ prices:
In 2018 the Turkish lira has lost almost 30% of its value, encouraging foreign investors to buy properties in Turkey.
In addition to the new laws issued to encourage foreign investors to delve into the Turkish real estate market.
The new laws facilitate buying a property in Turkey in 2019 and help to make the process less complicated and risk-free for foreign investors.
Interest Rate and its effect on buying a property in Turkey in 2019
- In September 2018 the central bank of Turkey raised interest rates to 24% in order to stop the deteriorating of the Turkish lira against foreign currencies.
This decision drove capital owners and businessmen to invest in Bank deposits with no margins of risks and guaranteed profit. This led to a decrease in sales in the Turkish real estate market, especially for the locals. The surplus in the Turkish real estate market drove construction companies to offer 20% discounts to encourage buyers to buy properties in Turkey.
- Towards the middle of 2019, the decision to drop interest rates started to affect the Turkish real estate market positively. The interest rate has dropped to 19.75% which lead investors, especially the locals, to start looking into the Turkish real estate market. It is highly anticipated for the prices of properties in Turkey to increase after the end of 2019 which makes it more logical to buy a property in Turkey in 2019. On the other hand, Turkish banks have decreased the interest rate on real estate loans to reach less than 1%.In other words, the numbers of local buyers for properties in Turkey are on the rise, causing an increase in the demand for properties and consequently the prices of properties in Turkey in general.
An overview of the Turkish real estate market to
The Turkish real estate market witnessed a leap in 2012 due to the new laws issued by the government then. Which allowed the citizens of 183 countries to buy properties in Turkey.
The new laws have also facilitated the process of buying properties in Turkey for foreigners.
This led to investment opportunities that caused an increase in the demand for Turkish properties.
Between the years 2012 and 2015 property sales in Turkey had increased fivefold.
This increase in the number of sold properties has led to an increase in property prices between 38% to 82% in the last 8 years.
The latest statistics showed that the number of sold properties in Turkey in the first half of 2019 was 505,796 properties.
- 8,903 properties in Istanbul.
- 4,093 in Antalya
- 1,111 in Ankara.
The Turkish real estate market is considered one of the strongest economic pillars of the Turkish economy.
As well as the steadiest which the previous economic crisis has proved during the last few years.
It is expected for it to continue achieving accelerating gains during the coming years.