Offering ever-greater opportunities for investors every year, the Turkish real estate sector, has come to prominence in the last decade. The real estate market in Turkey is still promising despite the impact of the recent economic crisis and the global economic recession on the European and US real estate markets. According to TurkStat statistics the number of apartment units sold in Turkey in the second quarter of 2011 increased by 18 percent compared with the same period of 2010, which shows that the country has huge growth potential in the real estate sector even with reduction in demand and a downward trend in house prices have been observed all over Europe. While massive mergers and acquisitions taking place help its expansion and overall growth rates, the entry of global actors into the real estate market is increasing the competitiveness of the sector. Different surveys and publications such as the “Emerging Trends in Real Estate Europe”, prepared jointly by Pricewaterhouse Coopers (PWC) and the Urban Land Institute (ULI), show how global and local interest in the Turkish real estate sector has increased. Istanbul is ranked as the most attractive investment market in Europe in the “Existing Property Performance”, “New Property Acquisitions”, and “Development Prospects” categories, followed by Munich, Warsaw, Berlin, and Stockholm, according to the 2012 publication of the report. Moreover, according to a survey conducted by the Association of Foreign Investors in Real Estate (AFIRE), Turkey ranks as the 3rd most attractive real estate investment destination among the emerging countries in 2012.
Essential legislative reforms introduced have made investing in the real estate market even easier and more profitable as Turkey progresses along the road to EU membership. The amendments to the Land Registry Law, the Mortgage Law, and the redrafting of tax laws are also designed to improve the competitiveness of the Turkish real estate sector.
Thanks to demographic factors that are changing in parallel with improving economic figures, the real estate sector in Turkey has great prospects. The demand for offices, logistical and industrial areas is expected to increase along with the increasing number of global and local companies.
With its aim to become a financial centre, completed construction works are more visible in Istanbul. Major urban renewal and development projects, such as Third Bridge, Kanal Istanbul and the third airport, transport people in and around Istanbul. These have been some of the drivers that led to Istanbul’s housing market seeing a 64.8 percent rise between 2011 and 2015. The second region includes the cities of Gaziantep, Kilis and Adiyaman, which have experienced a 50.79 percent population increase over the same period due to housing demand from Syrian and Iraqi refugees.
Please refer to: http://www.kesikli.com/real-estate-turkey-annual-review/ for an annual review (2016) prepared for Financier Worldwide by Kesikli.