TURKEY HOME: Why you should buy your property now
In this article titled Turkey Home, we will discuss what the year of 2020 has in store for Turkish economy and how it will effect the real estate market. This article will bring clarity to the following questions:
- Why is it an excellent idea to invest in Turkey’s real estate market?
- What are some pros about owning a property in Turkey now?
- What to expect in the following years in terms of GDP and interest rates?
- What is the update on ‘Turkish citizenship by investment program’?
- What are some social motivations to own a Turkey home?
Massive growth expected
The country showed a noticeable economic growth in the last 3 years despite all setbacks. The economy has gone through a contraction with the devaluation of Turkish lira (-28%) in 2018. Therefore, the interest rate went up in order to stabilize the currency value.
However, the high interest rates lead to a period of slow growth. The expected IMF growth was -2% for 2019. But it managed to grow 1%. The numbers were much higher than what was initially foreseen. This is when the Turkish economy started to bounce back.
Strong Gross Domestic Product (GDP)
Only 22 months ago there was 28% devaluation in currency. Moving from a series of unfortunate setbacks, the GDP growth is now expected to reach 3%, which is twice as strong as the European Union average. This doesn’t come as a surprise that the growth percentage is more than twice as strong as the United States of America.
Suffice to say that Turkey is no longer an emerging economy but a developed one with solid foundations. Being a production economy, Turkey is one of the biggest exporters of value added goods such as motor vehicles, agriculture and clothing.
Now, let’s take a look how this economic ups and downs effected the real estate market in Turkey.
Mortgage rate is expected to decrease
The domestic market hit the wall as a result of swiftly increasing interest rate in 2019. 2018’s economic chaos resulted in interest rate rising from 8% to 25%. This naturally lead to a visible decrease of Turkish property buyers or investors. However, the crises for Turkish people worked into the advantage of oversea clients. Many foreigners took advantage of this period and found excellent value for their money. As the saying goes: when a country is having it rough, in other words going through a crisis like Turkey, that is when you want to invest in real estate.
Turkish buyers are coming back to market
When one looks closely, one will see that the opening rate of 2019 was 25%. But the year was closed with 13% mortgage interest rate. The number is expected to drop even more throughout 2020, which means the domestic market is becoming alive again. This will translate into less opportunities for foreigners.
The citizenship via property investment program will sure be effected by it. The minimum amount is expected to increase from 250,000$ to 500,000$. There is a high chance it will be abolished completely in 5 years time. Now it is a great time to buy property in Turkey and browsing Turkey home listings.
If you don’t know already, the minimum amount for citizenship by investment program used to be 1,000,000$. The government has decreased it to 250,000$. It will most definitely jump back to 500,000$. If this is something that interests you, we urge you to act upon Turkey home dream plan as soon as possible.
Other encouraging factors
When we talk about social motivations, we rather mean more subjective factors that might encourage buyers to choose Turkey as the destination for their investments. These are:
- Sunny weather
- Solid infrastructure
- High standard of living
- Lower cost of living and housing
- Developed heathcare system
- Modern education system
- International demographic profile
- Laidback lifestyle
We will surely and shortly provide more details on them in another article.
Side note: Southern West of Turkey such as Alanya, Bodrum, Fethiye are some of the prominent places international buyers prefer. Overall warm weather, the turquoise coast is very inviting for Brits, Middle Easterns, Europeans and Russians. More and more British people are considering Turkey as a top investment destination nowadays due to Brexit. The number of Chinese buyers are also increasing every month although there was no demand 3 to 4 years ago.
Turkey is a developed economy with strong foundations. The number of investors are increasing by the day. This is effecting the real estate sector as they are inter-bedded into one another. Hence the foreign buyers should act faster in their decision making process in order to maximize their short and long term profit. High value for money is guaranteed. The cost of living is lower than that in EU or USA thus the cost of housing.
To know more about Turkey home market visit buyer guide, for more details click here
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