Real Estate in Turkey: Will It Appreciate and What Are the Trends in 2023?

Turkey - a wonderful country with a developed economy, excellent living conditions, highly liquid real estate, and practically unlimited opportunities. In just 2022, Turkey issued more than 153,000 residence permits to Russians alone. It's not surprising that such a massive influx of new residents has generated increased demand for housing. Where there is demand, there is supply and price growth. Over the past year, the price tag for apartments in Turkey has doubled, and many experts predict further growth. Experts from the licensed agency GARANT.IT have analyzed the situation in the local real estate market and are ready to share their conclusions.

What Did 2022 Bring?

Before making forecasts for the current year of 2023, it is necessary to pay attention to the events of 2022. In the past year, the inflation rate exceeded 80%, and real estate prices rose by a record 200%. Such facts prompted many citizens to purchase real estate to preserve their personal funds. Despite the increased demand, the number of transactions among the local population in 2022 was 0.4% less than in 2021.

The situation was corrected by foreign investors, whose share in the market increased from 3.8% to 4.5%. However, after the influx of foreign residents, the government revised the conditions for granting citizenship, raising the investment threshold from $250,000 to $400,000. With the aim of obtaining a residence permit, dozens of districts where the share of foreign citizens exceeds 20% of the total population are now inaccessible.

Innovations and What to Expect?

Considering the increased demand for Turkish real estate among foreigners, it is quite likely to expect an increase in the investment threshold from $400,000 to $750,000. An increase in the investment threshold for obtaining a residence permit is also possible. So far, the authorities have not changed the threshold value of real estate for obtaining Turkish citizenship, but they have made adjustments to the conditions of acquisition. Starting from January 1, 2023, the requirement "1 object = 1 certificate" came into effect.

All transactions must be documented in a single contract, and real estate can only be purchased from Turkish citizens. It is worth remembering a number of political and economic events that affect the real estate market. It is expected that after the presidential elections in May, the permissible percentage of foreigners for one district will decrease from 20% to 10%.

Turkey Real Estate - What to Expect This Year?

A stable migration process, rapid development, and improvement of infrastructure in Turkey, and an increased level of global inflation - the combination of the above factors indicates that real estate prices will steadily rise.

Turkey is primarily a resort country. At the moment, an active phase of development can be observed. Entire districts are being improved in some cities, new infrastructure facilities are being built, luxury segment quarters, schools, kindergartens, and private clinics are opening.

The development of the tourism industry leads to the emergence of new villas, hotels, comfortable residential quarters. Modern apartments are characterized by increased functionality and comfort. Buying an apartment in such a complex is a profitable investment, as the high liquidity of Turkish apartments is known to every investor.

It is worth noting that one of the most valuable tourist resources is land. Given that the share of land suitable for construction is steadily decreasing, it can be confidently assumed that real estate prices will rise sharply. Analysts predict that by the end of 2023, the majority of properties will increase in price by at least 50% (depending on the class of property, location, and other factors).

The dynamics of real estate price growth are supported by the following factors:

• high demand for comfortable housing (for personal use and investment);
• an increase in the cost of construction;
• active development of city infrastructure.

Investing in Turkish real estate is not only an opportunity to obtain new citizenship and move to a developed country. It is a great chance to preserve and increase personal capital by investing it in a promising real estate object.

If you are planning to buy property in Turkey but do not know where to start, how to choose an object, how to deal with related issues of buying and selling, specialists from the international company GARANT. IN are ready to help. We only work with trusted developers and agencies - we will help you choose real estate that suits the client's goals and budget. We will organize a visit to the location or send detailed video footage from the property, help with the transaction, submit documents for citizenship, and solve other important tasks. With us, you don't need to waste precious time, energy, and resources.