Real estate investments require economic stability. The political stability obtained as a result of the elections in 2015 will lead us to economic stability as well. This improvement shows us that Turkey will continue to attract real estate investments in near future.
Especially the wars and instability within the Arab world and Middle East render Turkey a safe harbour. The families of middle income level living in these countries prefer Turkey for the education of their children or health services. Religion and cultural closeness are the basic reasons for this choice. We have been hosting many investors in Turkey during the recent five years due to these reasons. Giving residence permits and citizenships to these investor families are advantages each.
Urban transformation is the most important subject during the last three years. Within the scope of urban transformation, 7 million houses and workplaces built during the past years will be renewed. Since Turkish people have such spending power, urban transformation income is very important for the investors. Turkish investors have noticed this opportunity and they constantly make investment into this area. This area is also very attractive for foreign investors. Especially for the investors who make their investments in long term durations such as 10 years, urban transformation is a very profitable.
Especially the population density of younger people keeps the need for more residential housing on the agenda. Every year, there is a need for 700.000 new housing units. The saving and using bank loan habits of Turkish people facilitate the financing of these new houses. This is why domestic and foreign construction companies continue making investments into this area. Since 1/5 of this need is in Istanbul, Istanbul is a major attraction for foreign investors. However the people who are planning to make investments to Istanbul should produce houses for middle and low income families. The need of the high income families for new housing is not as high as before. The foreign investors should also know that there are many opportunities outside Istanbul. Especially Bursa, Antalya and Izmir have interesting statistics. These cities should also be studied for investment.
The new trends in real estate develop towards the use of common areas within the real estate industry. The younger population has significant interest for building with rooms of general and joint use such as guest room, gym, cinema room. We recommend the new investors to investigate and study these areas.
As a result of the studies we made during the last two years, we can say that the urban transformation projects are predominantly are most intense area of study. We also had the opportunity to work on lawsuits such as development plans or building license cancellations. In order to ensure that such lawsuits diminish, the recommendations such as “building license being adopted as an earned right ” attract the attention from the government as well. We can state that we will make a legal arrangement in this regard soon. Especially the plans planned with reputable law firms eliminate any surprises. Investments take place under safer conditions under the predictions of the legal experts.
As a result, the regional developments and savings of Turkish people show that the real estate investments in Turkey will be profitable for the foreign and domestic investor.