Turkish and especially Istanbul real estate market is continuing to grow year by year in very rapid steps; the Turkish construction industry increased at a compound annual growth rate (CAGR) of 12.60% during the period of 2009–2017. 2009-2013 at 5.83%, and during the period of 2013–2017 at 8.07 %.
Last year, while domestic sales slowed down, sales to foreigners increased incredibly, about 40,000 homes were sold to nationalities from all over the world. The industry is expected to continue to grow over the forecast period (2019–2022), for reasons like Rapid urbanization and demographic changes. A report prepared by PWC “Real Estate 2020: Building the future” predicts that the international stock of real estate investment will rise by more than 55% to around $45.3 trillion by 2020, from a 2012 total of $29.0 trillion and will expand again by a similar proportion by 2030.
Let’s take a look some factors driving the real estate sector and foreigner demand in 2019:
Turkish Citizenship by Investment in Turkey
On 19/09/2018 the Turkish government declared new regulation; foreign investor can get citizenship in Turkey by investing $250,000 instead of $1M. investor have the right to get citizenship by buying a property with value equals to $250,000 must be paid in cash and held for 3 years. According to “The Daily Hurriyet” Newspaper, in the next four months, 250 buyers applied, having met requirements. With the pattern still in its first year, experts predict high numbers of applications throughout 2019.
Strong Development In Infrastructure:
Global Data expects that real estate sector will grow to 12.19% in nominal terms, driven by government’s focus on transport infrastructure under the Vision 2023. the government plans to invest TRY1.5 trillion (US$300 billion) on transport infrastructure across the country by 2023.
The Third International Airport In Istanbul:
The largest airport in Europe has opened on October 2018 with an annual capability of 200 million and the first phase has already started to work, which will serve 90 million passengers yearly. The whole airport is predictable to become in progress in 2023.
International Finance Center Project:
The structure of the Istanbul International Finance Center is set for completion in 2016. The project began in 2012 and will put together a number of key financial institutions under one framework and will provide a shopping center, living areas and a congress center. The budget of the project is around USD 2 billion.
Last Updated: 28.3.2019 13:54:29