The Turkish real estate sector, offering ever-greater opportunities for investors every year, has come to prominence especially in the last decade, on the back of economic and political developments.
The entry of global actors into the real estate market is increasing the competitiveness of the sector, while massive mergers and acquisitions taking place help its expansion and overall growth rates. Different surveys and publications such as the “Emerging Trends in Real Estate Europe”, prepared jointly by PricewaterhouseCoopers (PWC) and the Urban Land Institute, show how global and local interest in the Turkish real estate sector has increased.
As Turkey progresses along the road to EU membership, the essential legislative reforms introduced have made investing in the real estate market even easier and more profitable. The amendments to the Land Registry Law, the Draft Mortgage Law and the redrafting of tax laws are also designed to improve the competitiveness of the Turkish real estate sector.
The real estate sector in Turkey also has great prospects thanks to demographic factors parallel to improving economic figures. The demand for offices and logistical and industrial areas is expected to increase in line with the increasing number of global and local companies.
- Stable, institutionalized, internationalized sector thanks to predictable inflation rates and consistent prices.
- Dematerialization, transparency, auditing, high quality and standards, institutionalization and statistical information in line with the ongoing EU accession process.
- 61 percent of Turkey’s population is under the age of 34, while the country’s GDP was 742 billion USD in 2008. The share of housing loans in Turkey’s GDP is estimated to hit 15 percent in 2015.
- 26.5 million tourists visited Turkey in 2008, making Turkey the 7th most visited holiday destination in the world. These show the great potential of the Turkish real estate sector as regards the tourism industry.
- Turkey, as a regional hub providing easy access to 1.5 billion consumers in Europe, the CIS, and as an energy corridor and terminal between Europe, Central Asia and the Middle East, creates more and more enterprises each year within its borders.
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Sound banking system
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Recently introduced mortgage system
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Strong construction firms with a good reputation worldwide
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ULI ranked Turkey the leading and the third investment market in Europe in 2008 and 2009, respectively |
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High ratio of unlicensed and old housing; ineligible for mortgage credit
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Land area is limited and expensive, particularly in Istanbul
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- Housing supply is less than housing demand, indicating growth potential
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Expected increase in quality of housing in compliance with the earthquake regulations
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Increasing need for residences and plaza buildings
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Restructuring process in the cities leading to slum houses being demolished and replaced by quality housing |
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High risk of earthquakes in Turkey, particularly in the Marmara region, which covers Istanbul and the leading industrial zones of Turkey
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Traditional volatility of the sector
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