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Unlocking Opportunities: Why Foreign Investors are Turning to Turkey's Property Market?


Friday 15 March 2024

Picture Unlocking Opportunities: Why Foreign Investors are Turning to Turkey's Property Market?

Amidst the complexities of rising house prices and fluctuating housing supply, Turkey's property market offers golden opportunities for foreign investors. With local families struggling to afford home ownership due to rising costs, it is an opportunity for international buyers to invest in a high-potential market.

Attractiveness of Turkey's Property Market for Foreign Investors

Turkey's strategic location between East and West, rich cultural heritage and dynamic economy make it an attractive destination for property investment. Despite property price increases due to inflation and demand outstripping supply, Turkey offers foreign investors significant advantages such as capital appreciation potential and a strong rental market, especially in major cities and tourist hotspots.

Comparative Advantage in the Global Market

In contrast to the high home ownership rates in some countries in Europe, Turkey's booming market indicates growing demand for residential and commercial property. With an annual housing requirement of around 800,000 units and a current home ownership rate of around 58%, there is huge market potential for both developers and investors. Furthermore, Turkey's competitive prices compared to European standards make it an attractive option for those looking to diversify their investment portfolios internationally.

Europe in Context: A Different Landscape

Countries such as Croatia, Hungary, Slovakia and Romania exhibit high home ownership rates, reflecting different economic conditions and housing policies. In contrast, Germany and some other countries are characterised by a stronger rental culture. This diversity in Europe further emphasises the unique position of the Turkish market, where the combination of rising prices and strong demand makes it a fertile ground for foreign investors.

Why Now is the Time to Invest in Turkey

For foreign investors, Turkey represents an untapped market with strong growth potential. The current economic situation and the government's incentives for foreign buyers, particularly citizenship by investment programmes, further enhance the attractiveness of this market. Investing in property in Turkey not only offers attractive returns, but also gives investors the opportunity to be part of a country on the cusp of a new era in the housing sector.

Turkey's real estate market offers unique opportunities for foreign investors with its growth potential, strategic location and favourable investment climate. Even in light of the challenges faced by local homebuyers, the dynamics of the market serve as a beacon for international capital and point to a promising horizon for those looking to explore the wealth of opportunities in Turkey. As the market continues to evolve, now is the best time for foreign investors to take their place in Turkey's promising property market.

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