Status of Real Estate Sector in Turkey

As strategic position in which Turkey is seen as one of the largest investment centers throughout the world. In addition to this, Turkey; It offers great opportunities for “real estate developers and investors” by combining its increasing strength in the construction sector with commercial and industrial production.

The importance of the housing sector increased with each passing day, the developments in Turkey by European countries continue to be followed step by step. Although there has been a decrease in the sales rates towards foreigners compared to last year since the beginning of 2017, Istanbul in particular continues to be considered as a developing market with a high potential.

Some important data belonging to Turkey’s real estate sector is as follows:

The real estate sector has constituted approximately 8.4% of the Gross Domestic Product in the last ten years. The total number of residential properties sold in the market of Turkey in 2018 reached 1.4 million units. With the abolition of the reciprocity law in 2012, real estate sales to foreigners started to increase. In just one month period in August 2020, Turkey has sold 3,893 residential units to foreigners. Istanbul and Antalya ranked first in housing sales to foreigners. On the investment side, the amount of foreign direct investment in the real estate and construction sectors in 2018 was recorded as USD 5.9 billion.

Urban transformation studies and mega projects, especially for Istanbul, direct the activities in the near future. The Urban Renewal and Transformation initiative will cover 7.5 million residences. The private sector contributes greatly to this initiative, which has a budget of USD 400 billion.

According to the Knight Frank Global House Price Index, Turkey, in the 3rd quarter of 2017 the annual price index increase has taken place # 6 out of 56 locations. Turkey, exhibiting the best performance in the world with annual prices, which rose 11.1%, has become one of the housing market.

The average annual increase in gross leasable area between 2010 and 2019 in the office market is quite good with 42%.

According to the JLL Cross Border Retail Attractiveness Index, Istanbul and Antalya are among the 10 most attractive markets in Europe in recent years.

Despite growth in recent years, Turkey is still behind in terms of total per capita average leasable area of ​​the European average. This indicates that the growth potential in the retail field continues.