When you think about foreign investment, Turkey should be on your radar. Right now the real estate market is booming, especially in Istanbul, which is the 14th most popular city for international investors. Marking it as a significant location for real estate investors, Istanbul hosted Cityscape earlier this year, one of the most prominent real estate investment showcases, drawing in over 40,000 people. Many investors, developers, and other professionals in the investment arena attended to discuss the current situation with international real estate investment. Also, Central Bank data reports that housing prices in Turkey have soared 17.5% this year in comparison to rates in 2015. Istanbul, in particular, has experienced even greater growth, with house prices increasing by 22%. This increase can be attributed to two factors: more demand from foreign investors and the influx of Syrian refugees who need a place to live, driving up demand for available housing.
Opportunities will Continue to Increase
These statistics place Turkey in first place in terms of international housing prices. Last year, Knight Frank’s Global House Price Index 2015 also named Turkey as the country with the quickest housing price growth, outranking 54 other countries. These numbers are surprising in light of the current situation of political and economic instability in Turkey, but Knight Frank asserts that regardless of the political forecast, Turkey’s location solidifies its value. It is where East meets West: a junction where investors from abroad and the middle east can safely invest in a place where there will always be buyer and tenant demand. Hamad Bin Ali Al-Hedfa, the CEO of Mazaya Qatar and runner of Qatar’s largest real estate investment companies, also asserts that “opportunities in the Turkish market will continue in the middle and long terms”.
Who is Investing?
Right now, the majority of Turkey’s foreign investors come from the middle east, especially from countries like Saudi Arabia, Iraq, and Kuwait. The Turkish government reports that among these investors, Iraqis are the most prevalent, making up over 18% of their foreign investors. Saudi Arabia follows with 11.8%, Kuwait 9.2%, Russia 8.8%, and Iran tails this group with 2.6%. With the recent arrival of over 3 million Syrian refugees, the demand for rent and available housing has created a great opportunity for investors to cash in by becoming landlords. Prices for rent have also increased with the demand, making profits greater for investors as a whole.
Why Knowledgeable Agents are Key to this Process
Agents need to be educated in the industry and know how to negotiate the best value for their clients. They need to know what is in demand, what are the hottest areas, and where values will rise. For example, many investments are happening with properties close to the coastline or near airports. High-end development usually occurs on the European side of the Bosphorus, in which the districts Nisantasi and Etiler are extremely popular to foreign investors. Agents need to know what kind of property is worth the investment and will lead to financial gain and which ones will be bought at a loss. A great agent needs to have an arsenal of knowledge only a real estate education can give them in order to guide their clients to the best investment options. A solid instruction, certified with a Global Real Estate Licence, gives an agent the credibility and knowledge necessary to compete in this fast-paced investment market.
A Bright Future for Housing and Rental Investment
With the current immigration trends in Turkey, there will be a strong demand for available housing and rentals for years to come. Also, according to the economist Burak Kanli, many people from Iran and Iraq are also drawn to Turkey because of the greater opportunities and better schools. Desiring a better life for their children, they relocate to Turkey and for that great move, they will need somewhere to stay. Foreign investors who provide housing for Syrian refugees and immigrants from other middle eastern countries will reap constant rewards financially due to this steady demand.
Whether an investor purchases housing or land, owning a piece of investment property in Turkey is projected to turn into profits as the need for more housing and development steadily rises. Getting a Global Real Estate Licence also invites real estate agents into this season of profit, taking part in an exciting time of unique opportunity.