home Property Turkey Blog Investing in Turkey’s Real Estate: The Opportunity of a Decade

Investing in Turkey’s Real Estate: The Opportunity of a Decade

By: Cameron Deggin

Turkey is on the brink of a massive economic transformation, making now the perfect time for investors to get into the real estate market. With the government’s austerity measures set to ease by the end of 2024, we’re poised to see a liquidity surge into tangible assets like real estate. While short-term investments in bonds and stocks are the flavour of the moment, the smart money knows that real estate will soon take the lead. Investors who act now—while the market is bottoming out—are going to reap the highest rewards.

 

2025: The Year Real Estate Booms

Interest rates are forecast to start dropping in late 2024, which will pull capital out of speculative instruments and pour it into real estate. This shift will begin around April 2025, with real estate prices expected to rise at an accelerating pace through 2026 and beyond. By mid-2025, we expect to see the first major surge in property prices. For those looking for high returns, the time to secure a good deal is now, not later.

Istanbul property

 

Economic Growth and Real Estate: A Strong Correlation

Turkey is set to double its GDP to $2 trillion by 2028, with per capita income increasing from $15,000 to nearly $22,000. As a nation, Turkey is not just growing; it’s transforming. This economic growth will inevitably push up property prices, especially as urban transformation projects in cities like Istanbul revitalise infrastructure and modernise living standards.

Turkey statistics

While these numbers are impressive, smart investors understand that the real growth story is in the real estate sector, particularly in two key areas: affordable city centres and branded South Coast resorts.

 

Take advantage now: Where to invest in Turkey

 

1. Affordable City Centres: The Ideal Investment for High Growth

In Istanbul, the heartbeat of Turkey’s economy, there’s a growing demand for affordable, centrally located properties. With Turkey’s population boasting an average age under 32, we’re looking at a young, vibrant demographic that’s seeking compact, modern homes close to work, entertainment, and nightlife. Unlike aging populations in Western Europe, Japan, or China, the focus in Turkey is on younger singles or small families who are willing to sacrifice space for location.

Adding to this dynamic is the fact that many of Istanbul’s central buildings were constructed before 2002 and aren’t earthquake compliant. This creates a significant gap in the market for modern, secure, and compliant homes, putting further upward pressure on prices.

Airbnb Opportunity: Istanbul’s city centre is also a hotbed for short-term rentals, thanks to new regulations that restrict a majority of properties from entering the Airbnb market. If you secure a property today with Airbnb suitability, expect rental yields of up to 10% annually—with substantial capital growth projected in the next 3-5 years.

One prime example of investment opportunities in this segment is our Sense Brand, particularly Sense Levent and Sense Sisli. These developments were designed with the modern buyer in mind: centrally located, earthquake-compliant, and ideal for both long-term living and short-term lettings.

Sense Levent

 

Sense Levent: Luxury Residences in Istanbul

Experience affordable luxury at Sense Levent. These properties, created in collaboration with Designer Turkey and renowned architect Saffet Kaya, offer significant investment potential and are approved for Airbnb. Situated in Kagithane, they are also a great option for those seeking Turkish Citizenship.

Explore Sense Levent Properties

 

Sense Sisli: Affordable Apartments in Central Istanbul

Invest in the vibrant Bomonti neighbourhood with Sense Sisli apartments in Istanbul city centre. Located near Nisantasi, Cevahir Mall, and Sisli Metro, these properties offer up to 10% annual rental returns through Airbnb and are suitable for Turkish Citizenship by Investment.

Explore Sense Sisli Properties

 

2. Branded South Coast Resorts: The Mediterranean’s Hidden Gem

If your investment goals are more lifestyle-driven or focused on resort properties, look no further than Turkey’s South Coast, particularly the Aegean region opposite the Greek Islands. The area is quickly gaining a reputation as one of the Mediterranean’s last hidden gems, ideal for boating, yachting, and luxurious seaside living. It boasts dramatic scenery, blue flag beaches, and a more European lifestyle, making it a prime choice for both domestic and international buyers.

At the heart of this coastal renaissance is Bodrum, Turkey’s premier resort town. Known for its luxurious marina facilities and as a playground for the world’s elite, Bodrum is home to brands like Bvlgari, Armani, and Four Seasons, reinforcing its status as one of the Mediterranean’s most exclusive destinations. Property values here are secure, and they consistently rise thanks to the area’s growing global reputation.

For those seeking the best of Bodrum, look no further than our U House and L House villas—both exceptional examples of the luxury living available in this region. These properties offer not only stunning architecture and high-end finishes but also a level of exclusivity that is increasingly sought after by high-net-worth individuals worldwide.

Bodrum property

 

U House: Luxury Villa in Gumusluk, Bodrum

Own a one-of-a-kind villa in Gumusluk, Bodrum. This beautifully designed home, created in partnership with architect Saffet Kaya, blends traditional and modern architecture. The property wraps elegantly around a peaceful swimming pool and lush garden, offering a perfect retreat where tranquillity meets sophistication.

Explore U House Bodrum Villa

U House Bodrum

 

L House: Panoramic Villa overlooking Gumusluk Bay

Perched above Gumusluk Bay with breath-taking views of the Greek Islands and sea, our Bodrum L House offers a striking panoramic experience. Featuring innovative architecture and a unique glass design throughout, this villa is the result of an exclusive collaboration with Saffet Kaya.

Explore L House Bodrum Villa

L House Bodrum

 

3. Real Estate Investment Funds in Turkey

A Real Estate Investment Fund (REIF) in Turkey allows investors to pool their capital into a diverse portfolio of real estate assets. These funds are professionally managed and are licensed by the Turkish Government, with oversight from the Capital Markets Board, ensuring investor protection and transparency.

By investing in a REIF, individuals can access a wide range of properties without needing large amounts of capital or having to manage the properties themselves. This diversified hands-off approach reduces individual risk and offers exposure to various real estate markets.

Supported by the Turkish government, REIFs attract institutional investors, particularly in growth sectors like energy and technology. Our fund requires a minimum investment of $100,000 and has delivered returns of over 20% annually in USD. Additionally, it is tax-exempt, offering potential savings of up to 30%.

 

Conclusion: Now is the Time to Invest

With the Turkish economy set to boom, liquidity poised to flood back into the market by mid-2025, and with urban transformation projects pushing real estate prices higher, the time to invest is now. Whether you’re looking at the vibrant, affordable city centres of Istanbul or the luxurious branded resorts along the South Coast, Turkey’s real estate market offers an unparalleled opportunity for growth over the next 5-10 years. Secure your position today for maximum returns tomorrow. The wave is coming—ride it to the top.

"I anticipate the next major growth phase in Turkey's real estate market to begin around mid-to-late 2025, with early indicators of rising demand appearing as early as the first quarter of 2025. I project the market to reach its next peak between 2027-2028, with an anticipated average increase of 50% in USD terms, and even higher gains in specific segments of Istanbul, particularly in affordable central districts."

Cameron Deggin

Cameron Deggin

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