Turkey could double its foreign property sales
A real estate expert says that Turkey has the potential to double the sales of properties to foreign buyers.
Haluk Sur, head of real estate consultancy Cushman & Wakefield Turkey, said that the 25,000 property sales made to foreign buyers each year is far below potential, adding that 60,000 annual sales is very possible.
Sur says the key to upping the number of foreign buyers is developing policies to the right kind of buyer.
“Turkey needs to develop solid policies to lure foreign buyers who want to use their potential homes in Turkey for several weeks or months, rather than others who buy many properties just to sell on later or rent out,” Sur told the Hurriyet Daily News.
Although the goal of 60,000 properties might seem ambitious, Sur said that there are “no obstacles” preventing the goal. “The country must, however, act very carefully on the road to achieving this goal … The sector needs to focus on selling properties to foreigners who will use them with their families or for themselves, rather than potential buyers who make huge volumes of acquisitions in order to create big price fluctuations in the market,” he said.
A number of foreign buyers will pay $6000 for one square metre of property - and then sell it for $8000, creating a balloon effect in the sector, Sur explained.
An over-reliance on the property sector in Istanbul is also problematic, and work needs to be done to improve infrastructure in other areas to entice buyers to buy there.. “It is not right to concentrate on Istanbul too much for the sector. Other areas of attraction must be created. Actually, some cities elsewhere in the country have been developing rapidly, such as Bursa in the northwest, Antalya on the Mediterranean, Izmir on the Aegean, etc. … There are other areas that have a huge growth potential, including Gaziantep in the southeast or Kayseri in Central Anatolia. With the required infrastructure projects and employment opportunities, more people will opt to live in these cities,” he said.
“Acquisitions should spread to a wider geographical location at different price scales. When such a market is created, Turkey will be a very attractive market for foreigners,” he said.
Due to a shortage in properties, and rising demand from local and foreign buyers, the construction sector has been one of the chief drivers of Turkey’s growth in recent years.
Turkish cities with growth potential
Always at the top of prospective buyers’ lists, it might surprise you to know that there is still some movement to be found in Istanbul, and you don’t need to be Donald Trump to buy there (although it does help). Urban regeneration in Istanbul has opened up previously undesirable areas to outside investment by replacing older - and in many cases illegal - buildings with new developments. Accompanying the new properties is improved infrastructure. The result? Young Istanbul professionals and families are moving into these previously downtrodden areas and breathing new life into them. Prices are beginning the inevitable upward climb, attracting more investment and greater prosperity for Turkey’s largest city.
Antalya City is the Mediterranean’s answer to Istanbul. This dynamic centre has transformed itself from a sleepy town to a large international hub, home to more than two million people. Its infrastructure - fed by an airport that’s one of the world’s busiest - extends to the whole region, from tranquil Kemer to sunny Side.
Antalya property has been one of Turkey’s success stories over the last decade. Families are moving to Antalya and its surrounding towns, due to the lifestyle and the excellent facilities such as hospitals, schools and leisure centres.
As the city has grown, thousands of professionals have gravitated to the business hub for work. With money in their pockets, these upwardly mobile workers are clamouring for rental property. Investors are buying Antalya apartments on stylish Konyaalti Beach and renting them long-term to these young city-dwellers. Konyaalti property is also rising steadily in value as due to its geography - sandwiched between sea and mountain - building space is limited, while demand is high.
Turkey’s third largest city is located on the Aegean and is a hub of industry and trade. In recent years it’s also become a centre for education, with many good universities becoming established here. This is due to the city’s young, dynamic population - in fact, it’s one of the most youthful cities in the country. This educated and liberal population is driving the city’s economy, and money is being channelled into infrastructure and developing its tourist sector.
The healthy economy has led to a housing boom, and like Antalya, rising numbers of young workers are moving to the city seeking rental property, leading to favourable rental and investment conditions for foreign buyers.