Assessing the Turkish Real Estate Market—Is There Still Opportunity?

May 28, 2024

Delve into the current state of the Turkish real estate market with Altay Atasay. Despite economic challenges, there remain lucrative opportunities for savvy investors. Understand the dynamics at play, from rising housing costs and construction expenses to fluctuating rental markets, and how these factors can be navigated to capitalize on potential investment returns.

Current Challenges in the Turkish Real Estate Market

The Turkish property market faces significant challenges, including high housing prices and rental rates, spurred by increased interest rates and inflation, which have diminished real household incomes. Although nominal housing prices are rising, the real cost of property is effectively falling behind inflation rates, suggesting a decrease in real housing prices.

Opportunities Amid Economic Fluctuations

Recent months have seen rising construction costs due to the depreciation of the Turkish Lira against the US dollar, potentially leading to supply constraints. However, if demand for housing increases and interest rates are lowered to stimulate economic growth, it could alleviate the current market stagnation.

Economically, many are unable to afford home purchases, thus boosting demand for rentals and dramatically increasing rental costs. This scenario presents an opportunity for cash investors to acquire properties to rent out at profitable rates.

Market Insights and Investment Potential

Market experts note that previously, the ratio between the selling price and rental income in Istanbul and other parts of Turkey averaged around 300 times the monthly rent. Now, due to the sharp increase in rental rates, this ratio has shifted to between 200 and 250, suggesting that the payback period on investment through rental income has decreased from about 25 years to approximately 19-20 years. This indicates that the Turkish real estate market still holds appeal for foreign buyers.

With Altay Atasay, investors can navigate these complexities, leveraging deep market insights and strategic advice to make informed decisions that capitalize on the evolving Turkish real estate landscape.

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Altay Atasay: The Evolution of Turkish Citizenship Through Real Estate Investment

May 13, 2024

Explore the transformative journey of Turkish citizenship policies through real estate investment, from their inception to the present day. With Altay Atasay’s expertise, navigate the lucrative opportunities that Turkey’s evolving real estate market offers to foreign investors seeking both valuable assets and a pathway to citizenship.

Historical Shifts in Turkish Real Estate and Citizenship Laws

The Turkish real estate market opened to foreign buyers in 2002 under Prime Minister Erdogan, initially with certain restrictions that evolved significantly over the years. Initially, property purchases were limited to citizens from countries with reciprocal rights and confined to specific regions. By 2012, the reciprocity requirement was abolished, dramatically broadening the potential investor base, including citizens from China, Russia, India, and the Persian Gulf countries.

2017: A Milestone Year for Citizenship by Investment

In January 2017, as Erdogan prepared for a referendum to shift from a parliamentary to a presidential system, Turkey introduced citizenship by investment (CBI) with a minimum property investment of one million dollars. This initiative included several incentives, such as reduced property transfer costs and VAT exemptions for non-resident buyers, to attract foreign capital.

The Rise of Accessible Citizenship Options

September 2018 marked another significant liberalization, with the required investment threshold lowered from one million to $250,000. This policy adjustment made Turkish citizenship far more accessible to a broader array of investors and was complemented by options such as a fixed capital investment of $500,000 or depositing the same amount in a Turkish bank for three years.

2022 Onwards: Adjusting to Market Dynamics

By June 2022, the threshold for obtaining citizenship through property investment was raised to $400,000 in response to heightened foreign interest in the Turkish real estate market. This adjustment reflects the country’s strategic approach to balancing investor influx with economic stability.

With Altay Atasay, investors are well-equipped to leverage these opportunities, ensuring compliance with legal standards and maximizing the benefits of their investment in Turkish real estate.

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