Real Estates In Turkey
Turkey is one of the most promising real estate markets in Europe, and the importance of “location” is especially evident in this country. Turkey is strategically located at the crossroads between Europe, the Middle East and Central Asia, as it is home to nearly 78 million people, and it also provides great opportunities for real estate development and investment companies by bringing together the construction sector, large construction and increased commercial and industrial production.
Some key facts and figures in the Turkish real estate sector include the following:
- The real estate sector accounted for approximately 5% of GDP in the past decade. On the investment front, the inflow of foreign direct investment rose to $ 16.5 billion, and the real estate and construction sectors attracted $ 4.1 billion (24.8%) of the total FDI in 2015.
- Urban renewal and major projects dominate the agenda for the near future, especially in Istanbul. Some of the projects in the city include the Marmaray project, the Istanbul Canal, the third Bosphorus Bridge, and the third Istanbul Airport.
- It is estimated that about 6.7 million housing units will be demolished and rebuilt throughout the country over the next 20 years, which means an average of 334,000 units per year. About $ 15 billion in funding will be required each year for urban renewal projects. In all, a budget of $ 400 billion has been allocated to this initiative, with the private sector taking a leadership role.
- According to the “Knight Frank” index of international prices for homes, Turkey ranked first on the list of this index, which included 55 sites during the last quarter of 2015, in terms of the annual price growth index. Turkey has witnessed an annual increase of 18.4% and thus has emerged as the highest performing housing market in the world, ahead of New Zealand, Sweden and Australia.
- The number of homes sold in the Turkish real estate market reached 1289,320 units in 2015; likewise, real estate sales began to increase after the reciprocity law was abolished in 2012. In 2015, 22,830 homes were sold to foreigners in Turkey, representing an annual increase of 20.4%. With regard to house sales to foreigners, Istanbul is the best performing province with sales of 7493 in 2015, followed by Antalya with sales of 6072, Bursa with sales of 1501, then Yalova with sales of 1425.
- Licenses issued for building offices throughout Turkey increased by 27% and together amounted to 7 million square meters of additional planned office space in 2013. It is expected that the support of first-class office space will reach 6.5 million square meters by the end of 2017 with the completion of Projects like Istanbul Financial Center which according to expectations will provide job opportunities for 30,000 people.
- 368 shopping malls are operational in Turkey in addition to a total of huge leasable area of 10.89 million square meters. And it represents 108 shopping centers in Istanbul, with a total area of huge leasable area of 4 million square meters, 37% of the total area of leasable malls in Turkey
- According to the JLL Index to measure the attractiveness of international markets to retail companies, Istanbul ranks seventh among the most attractive markets in Europe and comes after London, Paris, Moscow, Milan, Madrid and Rome
- Despite growth in recent years, Turkey is still below the average in the total leasable area per person, compared to the European average. This indicates the potential for retail growth in Turkey
- By the end of 2015, there were 13,615 registered properties for residency. 9188 of these establishments are licensed by the competent municipalities, while the remaining 4427 establishments obtain tourist operating licenses. The combined total clinical capacity of these establishments exceeds 1,250,000 beds, although there is still a gap between supply and demand, especially in Istanbul.
- Currently there are 281 projects under construction, which will add 74,130 beds that are highly needed due to the shortage of supply in Turkey.