Thinking about buying or selling property in Turkey? For the second quarter in succession Turkey’s property market has grown by more than 30%. Here’s why it’s proving to be such a stellar performer on the world stage.
Despite the pandemic, the global property market is booming, and the star attraction is Turkey. That’s the news according to the latest Knight Frank Property Index. With the gateway to Asia proving to be the world’s fastest-growing property market, foreign investors from Russia, Iran, Europe, and China are flooding into the country. So, what makes it so appealing?
Global property boom
First, let’s look at the stats. According to the Index, Turkey tops the list of fastest-growing property markets registering more than 30% growth, year on year, for the first quarter of 2022. It follows from a similarly impressive performance in the final quarter of 2021.
Overall, the world’s property market is in rude health growing at 7.3%. 13 countries registered double-digit growth with Turkey proving to be the star performer. However, it wasn’t all good news with traditionally vibrant property markets such as Spain showing somewhat sluggish performance.
Much of it is down to people reassessing their options during the pandemic. The crisis made people rethink their priorities. Small flats in the center of a city were out with people looking for larger properties, in the country, ideally with their own little patch of green.
As Kate Everett-Allen, head of international residential research at Knight Frank said:
“The demands on the home have increased in lockdowns and homeowners have reflected on where and how they want to live, prompting many to relocate or purchase a second home.”
That has prompted many people to go looking for property in popular holiday destinations and Turkey fits the bill perfectly. It offers a heady mix of a healthy tourist market, rising demand, a warm climate, and a great quality of life, while still being relatively affordable compared to other similar destinations.
Meanwhile, it has been rebounding from a tough period – marred by political instability – which saw the market almost flatten out going into 2019. With things looking up, a favorable regulatory environment coupled with a successful vaccine rollout, the scene is set fair for growth once again.
Foreign investors are answering the call. Top of the list is Iranian investors who bought 817 apartments and holiday villas between January and February. Nearby countries such as Iraq, Afghanistan, and Kazakhstan all had a heavy supply with Russians representing the third most common country.
Part of the reason could be a welcoming regime. The Government has promised a Turkish passport to anyone who invests more than $250 in Turkish property. The lure of a passport is particularly appealing to investors from Iran who prize the prospect of citizenship highly. Previously they would have been looking at countries such as Canada and the UK. However, both these countries have made it more difficult for Iranians to gain residency in recent years which has encouraged them to seek alternative options.
A market set for growth
Most importantly of all, this is a market with tremendous growth prospects. While the pandemic has dampened the market here – as it has everywhere else – the fundamental data is positive.
The economy is picking up, and demand for holidays is likely to expand dramatically as travel restrictions lift. More people are looking for second homes in popular holiday spots. Those with sufficient capital are weighing up their options creating a sea of opportunity for enterprising investors.
Demographic changes point to sustained demand. The population is growing and becoming more urban. Tourism is on the up with Turkey emerging as one of the most popular destinations for people all over the world. Its location, bordering Europe and Asia, gives it a unique feel and puts it in a prime position to capitalize on demand from both continents.
Overall, then, there is no reason to think the recent growth in Turkey can’t be sustained. The fundamental building blocks are all in place. Whether buying to start a new life, for a holiday home, or as an investment, Turkey’s welcoming environment is great news for foreign overseas property buyers.