There are two different opinions about the buying and selling property trends in Turkey for this year.
On one hand, there is a lot of pessimism about Turkey as an overseas property destination, because of the war raging on its borders, the recent failed military coup and the spate of terrorist strikes in the country.
But on the other hand, Turkey still remains one of the hottest overseas property markets in the world, and has seen the fastest rise in home prices over the last few years.
According to data from the Central Bank of Turkey, home prices here have risen by 17.5 percent, while they have risen 22% in Istanbul. Knight Frank’s “Global House Price Index” compares the real estate market in 55 countries and ranked Turkey in the first position.
This has caused many to wonder why home prices in Turkey continue to rise despite the political turbulence in the country. President Recep Tayyip Erdoğan has come in for a lot of criticism from the Western media and human rights organisations for his authoritarian takeover of his country following the failed military coup.
Turkey has reintroduced the death penalty, which has led the European Union to postpone any plans of Turkey being given the membership of the European Union indefinitely. Indeed, President Erdoğan himself has practically given up any hope of Turkey becoming an EU member state one day.
This has severe ramifications for the property market in Turkey as many investors were operating under the assumption that Turkey would eventually be a part of the European Union. This now looks very unlikely, at least until President Erdoğan continues to remain in charge of the country.
However, Turkey is still a very attractive overseas property destination, which is a favourite with Middle Eastern investors. Wealthy Arabs see Turkey as a safe harbour for their investments. There is a lot of demand for Turkish properties from Iraq, Saudi Arabia, Iran and Kuwait.
Another factor behind the increase in property prices in Turkey is the migration from Syria. Over 3 million Syrian refugees have settled in Turkey over the last couple of years, and this has led to a major boom in housing demand.
Not just wealthy Arabs, or Syrian refugees, there is a great deal of interest in Turkish properties from Russia and China. Russians have always been interested in buying holiday homes in Turkey.
The recent clashes between Russia and Turkey brought that down a bit. But now that things are normal again between the Russian and Turkish governments, the Russian involvement is expected to pick up soon.
China is another interesting story. Hundreds of thousands of Chinese visit Turkey every year as tourists. But it is only now that they are beginning to invest in holiday homes or second homes here.
The Chinese investment in Turkish property is expected to be high and make up for any shortfall in the interest from other traditional investors in Turkey such as Britons, Germans and Scandinavians.
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