Housing Sales to Foreign Investors Increased by 58.5% in Turkey
Turkey’s economy performed a 7,4 per cent growth in 2017. Construction sector, however, performed better and had a 8,9 per cent growth rate. In the first quarter of 2018 compared to the relative quarter of 2017, Turkey’s gross domestic product had a growth rate of 7,3 per cent. In the second quarter, the rate is 5,2 per cent.
Exchange Rates’ Effects on the Real Estate Sector in Turkey
REIDIN Turkey’s Real Estate Confidence Index for the last quarter of 2018 decreased by 31% to 59% compared to the previous quarter. This means that the prices for the houses for sale are not expected to get significantly higher in the next quarter. It is possible to say that Turkish Lira’s loss of value against other currencies in the third quarter of 2018 had a positive impact on the real estate purchases of foreign investors in Turkey. House sales to foreign buyers are rated as 6,1% in the first quarter of 2018, 8,5% in the second, and 12,8% in the third quarter according to REIDIN and GYODER’s statistics.
Foreign Investor’s Position in Turkey’s Real Estate Sector
The traditional investment option of Turkish investors, real estate investment, especially in the long run, is always a solid choice. Yet in the third quarter of 2018, the periodic gainings from the real estate sector had been below the inflation rate. Sharp rise of exchange rates in the last year has made Turkey a great location for foreign investors to invest in real estate. Because of the disadvantageous volatility in the Turkish economy, house prices in foreign currencies have been lowered immensely. Number of house sales to foreign buyers between the months January and September in 2017 is 15241. For the same period in 2018, however, the number is 24155.
Despite the fact that the rate of house sales to foreign buyers is relatively small, especially in 2018, the number of sales to foreigners increased largely. In the first nine months of 2018 compared to the same period of 2017, real estate sales to foreign buyers increased by 58,5%. By this rise, the rate of house sales to foreigners compared to the total house sales in Turkey, have become 2,4 per cent in 2018.
