Long-Term Prospects for Turkish Real Estate Market
Turkish real estate market continues to rise. The real estate sector has a significant share in the country's recent economic growth. Although some recession and slowdown have been experienced in recent years, it generally maintains its upward trend. In 2020, 2 million 678 thousand 74 sales transactions were made across the country, including 1 million 499 thousand 316 residences. Thus, the record for all years in the real estate sector was broken. It seems that these developments in the sector will continue in the long term.
Turkey's population is expected to reach 84 million in 2023. The population will increase by more than half a million in Istanbul, Kocaeli, Bursa, Ankara, Izmir, and Antalya. Therefore, the concept of urbanization will gain a different dimension, and the urban population will increase from 57 million to 71 million. Urban transformation and construction sector is indispensable for the country. The housing stock is renewed starting with risky buildings; the interest and need for housing loans for urban transformation projects are increasing daily. Rapid urbanization and demographic changes will lead to significant growth in the real estate investment sector in the future. Simultaneously, as opportunities in the sector increase, asset investments in the industry will also increase. Global stocks of investment-grade real estate are expected to increase significantly until 2030.
Thanks to Turkey's geographical location, developing market environment, investment incentive programs, and tourism opportunities, the volume of investments is growing significantly and will continue to grow. With the fall in interest rates, mortgage sales increased exponentially. The low mortgage loan rate is an essential point for the progress in the real estate sector. Parallel to the global trend, the amount of investment directed to real estate and related project development figures are gradually increasing in our country. The real estate sector, which has contributed to the economy with significant growth potential in the country in recent years, will continue to be the heart of the economy in the future.
As long as stability continues and macroeconomic figures remain at current levels, Turkey will generate higher returns in the next ten years than in the past ten years.