Property markets round the world have shown some drastic trends this year. Istanbul is the largest city of Turkey, property trends has far reaching influences both for Turkish economy and for real estate investors from round the world. Real estate Istanbul is among the most buzzing real estate ecosystems right now. The global pandemic and change of policies by Turkish government are two major trend changing events for Istanbul.
The impact of Covid-19 on Istanbul property market
As with the rest of the world the real estate market in Istanbul has been impacted negatively due to the pandemic. With the decline in tourists, there are has also been a decline in property prices and demands in the first quarter of the year have declined. But as economies are showing signs of recovery, demands for properties in this vibrant city of Istanbul is also seeing sunny days again. As international travel restrictions are being up slowly, Turkey is gearing up welcome tourists once again. This is good news for property market here. As a major portion of estate deals here are contributed by foreign investors.
Why the fall of Lira means for real estate market?
The fall of lira against major world currencies is seen as one big opportunity for foreign real estate investors. In 2019, the foreign investment rose by 15% which is approximately 45,967 units. This is higher than the previous years. The current year the figures are yet to be announced but as per the trends, the popularity of real estate Istanbul in international market is still very warm. Buyers from European countries, Iran, Iraq and the entire Gulf region are flocking to invest in properties in Istanbul. The numbers are steadily rising for foreign investment.
The impact of cultural closeness
Foreign buyers from various counties find a certain level of cultural closeness with Istanbul. This is due to geographical closeness to Turkey to both Europe and Asia. A lot of tourists from these continents visit Turkey and many of them choose to settle here mainly due to weather and proximity to culture. Hence cultural proximity to a large expanse of geographical area is one of the prime reasons why the curve for real estate istanbul shows a rising trend. Investors find Istanbul homely and thus feel like investing with confidence.
What is the effect of foreign homeownership rules?
Turkey opened its door for foreign investors in 2002, and gradually foreign investment rules, have eased by the government. For a few successive years property purchase under ‘reciprocity clause’ with chosen countries. Starting from a few areas, now purchasing properties is relaxed for entire Turkey. The larger extension areas of Istanbul are being developed keeping in mind foreign investment. Real estate Istanbul prices have seen an steady increase. The size of land foreign investors can now buy have been increased to 33 hectares. All these steps have been taken to promote foreign investment in various cities of Turkey. The focus is however on financial and tourist hubs. The popularity of Real estate Istanbul is an example of tourism and financial affects on real estate market. The exemption of VAT is another factor leading to rise in foreign real estate investors.
Citizenship through property
The Turkish government has introduced citizenship through purchase of property of at least $250,000. This is a dip from the earlier amount and thus attracting more foreign buyers. Several investors looking for an alternate country citizenship go through the scheme to attain Turkish citizenship. Citizenship is also granted to fixed capital investment of $500,000. Real estate Istanbul has been a largely been boosted with this scheme.