This year will be another important year in completing the growth of the Turkish real estate market, especially in Istanbul. But what is the real impact on real estate prices in Istanbul in 2019?
In 2018 there was a big jump in the real estate market in Turkey, with the introduction of a government policy last September to grant foreigners citizenship to investors in properties worth $ 250,000 and more, Which led to an increase in the demand for investment in the real estate sector in Istanbul.
This action coincided with the devaluation of the Turkish lira, Even foreign investments in real estate recorded for half of the foreign direct investment during the year. This is the first time in the history of Turkey, where purchases of real estate are leading foreign investments of all kinds.
2019 forecasts in the real estate sector in Istanbul:
Following are our 2019 forecasts for the real estate sector in Istanbul by reviewing many events that make any foreign nationalities to invest in.
Investors are not only from the Middle East but also from other foreign countries:
As Turkey is a stable country with cultural values, its popularity with property buyers from the Middle East is at its highest level ever. In 2018, Iraq topped the list of foreign buyers, followed by Iran, Saudi Arabia, Russia and Kuwait. One of the best things for investors from the Middle East and neighboring countries is that they have the opportunity to obtain Turkish citizenship through investment in real estate.
As Turkey keep its large position as an investment location, especially in Istanbul, real estate investment growth is expected to continue in the country in 2019 and beyond.
The real impact that affect this sector growth through 2019:
Disorders in the Middle East:
Disorders regional continuing in the Middle East is transforming the flow of investments towards safe havens which are the closest and most stable found in Turkey.
Last year Saudi Arabia had a campaign by Crown Prince Mohammed bin Salman to fight corruption, including some princes and even members of his family who were arrested.
Saudi Arabia is now a good foreign investor in Istanbul properties. Therefore, these conditions set higher levels of investment under current circumstances.
Protests against the stagnant economy and rising cost of living in Iran have led to widespread criticism of the ruling regime, and this is the biggest challenge to the current authority in Iran since the 2009 demonstrations. The Iranians are major investors in Istanbul real estate, and uncertainty in these circumstances leads to increased demand for real estate and thus represents the wealthy Including a safe haven as an alternative investment.
The return of Russians to buy real estate:
With the Russian-Turkish relations seeing a marked decline in 2016 and with low numbers of Russian visitors to the country, and the consequent decline buy Russian real estate in Turkey and who they are investing in apartments and villas in Antalya, Bodrum and Fethiye.
However, the Russians returned to Turkey in 2017 with Russia lifting sanctions against Turkey, and thus the number of Russian tourists in Turkey increased by 30% from 2016. However, tour operators recaptured their programs for Russians preparing for summer holidays in Turkey. Real estate developers in Istanbul believe that the demand for real estate from Russians will increase this year as the number of Russians buying real estate last year reached 2297 properties.
Investors’ gains from the exchange rate of the lira
When the lira reached its lowest level last year, many foreign investors had great investment opportunities in Istanbul, where most of them took advantage of the lira to buy many properties.
At the present time the Turkish lira in a marked improvement, and this does not mean that the demand for real estate will decrease but in my opinion this year the exchange rate of the turkish lira is very good to buy, taking into consideration the decision to obtain Turkish citizenship for 250 thousand dollars. We all know that Turkey’s economy is strong and this will increase demand for real estate in Istanbul.
Istanbul is still a leader in real estate sales:
It should be noted that property sales in the largest city in Turkey will continue to led and strengthen this investment sector. Where foreign direct investment is expected to grow in Istanbul compared to the previous year.
The best area for investment, which is expected to increase its sales prices in the future to be a successful investment is Basin Express road between Ataturk Airport and the Mall of Istanbul. I recommend investing this year in this road before prices start to reach high levels like neighboring areas. Basin Express is still relatively low.
This area is supported by government as well as new metro lines will open soon, in addition to the existence of many famous hotels.
In conclusion to this article I would like to advise anyone who has the intention to buy a property in Istanbul by making a purchase decision this year to take advantage of the exchange rate of the lira and get the best price.