Do foreigners invest in Turkey? The answer to this question is a huge NO!
So many properties are sold to foreigners in Turkey. You may be asking if these are not investments. No, they are not, they are merely ordinary properties that they buy to stay in Turkey when they come from time to time. Looked closely at the values of these properties, you will see that they are in the band of 100-200.000 USD. This figure shows not only that the very wealthy investors are not coming to Turkey, but also that the rich ones are risking just a small amount for this heavenly country.
Post-Brexit expectations failed
After Brexit, Turkish real estate sector expected those who invested in the real estate market in London to move to Istanbul. Everyone rubbed their hands, page reports appeared in the newspapers. But it did not happen as expected. With the depreciation of the British Pound post-Brexit, housing prices in London have become very affordable for investment. Moreover, in most places rent income meets the mortgage tax rate. The main investors are still in markets like London.
In the last two years, the average return period of real estate in Turkey has increased from 16 years to 18 years. In the UK, properties that redeem themselves in 12 years can easily be found.
Turkey is lucky at a different point. With racist rhetoric rising in Europe, where the citizens of the Gulf countries are not so comfortable to live in, and alternative markets like Egypt-Bosnia, are not very attractive.
You are already living in heaven!
Turkey is both close to them in terms of culture and a corner of paradise. It is not possible to forget what an Arab citizen who lives in Turkey said, “Most people fast and pray throughout the whole life to go to heaven. You are already living in heaven!”
Even though the complaints of the Gulf citizens who have recently acquired real estate from Turkey have increased, we still have natural advantages.
Are these individual purchases adequate? While Turkey is not even attractive for small foreign investors, how do you appeal to large investors and funds? In order to create this attraction, it is necessary to ensure the security of the investment and stabilization afterwards. Major structural reforms are needed in the field of law and economy.
Otherwise, Turkey will not be able to go beyond a country where foreigners appreciate their money in another country and occasionally buy a cheap property to come and stay.