As one of the fastest growing emerging markets, Turkey has a lot to offer foreign investors. Here are 10 reasons for investors from the Middle Eastern and the Gulf to purchase real estate in Turkey.
Turkey: An emerging real estate market
The real estate market has been grower faster than ever in the last 10 years with a variety of high level housing projects. Turkish companies have proven themselves as second best in the world's largest 250 international construction contractors list for eight years in a row. For instance, Kuwait Central Tenders Committee (CTC) announced that it approved a tender offer of 1.312 billion dinars ($4.34 billion) for a Turkish company to construct a new terminal building at Kuwait International Airport.
The real estate sector in Turkey has gained momentum in recent years thanks to urban transformation. This momentum rose particularly after the Reciprocity Law, which opened the way for foreigners to buy houses in Turkey. According to the Global House Price Index (July 2015 data) by the International Monetary Fund (IMF), while "real house prices over the past year" increased in most countries, Turkey ranked fourth with about 10 percent. According to an Emerging Markets Real Estate Information (REIDIN) report for Turkish Real Estate Market Overview, residential prices increased by 16 percent in August compared to the same month of the previous year. The rate was 8 percent for last six months, so it can be expected that the end of year data is likely to provide at least 16 percent growth. House prices go up due to well-designed projects and companies built with high quality materials to satisfy customers. These companies always aim to construct better projects than previous ones; so they both compete with rivals and themselves.
Investing all your money into one type of asset or geographical area can be risky. The best decision would be diversifying risks. To be called a successful investor, people need to have a well-organized portfolio. The most common phrase about diversification is "do not put all your eggs in one basket" since if the basket is dropped, all the eggs will break. Having different baskets gives you the opportunity of keeping your eggs in one piece. The same is valid for your money (eggs) and portfolio (basket). If you are considering real estate investment as one of those eggs, Turkey would be one of the best choices of portfolio basket.
People from the Middle East and the Gulf can find places and events in Turkey, which feels like home. With a high Muslim population Turkey is a country where Muslim people can fulfil their daily Islamic practices easily. People can both find goods/services and halal restaurants in traditional Turkish cuisine. It is not a problem to find Middle Eastern cuisine too, if you miss it. It is not hard to find a mosque in almost every neighborhood.
4 seasons and Blue and Green Turkey: Sea and Forest
Turkey is surrounded by the Mediterranean, Aegean, Marmara and Black Sea. Arab investors generally prefer houses nearby the sea. Green areas, nature parks and lakes are favorites for these people. So, you can enjoy your time at the heart of the blue and green if you are planning to spend some time abroad. In Turkey, it is also possible to experience four seasons in a year.
Your home is better than any hotel
If you visit Turkey almost every year, buying real estate is not only a transaction but also an investment. You need to pay thousands of dollars for hotel expenses. In this case, you would also have booking problems for peak times, particularly for summers. The hotel will never give you comfort of your home. You do not have to invest in one type of real estate because the Turkish real estate sector offers you a variety of choices like flats, residences, and family detached houses. Moreover, Arab interior architects/decorators working in Turkey can design your houses as you wish.
Use the advantage of AED against TRY
Since the beginning of the year, 163 countries' currencies have lost value against the dollar. However, this is the point where investors from the UAE are at an advantage. As a consequence of the fixed exchange rate regime, Turkish real estate prices are more reasonable than ever for investors from the UAE since Turkey applies a market-oriented monetary policy. These people are able to use the opportunity of this before depreciation in the Turkish lira ends.
Have you been in Turkey in recent years?
The Middle Eastern population, fortunately, has been climbing especially in summers in Turkey in recent years. So, socialization is not a big problem anymore. This cosmopolitanism gives you an opportunity to live in Turkish districts or in your people's district.
Last but not least
Are you a history lover? If your answer is "yes," Turkey is called the cradle of civilizations. Istanbul has been the capital of many empires, so you can find the traces of them while you tour the streets of Istanbul. The Blue Mosque, Topkapi Palace, Galata Tower, the Grand Bazaar and many other historical places are perfect for history lovers.