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Housing sector from past to our day
The Republic of Turkey serves as a bridge between Asia and Europe. Ankara is Turkey's capital city yet Istanbul is the largest city in the country. In 2012, Turkey had 76 million populations on average. Most of this population is young and mobile. This situation makes Turkey a country which is suitable for investment in property.
Turkey really has a huge area ready to be used. 783.562.38km². This size proves that there is a big potential in the country. In the last decade, estate industry has improved unexpectedly. Although there is a big regression in estates in Europa and USA, Knight Frank figures indicates that estates have grown in Turkey by %18 in the 2014-2015 years.
Turkey is the 3rd most profitable country in the world for property buyers. And Istanbul is the most charming city in Europa for estate owners which have been marked by PWC and Deloitte Consulting. Turkey's chance of getting a EU membership also has an effect on this potential. This potential has caused people to buy properties in Turkey. Law amendments such as the mortgage law, property title registry law have helped investors buy properties in Turkey in a more secured way. All of those law amendments have been a big chance for Turkey to grow in estate area.
Demographic improvements and economy have opened a way for investors to buy an estate and set up a business in Turkey.
With good inflation rates and economy, investors realize that estate area has highly improved in Turkey. Turkey has created high quality in this sector to increase their chance to be a part of EU. Turkey has made it internationalized for this purpose. The analysis in ECR shows that Turkey has done better than 8 members of 27 EU countries and Turkey’s ECR score has changed to 8 from 48 in ten year period.
%60 population of Turkey is under 40 years old. Besides that, it has 822 billion GPD. When these two are combined, Turkey directly becomes a target for investment.
Mortgage companies have increased lending with more than 65 million in 2011. Turkey has attracted more than 30 million tourists 2015 and it made the country sixth the most visited destination in the world. This huge tourist number shows how important Turkey is for estate buyers.
Turkey provides big, modern shopping halls. It accesses to more than 1 billion people each year. This speeds up substructure enterprises.
SWOT Analysis for Turkey Real Estate
-For GDP, Turkey is the leader country in the world.
-Turkey has a powerful economy and bank legislation.
- Globally famous companies.
-Turkey can co-operate with mortgage facilities.
-More encouragement by the government each year.
-To have a land is not easy because of construction permit problems.
-There are many old houses which are not suitable for mortgage facilities.
-Opportunities for new housing in big cities.
-Natural factors have highly redounded necessity for quality construction.
-High tourist numbers and investors make space for residential properties.
-Earthquakes are common and some investors may be scared because of this issue.
-The sector is still not stable like in real estate markets such as UK and US.
Economic outlook of Turkey
Turkey has gorgeously grown with its GDP in las ten years. Turkey has shown %4 growth of GDP between 2002 and 2017 (for details, check graphic). Merge was 3.500 USD in 2002 and it changed to 10.500USD in 2011. This graphic is a proof that Turkey will be a dominant economic power within next years. There has recently been an economic meltdown that caused slump in many countries. Turkey was also one of those countries that highly affected. Foreign investments have stopped investing because of this issue. This caused slowdown. Yet, it did not take a long time to change. Turkey has grown %9 in 2010 and 2011. After all of those developments, Turkey quickly has become 17th largest economy in the global world.
The idea of being a part of EU is one of the most important factors of Turkey’s economic success. With economic success, Turkey can sit next to other European countries and can make a move to stay in that position. As Turkey actively focuses on this subject, economy stays stable and regularly grows.
Turkey’s central bank’s attitude has also impact to protect economic balance of Turkey.
Turkey has beaten 23 EU countries in 2011 by decreasing budget deficit from %17 to %1.3. Turkish Government has focused on foreign trade and it has been a key role to improve economy. Turkish Government’s attitude has increased Turkish exports to 157 billion USD from 36 billion USD in 2002.
Foreign investments have also contributed to this subject. Young population, domestic market, labour force has all helped Turkey reach today. By 2015, 168 billion USD direct investments were made. This proves that people believe Turkey’s economic power.
Besides that, tourism has also been a huge money source for Turkey. Turkey attracts many tourists every year as one of the most visited countries of the world. Warm climate, historical places, natural beauties are one of the reasons why people choose Turkey for holidays. In 2015, 30 million tourists have spent more than 31 billion USD in Turkey when they have visited the country.
Turkish business and privatization have even contributed to Turkey’s economic success.
Legal and political structure
Turkish Republic is stated with democratic and pluralistic laws. It has been established in year 1923 and has been constituted in 1924. The Government has a parliamentary system which cares about human rights and freedom of expression. In 1961, another adding has been made into this system, a bicameral system which has 450 deputies and a senate with 150 members. After that in 1982, it is decided that sovereignty belongs fully to the nation with a referendum.
In this sense, parliament has made law amendments to increase people’s rights and freedom. Being a part of EU was one of the reasons of these improvements. Chat to be a part of EU started in 2005.
The Grand National Assembly (TGNA) includes national assembly. Senate has right to legislate. Once every four years, parliamentary elections are made. After that, 550 deputy members of TGNA are elected. Elected members represent Turkish nation and they swear an oath to do their job respectfully. Functions of Grand National Assembly (TGNA) are listed as
Writing a new law
Making better current laws
Looking out for cabinet and authorizing them for certain duties
Debating on funds responsibility
Preparing a solution on funds
Being responsible for currency printing
Confirming any international agreements
Declaring war or state of siege
If there is 3/5 vote, declaring amnesties and pardons
Turkish executive involves two sections; The President and the Council of ministers. The President of Turkey is leading of state and the President represents national solidarity of the country. The President is chosen by the Turkish Grand Assembly members older than 40 years old. These members must also be a Turkish citizen and must have a higher education. The President must obtain popular vote to be elected. The President takes up to a position for five years and can contend for last term. The President has right to uphold the constitution and has a strong power on the legislature and the judiciary. A Prime Minister is also chosen by President of the Republic inside of the TGNA. Ministers in Turkey are nominated to be Prime Minister and Prime Minister is assigned by the President. The President can discharge ministers with the recommendation of Prime Minister or he can assign them for a duty. Duties of ministers are to practice internal and foreign policies.
The Turkish judicature depends on the rule of law. Judges are tenured and they have a chance to function independently. The legislative and the executive are bound to law and judges’ decisions and they need to be accepted. There are two separate sections for judicial: legal, special and administrative divisions.
In Turkish constitution, there are six supreme courts which are:
The constitutional court
The council of state
The supreme courts of Appeal
The supreme military court of appeal
The supreme military administrative court
The court of Jurisdictional conflicts
Investment guide to Turkey
Turkey is economically considered to be the fastest growing countries. If you want to invest in real estates, you should always consider Turkey as a good and significant option.
Visiting tourists, economic range, different investment methods etc. make us look at Turkey positively.
Why would you invest in real estate in Turkey?
Increase in economy with more than 800 billion USD, being 17th largest economy in the world and 168 billion USD exports help people look at Turkey in a positive way.
Turkey also has a young population. 76 million people live in Turkey and %60 of them is from young generation. This young population is encouraged to be active in business and contribute to Turkish economy. Young people might leave their families’ houses early to create their own life. This situation brings more necessity to housing. In Turkey, it is believed that there is lacking of properties more than 2.5 million, at least.
Taxes are not high in Turkey- If you are an investor, you should consider this option. Turkey has decreased corporate tax to %20 from %33.
Turkey has a large domestic market. Thanks to the educated population, Turkey creates a local big market for people. This is a big chance for real estate investors.
Turkey has a decent substructure. In the area of technology and transportation, Turkey offers many opportunities. These opportunities make Turkey a secure country to invest.
Benchmarking Turkey to France, UK, Russia, Greece and US
When compared to other high-developed countries, analysis can show you why Turkey is a good real estate investment country. By looking at the graphics, you can easily understand why Turkey is e a good choice for an oversea property buyer.
UK, US, Greece, France and Russia are some of the countries that Turkey vies for investment.
In the finance and banking sector: Turkey is a strong banking organising. However, Greece is a weak one. Turkey is on the front of France and Russia and almost on the same level with UK including finance and workforce. This success draws people’s attention to invest in Turkey. Turkey does not enforce any restriction about money and money-flow can easily be put in process from Turkey. Turkey has a more successful banking sector and manpower than BRICS. Young people are well-trained in those sectors and they are ready for every situation with technical abilities.
Turkey also leads in Globalisation, Flexibility and Adaptability when compared other countries such as US, Russia, Greece and France. Turkey has given chance to other countries for investments and it has brought Turkey direct investments, foreign capital. International trade is more practicable in Turkey than most of the stated countries in the benchmark.
Setting up a business and registering title to real estate is also very easy especially compared to US, Russia, Greece, and UK. New TCC has made it to create a company even easier than before. New TCC Code No. 1602 has been published in the official gazette stating that international standards are met. Only with a stock holder, you have a chance to start your own business. This New TCC does not require foreigner as a minority shareholder before registering the company.
By looking all of those important factors, you may clearly see that investing in Turkey real estate is more profitable than US, France, Greece, Russia and most of other EU countries. The Republic of Turkey has done everything they can to help real estate investors support the economy of the country.
It is highly possible that you will get more income in Turkey than most of the any other countries in the world.
Why invest in property in Turkey?
How to get a Residency permit in Turkey?