The Turkish real estate sector continues to grow despite the global economic recession affected by the market closures and the contraction of economic activity since the spread of the Corona epidemic.
The Turkish government announced an economic package that includes supporting opportunities for people with low incomes to own housing, as part of the government's efforts to revitalize the economy as part of the steps to return to normal life.
Within this plan, the state-owned banks began allocating loans with reduced interest to those who wish to buy real estate from citizens, and also include providing loans with very long deadlines for investors seeking to own commercial and tourist properties.
Turkish lawyer specialized in selling real estate Anso Parishoglu said that the profit rates on housing loans range between 0.075% and 0.085% of the monthly payment value of the property, explaining that benefiting from these conditions is not limited to the Turks.
Foreign investment
Parishoglu explained to Al Jazeera Net that the facilities provided by the government include the installment of house prices over long-term payment periods, up to about 180 months and without a down payment sometimes, or a few payments in other times, according to the value of the property and the guarantees provided by the customer to the bank.
He added that foreign investors and residents in Turkey can take advantage of these advantages, but on more difficult terms than it is for the Turkish citizen.
He pointed out that the requirements for government funding for foreign housing relate to the availability of bank guarantees related to work stays documented by the social security system, the presence of Turkish sponsors, and proof of bank movement for bank accounts of residents.
Turkey is a very attractive market for foreign investors and buyers, as the Turkish Statistics Authority stated that the number of properties sold to foreigners during the year 2019 amounted to 45 thousand and 964 properties.
Economic agencies said that the Turkish real estate sector witnessed a big movement during last June, as the number of properties during which 93,704 properties were sold, recording an increase of about 14 times from the same month last year.
The authority pointed out that Istanbul occupied the first position in the most requested states for the purchase of real estate, followed by Antalya, Ankara, Yalova Stock Exchange, all of which are tourist states.
The Statistics Authority and the Turkish Ministry of Trade revealed that real estate sales in Turkey recorded during the first quarter of this year 2020 their best performance in 8 years, indicating that the Iranians ranked first in the list of foreigners who most buy real estate in Turkey, then Iraqis, Russians, Afghans and Yemenis.
Investment incentives
Economists believe that if the application of reducing the interest rate continues to apply for loans for a longer period, then the number of real estate that can be sold in Turkey to citizens and to foreign investors may reach at the end of this year 1.5 million units.
According to lawyer Parishoglu, foreigners are willing to buy real estate in Turkey due to the rapid growth of this market and its achievement, and to the incentives offered by the government and the rights granted to buyers.
According to the Turkish lawyer, the buyer of the property gets the right to a renewed residence in Turkey, and guarantees granting the same residence to first-degree relatives, as well as granting Turkish citizenship to a foreigner who buys a property worth up to $ 250,000.
Article 35 of the Turkish Law - Concerning the Right to Ownership - grants the foreigner the right to own property in any area of real estate in the country, as long as the property does not fall within the scope of military areas or in rural areas and any land belonging to the state in general.
Investment methods
Turkish real estate agent Dhafer Cevci said that this movement stimulated urban activity again in Turkey, especially in housing attractions north and west of Istanbul, where most of the land suitable for construction was sold for these projects.
This demand for land purchase revived the spirit in the real estate trade, and led to a rise in prices between 40% and 60% since the beginning of this year only, especially in the vicinity of the new airport and the parallel channel.
And Chefchi mentioned to Al-Jazeera Net that all social sectors are now accepting to buy real estate, and they are no longer restricted to the owners of capital.
He explained that the big investors are the ones who hold the big plots of land, while others resort to sharing small plots of land that they buy and leave it for sale after it doubles its price.
He pointed out that the demand in various Turkish regions varies between the sale of agricultural and housing lands and lands that are suitable for establishing productive and tourism projects.