Located at the intersection of Europe, the Middle East, and Central Asia with a population of approximately 81 million, Turkey offers immense business opportunities for real estate developers and investors by combining a large construction industry with growing commercial and industrial output. Consequently, the Turkish Citizenship by Investment Program has become increasingly popular among real estate investors in 2019.
Some key facts and data regarding the Turkish real estate industry include:
1. Over the past decade, the Turkish real estate industry has accounted for nearly 9% of GDP.
In terms of investment, Foreign Direct Investment (FDI) cash inflows remained at USD 10.8 billion in 2017, with investments in real estate and construction totaling USD 4.6 billion (accounting for approximately 42.9% of total FDI).
2. Urban renewal and major urban projects dominate the agenda for the foreseeable future, particularly in Istanbul.
Some urban projects include: the Marmaray railway, Kanal Istanbul, the Yavuz Sultan Selim Bridge, the Eurasia Tunnel, the Great Istanbul Tunnel, and Istanbul Airport.
3. Turkey has a high population growth rate and a very young demographic structure, leading to strong housing demand.
As of 2016, Turkey already had more than 20 major cities with populations exceeding one million. According to data released by the Turkish Statistical Institute and future projections, Turkey's population will see a net increase of 5.1 million between 2015 and 2023. Correspondingly, with population growth and continued urbanization, the urban population is expected to increase by 7.6 million by 2023. The surge in urban population will generate a new demand for approximately 4.8 million housing units.
4. In 2017, total housing sales in the Turkish real estate market reached 1.4 million units, and the number of properties sold to foreigners began to increase.
In 2017, 22,234 housing units were sold to foreigners in Turkey, a year-on-year increase of 22.2%. Regarding housing sales to foreigners, Istanbul was the top-performing province in 2017, with sales of 8,182 units, followed by Antalya, Bursa, and Yalova, with sales of 4,704, 1,474, and 1,079 units, respectively.
5. Turkey ranked second globally for house price growth in 2017.
According to the latest data released by Knight Frank, property prices in the coastal city of Izmir, Turkey, rose by 18.5% in 2017, ranking second in the world, surpassing Australia, Canada, and Hong Kong.
6. According to the 2016 JLL Cross-Border Retailer Attractiveness Index, Istanbul became the 5th most attractive market in Europe, following London, Paris, Moscow, and Milan.