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Feb 5, 2023

Buying a property in Turkey with Turkish lira or US dollar, Which is better?

The exchange rate of the Turkish lira has changed recently and inflation is increasing at the end of each year, so that many real estate investors in Turkey are wondering: Which is better when buying Turkey real estate, paying in Turkish lira or in US dollars?

Before talking about buying Turkey real estate, whether in lira or dollars, let us take a small tour of Turkey’s economy and its relationship with the Turkey real estate market.

Turkey's economy

Turkey economy constitutes one of the drivers and factors motivating the continued strong growth in the Turkey real estate market. Turkey is considered one of the emerging and dynamic economies in the Middle East and Europe.

Economists also know Turkey as one of the modern industrialized countries in the world. Economic development is accelerating and investor interest is increasing in parallel with improving economic conditions.

Turkey has the nineteenth largest nominal GDP in the world, and the thirteenth largest GDP by purchasing power parity. A founding member of the Organization for Economic Co-operation and Development and a member of the G20 economic group. It is also part of the European Union customs union.

Turkey's economy has a direct relationship with the Turkey real estate market, as the growth of the prosperous economy encourages increased demand for Turkey real estate. Investments in infrastructure and urban development projects are also boosting Turkey real estate market. The legal framework supporting foreign investment also provides attractive opportunities for foreign investors, as they contribute to enhancing economic development and achieving sustainable returns through Turkey real estate.

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Shall I buy Turkey real estate in lira or dollar?

Agreeing to pay the price of the property in Turkish Lira is better than the US dollar when buying Turkey real estate, due to the low exchange rate of the Turkish Lira. In other words, whoever pays the first installment in Turkish lira and completes the rest of the installments in Turkish lira, and if there is a change in the value of the lira, this will benefit the investor who owns the US dollar, as he will spend a smaller amount in US dollars to convert it to the required amount in Turkish lira. 

Therefore, paying the price of the property in Turkish Lira is better for foreign investors who own the US dollar, of course, taking into account that the location of the property is in a good place and choosing a reliable company so that the investor does not fall into the trap of fraud and deception.

Turkey real estate market between the past and present

Between 2012 and 2018, the Turkey real estate market was characterized by an unprecedented real estate boom in Turkish history. It was not in vain, however, that the Turkey real estate sector is set to take the lead in economic growth and become a major foreign exchange earner by attracting foreign buyers, and it seems to have been very successful in its mission. The sector accounted for approximately 8.4% of Turkey's GDP over the past decade.

As usual, Turkey was exposed to internal and external crises, especially during the Renaissance period, but the surprise came from among all these crises, as things are close to collapse or at least negative fluctuations due to the crises. The Turkey real estate sector accounted for an influx of foreign investment into the sector amounting to nearly half of the total FDI in Turkey in 2021. Of the $10.8 billion represented by the total FDI inflows, which entered the country in 2017, real estate and construction accounted for $4.6 billion. Among them, these are levels that were not previously determined by the Turkish economy. Foreign buyers' purchases of real estate in 2017 doubled from 2016 to $1.7 billion.

Turkey real estate prices

Paradox is exactly how Turkey real estate prices continue to rise, giving the potential to be profitable. A house was bought by someone in Antalya city center in 2013 and wants to sell now. He will inevitably make a lot of profits from the price difference between the buy and sell dates. Official statistics support this. Government studies indicate that the Turkey real estate price index rose in June 2018 by 0.55% compared to May 2018, and compared to the same period in 2021, the average housing prices in Turkey reached about 10%, compared to the past three years. The percentage increased by about 38% to reach 82% compared to prices about 8 years ago. As for the past year, 2023, official statistics indicate that real estate prices have increased by 75%, and this is precisely what we are talking about in profitable investment in Turkey real estate.

Why shall I buy Turkey real estate? 

Buying Turkey real estate represents a tempting and profitable option for many global investors and buyers, for several reasons that make this decision a smart investment. One of the key inspiring aspects is Turkey's growing and dynamic economy, which is witnessing strong growth and continuous development. This is through dozens of projects recently launched by Turkey, such as new infrastructure projects, the new financial center, defense projects, technology projects, the New Istanbul Canal, and many others. All this economic growth enhances the demand for Turkey real estate and adds stability to the market.

In addition, Turkey is distinguished by its geographical and cultural diversity, which is reflected in the Turkey real estate market, which offers diverse and distinctive options, ranging from traditional homes to luxury residential units and commercial projects. This diversity is enhanced by providing multiple investment opportunities that suit the needs of different investors and businessmen.

The most important reason is that the Turkish government supports foreign investments in real estate through encouraging policies and facilitating procedures, which makes the investment process easier and more attractive, whether through obtaining Turkish citizenship through real estate investment or obtaining real estate residency for real estate investors. Which also enhances the attractiveness of investing in this country, which has a rich culture and an ancient history of civilizations, making it a popular destination for those seeking to achieve sustainable and large returns and a luxurious life experience.

Shall I buy Turkey real estate despite the crisis? 

In light of the increasing purchasing power of foreigners due to the fluctuation of the lira, with the Turkey real estate sector being stagnant and unaffected by crises; Some may wonder whether this is the right time to go to Turkey and buy a property, despite the crisis that the Turkish economy is suffering from, and it cannot predict its results under any circumstances, so there are many reasons that support the timing of entering into a property. The fact that the sector is not affected by the recurring crises that hit the economy from time to time, as was recently mentioned, makes investment in Turkey real estate market, as usual, stable and supports long-term investment.

If you want to know more about real estate investment in Turkey, do not hesitate to contact us via WhatsApp, here. Our real estate consultant will contact you as soon as possible.

 

 

 

#akarkom_real_estate  #real_estate_investment  

#property #turkey_real_estate #turkish_citizenship

 

 

 

 

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