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The Turkish real estate market is booming – despite or thanks to Corona?

The Turkish real estate market is booming despite the Corona crisis. Many domestic and foreign investors are drawn to the country’s coastal regions. As demand increases, so do prices.

Turkish coastal regions are gaining popularity

In the course of the corona crisis, real estate was able to establish itself again as a secure investment and once again manifest the nickname concrete gold. However, the boom in the real estate market does not only appear to be continuing or growing steadily in Germany, the demand for real estate is also increasing in Turkey during the crisis.

The Turkish real estate market is not only enjoying local investors, because buyers from all over the world are currently in demand for Turkish properties on the Mediterranean. As Yusuf Yüregil, mayor of the municipality of Ge, reports in an interview with the Handelsblatt, a plot of land there is currently changing hands almost every day. In addition to plots that can be regularly built on, the arable fields are particularly popular. “Almost half of all fields around the town have been sold and at prices like those in the larger tourist towns,” reports the mayor.

But foreign investors are also romping around in other coastal regions, as Ömer Günel, Mayor of Kusadasi, explains to hurriyet.de. In the summer of 2020 alone, the population grew massively, while the region still had 117,000 residents in the spring, it is now 424,000. This hype is also reflected in the price of the property. Here the range has shifted from 28,000 to 99,000 euros to 55,000 to 220,000 euros, an increase of 100 percent.

The corona pandemic is causing people to flee the cities

The corona pandemic drove people worldwide out of the cities and aroused the longing in some for a place to live by the sea and with a lot of freedom.

The real estate agent Penelope Sieper explains the boom in Turkish real estate to Handelsblatt as follows: “Many properties are cheaper compared to France or Spain.” In addition, Turkey was less affected by the pandemic than the other Mediterranean European countries in the summer months.

But the strong euro compared to the Turkish lira also makes it easier for European investors to acquire Turkish properties. Accordingly, the real estate boom is being driven by several factors. “We are looking for both: a good investment and more space for yourself,” adds Sieper. However, the broker’s agency was able to show that the buyers were more likely to buy the properties because of the promising investment.

Building permits severely restrict builders

Anyone who purchases a plot of land in Turkey must, however, obtain a permit before they can build on it. The building owners are severely restricted in their freedom of design: for example, the floor space may only make up more than 20 percent of the total area in exceptional cases. The distance to the neighboring property, the ceiling height and the maximum number of floors are also prescribed.

For this reason, many property owners in the said regions are initially building without a permit and despite the threat of severe penalties. It can happen that the city administration razes the illegal objects to the ground at the expense of the client.

Nonetheless, some owners take the risk, “We are building illegally for the time being,” reports a client from Ge to the Handelsblatt. The owners of such illegal buildings are hoping for a building amnesty, as there was in 2018, so that the properties can be approved in retrospect against a fine. Accordingly, this hurdle does not seem to do any harm to the property boom in Turkey for the time being.

Image sources: Nejdet Duzen / Shutterstock.com

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