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Why is property so cheap in Turkey?

Why is property so cheap in Turkey?

Actually, it is not cheap for average Turkish citizens including low and middle-class people. When we evaluating the salaries given by companies to these classes, it is hard to say that buying a property is not easy if people live in a rental house. The expenditure on houses such as bills, rental payments, food, and entertaining expenses consist of a huge amount of their salaries so that people generally prefer to rent a house instead of buying one. On the other hand, buying real estate is one of the most preferred investments for Turkish people who have the opportunity to get one due to creating an easy income without doing anything. That’s why property sales still create a big market and sought after sector in the country. So, let’s see what the other reasons affecting the real estate market in a good way.

Firstly, here seems like a heaven for foreigners because of the currency of Turkish Lira against other currencies such as Euro, Dollar and more. The title is suitable for this group who want to invest in the real estate market in Turkey . I share my idea about the title on 21 March 2020. At this time, 1 Euro is equal to 7.05 while the dollar is 6.55. When we have a little search about the price of real estate in Istanbul where it is one of the most strategic and hosting place for worldwide companies, we see that foreign people can buy a property from 50.000 € to 200.000 € to buy an average all-inclusive apartment in a luxury residence. It means that you can buy an apartment without being a high class, unlike the Turks. With a little effort, you can have a house, rent it – the very popular mechanism for foreigners as I told you above – and you may live a peaceful life with your small amount of retirement salary here, even you don’t think live now. This system is not new, many European people do it on the west side of Turkey such as Fethiye, Marmaris, Izmir, Antalya and more where the cities are known for fresh air, nature, beautiful beaches and sunny days throughout the year. This is one of the advantages for low segment people seen in their countries but possibilities are not limited to it.

Beside low segment foreigners, high-class people also prefer to live and run their business in the country because Turkey offers many amenities from tourism to Exchange, from geographical advantages as being close to the three continents to a multicultural structure inside. If you are a businessman coming from a country that has a valuable currency, you can save a great amount of your money by setting one of your centers in here. For instance, let’s imagine that you will set another center in Spain. You need to pay at least an average of 1000 – 2000 € that makes approximately 7000 – 14.000 ₺ for each person. Administrators, second pilots, high-end workers work these salaries in Turkey so that you can recruit double employees with the same money or save half of it by keeping your same employee that you are going to recruit in another country. Additionally, you will get a qualified employee in here due to being a possibility to share high salaries in a small amount for you besides recruiting multicultural structure in your business that can understand all requirements of three continents. That’s why commercial buildings and all-inclusive residences are common the investment instrument for foreigners.

On the other hand, another advantage is to be one of the most main sectors for the government. When you visit Turkey, especially Istanbul, you see that the city is covered with tall residences found in each town and the buildings continue to be built day by day because the government economically supports companies and becomes a shareholder in this project. It provides to decrease the prices and causes a safer trade for people. When we think about sectors that are ruling the economy of Turkey, Real estate shows undoubtedly itself as one of the important elements in the country. Both Emlak Konut supported by the government and numerous construction companies are the economical locomotives of the country. The sector that has grown up since the early 2000s has recently become a national export product, which is seen as a sought after field by not only local investors but also people who want to invest from all over the world. Additionally, unlike an export product, real estate brings its customers to the country so that it provides income to the plenty of subsidiary sectors and people from household appliances to white goods, from the consumptions of eating and accommodation of a customer in the stage of decision to business lines such as valet, reception, and security. That’s why it includes a huge part of the economy thanks to its commercial vessels.
In this movement, land of empty space and old towns that need to be restored or reconstruct from the beginning consist of a huge piece. Unlike Europe which has a well-organized city structuring, Turkey is in need of the transformation to change its skewed urbanization. So, it creates an opportunity to make constructional activities in both urban and rural areas in the country.

In conclusion, when we point out the subject in the view of Turkish citizens, each person wants to have a house because of not willing to pay for rent. Additionally, as I said at the beginning, another point of view for investment in real estate for local people is to be seen as the easy money without wasting much effort. Because of that reason, numerous local people buy a property and rent it instead of investing this amount in a business, even they have the whole amount that they have. Besides, banks promise you to suitable credits thanks to governmental supports.
All these reasons turn the sector into a big market in the country for worldwide.