Turkey has a well-established economy, and it is one of the fastest-growing economies for over a decade. It experienced a boom in foreign investment, with $210 billion between 2003 and 2019. While many people are interested in investing in Turkey, they want to know the economic predictions for the future.
Turkey is soon to balance out its currency with new reforms to create new opportunities for investors in real estate and other sectors. The economy of Turkey was expected to grow 6.5% in the first quarter of 2021, rebounding after the COVID-19 pandemic. However, the economy took a positive turn, and it grew by 7% in the first quarter of 2021.
Turkey is on its way to strengthening its economy after going through years of currency crisis with reforms, public savings, and foreign investments. With a gross domestic product of about $736.16 billion, Turkey has one of the most stable economies. It aims to reach the 10th rank by 2023 as it has become one of the largest economies.
Economic Predictions for Turkey in Real Estate Market
Turkey has come a long way in the real estate market course and has been successful in this sector. Through statistics, it has been shown that properties sold in Turkey are increasing day by day, and the real estate market in Turkey has become a competitor to European and Asian markets by attracting investors every day.
With the regulations of the government, getting Turkish citizenship by investment had become more appealing than ever. Investors can get the right to obtain Turkish citizenship by investing $400,000 in the property.
Turkey is an excellent option for foreign investors. With the increase in demand for properties, property prices in districts in Istanbul like Beylikduzu, Esenyurt, and Bahcesehir are expected to rise because of the ever-increasing demand. Statistics show that Istanbul has seen a massive boom in property demand.
In 2020, 40,812 apartments were sold to foreigners in Turkey. Istanbul took first place with 19,175 properties, and Antalya took second with 7,735. Ankara took third with 2,746 properties, and finally, Bursa took fourth with 1340 apartments.
Istanbul is the preferred city for the best type of real estate investment within the budget of many investors. The Turkish real estate market is a safe place to profit and save money. So the property market in Turkey is pretty active and strong right now.
What Are the Economic Predictions for Turkey in the Future?
Property prices in popular areas like Istanbul, Ankara, Izmir, and Mediterranean towns are expected to increase. The currency crisis has come to an end, with everything being balanced out quickly and with growth in the economy impacting property prices positively.
Since foreigners have started purchasing properties in less populated destinations like Bursa, Canakkale, Kayseri, and Sakarya, this situation causes property prices to rise soon as the property market in these areas keeps growing.
The pandemic affected the whole world, including the real estate sector. However, the Turkish real estate market has not seen a significant decrease in demand. The pandemic has caused a reduction in prices, creating a golden opportunity to own property in Turkey.
Opportunities to Invest in the Turkish Real Estate Market
There have been numerous sales in the real estate market by construction companies and sellers who require liquidity. For example, some sellers hand out their property to a tourism company. Since tourism has been affected because of the pandemic, there have been no travelers to other countries. But with good handling of the pandemic in Turkey, the stores and tourist places are still open and active.
Bari Global can serve foreigners who cannot travel due to restrictions. Online payment options and different language team professionals are offered. It is possible to build partnerships without you leaving the country with Bari Global's professional team.
The Economy of Turkey in the First Quarter of 2021
In the final quarter of 2020, Turkey's economy was expected to grow by 6.5% in the first quarter of 2021. According to the media, it's expected to expand by 5.9% in 2021. Thus, we can confidently say the trend is upward in the economic predictions for Turkey in 2021.
Economic predictions for Turkey are pointing to improvements shortly. Therefore, this crisis can be turned into an opportunity since there is sales pressure because of the demand in contraction, causing a severe price reduction pressure on the companies that require financial liquidity.
Economic predictions for Turkey are derived from economic indicators. The economic indicator is the statistics of the economy, which helps you analyze and better understand the financial situation of a country; they help you decide on when to buy or sell a property or any investment, helping you understand the flow of the market along with other financial factors.
Different types of economic indicators are:
- Gross Domestic Product
- The Stock Market
- Consumer Price Index
- Producer Price Index
- Balance of Trade
- Interest rates
- Currency strength
- Consumer spending
- Income and wages
Leader in Terms of General Economy: Turkish Construction Sector
The construction sector in Turkey is vital for the economy and has an exclusive place in any predictions of Turkey. The Turkish construction industry has grown over the years through railway networks and freeway expansion.
Turkey ranks 50th in infrastructure quality after Mexico. Turkey's construction sector rules over Istanbul's skyline, and new building permits are given out. The future of the construction sector mostly depends on the economy of the country.
2020 Construction Sector
Along with other sectors, construction also suffered from the pandemic. However, the market did have a year full of a substantial rise in sales and prices. There has been rapid growth in new residential, commercial, and public buildings in the past years.
Lastly, the government and municipalities' caused a boom in the civil engineering sector, increasing the investment funds for public transport infrastructure.
The market development at the beginning of the year looked quite favorable, surprisingly. Due to a significant value added to the share of 5.6 % in 2019 and loss in various companies, the construction sector will be vital in balancing the development of the Turkish economy at the time of the coronavirus crisis.
Turkish Citizenship by Investment
With the optimistic economic predictions for Turkey in 2021, the advantages coming with Turkish citizenship look more attractive than ever. Getting citizenship in Turkey for foreigners is an effortless option by investing $400.000 or more in a property.
Most investors are from the USA, UK, Iran, China, Iraq, Kuwait, Saudi Arabia, Afghanistan, and Russia, with high levels of investment from Pakistanis and Arabs. The location where foreigners invest in the property depends on their interests.