Real estate investment and economic growth in Turkey… What is the relationship between them?
Real estate investment in Turkey has many important aspects intended to encourage foreigners to invest their money in real estate sector, including great facilities and tax reductions, so that the profitable return from real estate investment in Turkey is almost guaranteed. We find that recent years have witnessed a significant improvement in the field of real estate in Turkey, whether The reason for buying for the sake of investment or for a holiday or housing and stability, especially with the growth of the economy – in which real estate growth contributes greatly – and the increase in profit and trade opportunities, along with a number of other factors, what are the main aspects of real estate investment in Turkey, and how it contributes to the movement of economic growth?
The main types of real estate investment in Turkey can be mentioned into 3 types, including:
- Investment in commercial real estate:
It is investing in commercial offices or any type of property that is not intended for housing, such as shops or administrative offices, and Istanbul is one of the most famous cities in which this type of real estate is widely available.
- Investment in residential real estate:
It is a type of real estate investment that is growing significantly, which contributes significantly to the movement of Turkish economic growth, and this type is specialized in real estate for residential purposes such as villas and houses, and is available in all cities of Turkey.
- Investment through real estate development:
It is one of the most important types that clearly contribute to the Turkish economic growth movement and its idea is based on buying a property in a project under construction in a vital area, and then selling the property after the project ends at a higher price.
Economic growth movement in Turkey
Turkey is witnessing a great demand from foreigners and Arab communities, especially to buy real estate and real estate investment, because of its many advantages. Its contribution also to raising the economy, which made the Turkish government pay great attention to the real estate investment sector, so we find that many investors doubled their money from 2019 to 2021, so that the profit difference exceeded 100%, as representatives of the real estate sector in Turkey explained that real estate sales figures were recorded Last year, a historic record number of 1,499,316 homes were sold across the country.
The Turkish economy… the second highest growth rate in the world
The Turkish economy also achieved record growth rates during the second quarter of this year, reaching about 21.7%, thus making Turkey the second globally among the most developed economies during the second quarter of 2021, as the growth figures in the second quarter demonstrated the resilience and strength of the Turkish economy.
At a time when the Turkish economy grew at a rate of 1.8% over the past year, avoiding a contraction in the largest global economies due to the Corona virus pandemic, the credit rating agency, “Moody’s”, revised its forecast for the growth of the Turkish economy from 5% to 6% for the current year, and raised its forecast for economic growth in Turkey for 2022, from 3.5% to 3.6%, and Goldman Sachs raised its forecast for the growth of the Turkish economy this year, from 7.5 to 9.5%.
Last year, the $720 billion economy grew by 1.8 percent, making it one of the few economies that avoided the downturn caused by the spread of the “Covid-19” epidemic, and thus indicators show that the Turkish economy with the contribution of investment in the real estate sector along with the rest of the aspects will continue to grow and prosper for the coming periods.