Turkey is No Longer the Hottest Overseas Property Market

Turkey is No Longer the Hottest Overseas Property Market

 Are you looking to sell your property in Turkey fast? Turkey had been the star of the overseas property market for over a decade, witnessing double digit growth every year. However, the last couple of years hasn’t really been good for the property market in Turkey.

There was a referendum on April 16 which endorsed a new constitution and declared Recep Tayyip Erdogan as the President of Turkey until 2029 – no elections will be held until that point. The country slides into authoritarian dictatorship under Recep Tayyip Erdogan, a lot of foreign investors have chosen to stay away from the country’s property market.

As a report from the Venice Commission, an organization that advises the European Union’s Council of Europe warns,  “The . . . proposed constitutional amendments would introduce in Turkey a presidential regime which lacks the necessary checks and balances to prevent it from becoming an authoritarian one.”

The Venice Commission goes on to say, “The whole process of parliamentary adoption and submission for approval by referendum of the constitutional amendments is taking place during the state of emergency, when very substantive limitations on freedom of expression and freedom of assembly are in force.”

“In particular, the extremely unfavourable environment for journalism and the increasingly impoverished and one-sided public debate that prevails in Turkey at this point question the very possibility of holding a meaningful, inclusive democratic referendum campaign,” the Venice Commission adds in its report.

This has consequences for the property market as well, as overseas investors are today not so enthusiastic about wanting to buy property in Turkey online. As Aran Hawker, a property developer in Istanbul, says in an interview with the Financial Times, a lot of overseas buyers fear that their assets could be seized by forces loyal to Erdogan, and hence are looking elsewhere

 “My clients are looking actively in the EU, particularly in Portugal, where the golden visa programme [providing residency to anyone spending more than €500,000 on property] provides them with an insurance policy if life gets too dangerous, or unbearable, at home,” Mr. Hawker says.

Even so, there is every chance that you will still be able to sell your property in Turkey fast, and at a good price at that. There is still a lot of demand for properties in Turkey and property prices are still rising fast. This can be attributed to the local buyers, who are wealthier than before and have high disposable incomes, and also to rich Arab investors, who haven’t been put off by the recent political situation in Turkey.

Interest rates have been falling steadily in Turkey since 2009, which means there are a lot of people here who are eager to get their hands on their first home at affordable mortgage rates.

Domestic buyers, not overseas buyers, are today the foundation on which the real estate market in Turkey is built on. That could be one reason why the real estate market in Turkey remains strong, despite the negativity surrounding the nation. 

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