Real Estate in Turkey
Turkey's real estate market is one of the most promising in Europe, and the maxim "location, location, location" rings especially true for this country. Strategically located at the intersection of Europe, the Middle East, and Central Asia, Turkey is home to 85 million people and offers great opportunities for real estate developers and investors. This is because Turkey has a large construction industry, and its commercial and industrial output is growing.
- FDI inflows in Turkey increased to USD 13.3 billion, while real estate FDI was USD 5.6 billion, or 42.2 percent of total FDI in 2021.
- Particularly in Istanbul, urban renewal and megaprojects will dominate the agenda for the foreseeable future. Marmaray, the Yavuz Sultan Selim Bridge, the Eurasia Tunnel, and Istanbul Airport are examples of projects in the city.
- The Urban Renewal and Development initiative will encompass 7.5 million housing units. The initiative has a budget of USD 400 billion, with a large contribution coming from the private sector.
- The total number of homes sold in the Turkish property market was 1.4 million units in 2021. Sales of real estate to foreigners began to increase following the abolishment of the reciprocity law in 2012. In 2021, a new record was set with the sale of 58,576 homes to foreigners in Turkey. Regarding home sales to foreigners, Istanbul was the top-performing province with 26,469 sales in 2021, followed by Antalya with 12,384 sales, Ankara with 3,672 sales, and Mersin with 2,513 sales.
- By 2021 year-end, the existing Grade A office stock in Istanbul will have exceeded 5.8 million square meters. There is more than 1.6 million square meters of office space under construction, including the Istanbul Finance Center (IFC), and it is expected that the total grade A office space will reach almost 7.4 million square meters of gross leasable area by year's end in 2022.
- 453 shopping centers are operational in Turkey, with a total gross leasable area of 14 million square meters. 134 shopping centers in Istanbul with a total gross leasable area of 5.2 million square meters represent 37 percent of the total leasable shopping center area in Turkey.
- Total logistics real estate supply in the Marmara Region, including Istanbul and Kocaeli, is 10.2 million square meters as of 2021 year-end. During 2021, 233,000 square meters of logistics leasing transactions were completed.
