Thinking of buying or selling a property in Turkey? The Turkish property market has been on a steady rise in recent years, and this trend is expected to continue in 2023. There are a number of factors contributing to this growth, including:
- A strong economy: Turkey’s economy has been growing steadily in recent years, and this is creating a positive environment for the property market.
- Low interest rates: Interest rates in Turkey are currently at a record low, which is making it more affordable for people to buy property.
- A growing middle class: Turkey’s middle class is growing rapidly, and this is creating a larger pool of potential buyers for property.
- A favorable exchange rate: The Turkish lira is currently trading at a favorable exchange rate against many other currencies, which is making Turkish property more affordable for foreign buyers.
All of these factors are expected to contribute to continued growth in the Turkish property market in 2023. However, there are a few potential risks that could dampen this growth, such as:
- Inflation: Inflation in Turkey is currently at a high level, and this could erode the purchasing power of buyers.
- Political instability: Turkey has been experiencing some political instability in recent years, and this could make some buyers hesitant to invest in Turkish property.
- Economic slowdown: If the Turkish economy were to slow down, this could also have a negative impact on the property market.
Overall, the outlook for the Turkish property market in 2023 is positive. However, there are a few potential risks that could dampen this growth.
Here is a more detailed look at each of the factors that are contributing to the growth of the Turkish property market:
A strong economy
Turkey’s economy has been growing steadily in recent years. In 2022, the Turkish economy grew by 7.3%, which was the fastest growth rate in the G20. This growth is being driven by a number of factors, including:
- A strong manufacturing sector: Turkey’s manufacturing sector is one of the largest and most competitive in the world. In 2022, the manufacturing sector grew by 10.7%.
- A growing tourism industry: Turkey is a popular tourist destination, and the tourism industry is a major driver of economic growth. In 2022, the tourism industry grew by 20.1%.
- A growing foreign direct investment (FDI) inflows: Turkey is a popular destination for FDI, and this is also contributing to economic growth. In 2022, FDI inflows to Turkey reached $20.4 billion.
Low interest rates
Interest rates in Turkey are currently at a record low. In 2022, the Central Bank of Turkey (CBRT) cut the benchmark interest rate from 19% to 14%. This is making it more affordable for people to borrow money and buy property.
A growing middle class
Turkey’s middle class is growing rapidly. In 2022, the middle class accounted for 40% of the population. This is creating a larger pool of potential buyers for property.
A favorable exchange rate
The Turkish lira is currently trading at a favorable exchange rate against many other currencies. This is making Turkish property more affordable for foreign buyers.
As mentioned above, there are a few potential risks that could dampen the growth of the Turkish property market in 2023. These risks include:
Inflation
Inflation in Turkey is currently at a high level. In 2022, inflation reached 36.08%. This could erode the purchasing power of buyers and make it more difficult for them to afford property.
Political instability
Turkey has been experiencing some political instability in recent years. This could make some buyers hesitant to invest in Turkish property.
Economic slowdown
If the Turkish economy were to slow down, this could also have a negative impact on the property market.
Overall, the outlook for the Turkish property market in 2023 is positive. However, there are a few potential risks that could dampen this growth. Contact us to buy or sell property in Turkey.
