Real estate investment in Turkey is considered one of the most important and popular investment sectors. The government has set its vision for this sector in 2023, especially as it coincides with the 100th anniversary of the establishment of the Republic of Turkey (1923).
A hundred years since the establishment of the Republic of Turkey: The Republic of Turkey was founded on October 28, 1923, by Mustafa Kemal Ataturk after the collapse of the Ottoman Empire and the victory over Western powers and their ambitions on Turkish territories during the War of Independence. The centennial anniversary of the Republic's founding will be celebrated in 2023.
The Turkish government is preparing to launch several development projects in various provinces, especially in the economic capital, Istanbul. Let's review some of these projects and their significance.
Istanbul International Financial Center:
Forecasts and official statements indicate that the doors of the Istanbul International Financial Center, also known as the "Istanbul Finance Center" or "Istanbul International Financial City," will be opened in the early months of 2023. It will be located in the Atasehir district of Istanbul's Asian side. The aim of establishing this center is for it to become the financial and business capital of Turkey and a financial link between the three continents: Europe, Asia, and Africa. The headquarters of the Central Bank of Turkey will be moved to the Istanbul International Financial Center, and branches of Turkish and foreign banks, exchange companies, and economic and business institutions will be opened there.
Istanbul Airport:
The first phase of Istanbul Airport was inaugurated on the 95th anniversary of the Republic of Turkey's establishment in 2018. The construction of runways for Istanbul Airport will be completed by 2023, making it one of the largest airports in the world. It will have a capacity to accommodate up to 250 million passengers annually, and its runway will be able to handle around 500 aircraft at the same time.
Basaksehir Medical City:
President Recep Tayyip Erdogan inaugurated the first phase of this city in mid-2020, and the subsequent phases are planned to be completed by 2023. When finished, Basaksehir Medical City will be the largest medical city in Turkey and Europe, and the third largest in the world.
Istanbul Canal:
The groundbreaking for the Istanbul Canal project took place in June 2021. According to official statements, the canal is scheduled to be opened in 2027. However, significant progress in construction and excavation is expected by 2023, which will increase the investment value of lands and areas surrounding the canal. The geographical plan of the canal shows its extension from the northern part of Lake Kucukcekmece to the shores of the Black Sea, connecting it to the Sea of Marmara, creating a "second Bosphorus" to reduce the number of commercial ships passing through the Bosphorus Strait.
What is the relationship between real estate investment and Turkey's vision for 2023?
Turkey's Vision 2023 is a backbone for real estate investment in the country, as vital government projects and development initiatives will boost the momentum of real estate investment and attract more foreign investors, elevating the importance of this vital economic sector. This will significantly increase the value of lands and properties, particularly in areas surrounding major Turkish projects, such as the Atasehir district hosting the Istanbul International Financial Center, the banks of the Istanbul Canal, Basaksehir area, and Arnavutkoy area.
Does real estate investment in Turkey get affected by election results?
Many people are awaiting the results of the Turkish presidential elections, scheduled to take place in June 2023, believing that the outcomes will have a negative or positive impact on real estate investment in Turkey. They think that this sector might decline if the ruling party in the country changes.
History and events indicate that Turkey is a democratic state that has been experiencing over 30 years of political, economic, and security stability. Many analysts believe that any change in the current form of governance will not harm real estate investment in the country because this sector is protected by Turkish laws and the constitution.
What are the main concerns of foreign investors in Turkey?
The greatest fear of foreign investors in Turkey is the loss of their investments and funds in the Turkish real estate market due to several factors such as the depreciation of the Turkish lira, high inflation rates, and the impact of political and diplomatic relations between Turkey and other countries. These factors make the investor hesitant to take risks.
The obstacles that the Turkish economy has faced since 2016, including the failed coup attempt, the speculation against the Turkish lira in 2018, the Turkish Gulf crisis, and the subsequent events, such as the COVID-19 pandemic and the Russian-Ukrainian war, as well as the inflation crisis, have proven that the Turkish economy, of which real estate investment is one of its pillars, is strong and resilient.
What supports the previous theory is that the growth of this sector continues to this day, and Turkey is a member of the G20 and is among the countries with the strongest economies in the world.
This is because the Turkish economy is built on exports, investment, and employment, not solely on the Turkish lira and inflation rates. This particular aspect significantly contributes to reassuring foreign investors that their rights and funds are protected in Turkey and that they will undoubtedly achieve substantial profits in the medium and long term.
Future expectations for real estate investment in Turkey:
All indicators, especially the crises that Turkey has faced, including the declining inflation rate, suggest that the future of real estate investment in Turkey will be prosperous and thriving, meeting the aspirations of real estate investors in Turkey.
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