Türkiye's strategic location, where Europe and Asia converge, has captivated travelers from both continents for centuries. This rich history, marked by the ebb and flow of empires, has left an indelible mark on the country's landscape and culture. Today, Türkiye stands as a captivating blend of ancient allure and modern vibrancy, offering visitors an unforgettable glimpse into the crossroads of civilizations.
How many tourists come to Turkey every year?
Before COVID-19, In 2019 the country received around 52 million tourists, making it the 6th most visited country in the world.
After the country went into quarantine during COVID-19, the numbers in 2020 & until the summer of 2021 decreased to a combined total of 19 million tourists.
Turkey, however, came back to record numbers after relieving COVID measures and allowing travel in July 2021 which created a stampede of people towards major cities in Turkey (such as Ankara, Istanbul, Antalya, Alanya, Izmir, Trabzon, & Konya). These arrivals were divided between business, pleasure, and education.
The percentage of tourists increased a staggering 82% after the COVID-19 lockdown and increased even more in the first and second quarters of 2023.
What types of tourism are available in Turkey?
The Turkish government, with its separate entities, worked tirelessly to open up the country to new forms of tourism to attract even more people by providing a dish for every taste.
The below types are the forms of tourism that have the highest attraction rate to travelers:
- Historical tourism: Turkey is home to many historical sites, such as the ancient cities of Ephesus and Troy.
- Cultural tourism: Turkey is a diverse country with a rich culture, which can be experienced through its traditional music, dance, and cuisine.
- Beach tourism: Turkey has a long coastline along the Mediterranean, Aegean, and Black Seas.
- Nature tourism: Turkey is home to a variety of natural attractions, such as the Cappadocia region, which is known for its fairy chimneys.
- Real Estate tourism: Being a tourism magnet, Turkey, especially Istanbul, attracts a lot of investors looking for homes, apartments, lofts, penthouses, or villas in the city and country to live in once per year or use to get a high return on investment.
- Health tourism: Health tourism is huge in Turkey. Turkish doctors and hospitals have become very famous in the past 10 years when it comes to aesthetic surgery, as they are low in cost than anywhere else in the world and they deliver much better service and support, before, during, and after the surgeries, as well as elite results.
Adding to the above attractions, the government is attracting sports tourism by setting up the Turkish Grand Prix with its last edition hosted in 2022 as well as the 2023 UEFA Champions League final between Manchester City and InterMilan clubs.
Types of Investment in Real Estate in Turkey
The below titles are the main types of investments in Istanbul:
A. Long-Term Real Estate Investment
The first type of real estate investment found all over the world is Long Term Real Estate Investment.
The long-term investment is buying a property, which could be an apartment, villa, home office, or commercial shop, and renting it to create a steady flow of income. The return on investment for this purchase is around 7-8% annually before taxes. (For more details about taxes on your property check our blog about Tax & Turkish Real Estate)
- Areas suitable for long-term real estate investment: The areas that are suitable for this type of investment are residential areas for apartments, luxurious urban areas for villas, business districts for home offices, and commercial shops. In our portfolio, we as Istanbul Property offer these options in the areas such as:
- Beylikduzu
- Kucukcekmece
- Buyukcemece
- Basin Ekspress
- Bahcesehir
- Basaksehir
- Mezitli in Mersin
- Antalya.
- What long-term investment provides:
- Potential for high returns: Real estate has historically outperformed other asset classes such as stocks and bonds over the long term.
- Income generation: Rental properties can generate a consistent stream of income that can be used to pay down debt, fund retirement, or simply supplement your current income.
- Real estate values tend to rise over time, which can result in significant capital gains when you sell your investment.
- Tax advantages: Real estate investors can benefit from a variety of tax advantages, including depreciation and passive income deductions.
B. Short-Term Real Estate Investment
This term is relatively new in the real estate. The idea behind this was restricted only to hotels in metropolises where they would rent out rooms on a nightly basis. This idea became more popular with apartments for older people in the city center, they would charge a small nightly fee for travelers, which would help them maintain their houses and create a steady flow of money. This idea later became a multibillion-dollar industry using the Airbnb website, and many websites followed suit and started listing full apartments.
In Turkey, short-term rental could generate anything between 9% and 15% depending on many variables such as location, season, furniture, views, proximity to transportation, and facilities provided.
- Areas suitable for short-term real estate investment: The areas that are suitable for this type of purchase are central, historical areas, and areas with access to natural attractions such as beaches, lakes, mountains .. etc Inside Istanbul, short-term investment suitable areas are:
- Besiktas
- Taksim
- Sisli
- Fatih
- Eyup Sultan
In Muğla the attractive areas for short-term investment are:
- Fethiye
- Ölü Deniz
- Marmaris
C. Capital Appreciation in Turkish Real Estate Investment
The increase in the value of an asset over time is known as capital appreciation. Capital appreciation refers to the increase in the value of a property over time in the context of real estate investment.
In recent years, capital appreciation in Turkish real estate investment has been substantial.
According to the Central Bank of the Republic of Turkey, real estate prices in 2022 will be 41.1% higher than in 2021. The Eurostat House Price Index shows the strongest dynamism.
What Are The Projects That Are Suitable for Capital Appreciation?
Real estate projects that are subject to future appreciation are usually under construction developments, however, not every building constructed can be considered a safe place to invest your money. According to our business development managers here at Istanbul Property, the below criteria make a property suitable for capital appreciation in the long run:
- Location
- View
- Demand in the area
- Construction Company
- Government infrastructure plans
- Legal Status of the project (Title deed ready or not ready)
Taking the above criteria into consideration, we asked our sales experts here at Istanbul Property about their favorite areas for capital appreciation, and according to their answers, we have compiled the below list of locations:
- Kadikoy: This district is a dynamic blend of history and contemporary. While it has numerous ancient structures, that are being renovated, the government is also removing some of the city's older chaotic low-rise buildings to make space for more environmentally friendly areas. Investors in Kadikoy estimate an increase of 18-22% in the price of properties after the completion of construction and an increase of more than 35% after 3 years from delivery.
- Beyoglu: Previously dubbed as Pera, this district is the heart of modern-day Istanbul, hosting more than 2 million people daily locals and tourists. The ready properties and apartments in this area can start at 450,000 USD (as of July 2023). This is why people are interested in getting their hands on anything that is under construction in the Beyoglu area.
- Buyukcekmece: This is an Istanbul suburban area, It is located towards the west side of the city, around 45 KM from Taksim. Buyukcekmece is a luxurious villa area with more than 6,000 villas spread across this small hill overlooking the Marmara Sea and the Buyukcekmece Lake. It is a quiet area filled with green spaces and is the center of focus for a lot of the government’s efforts in supplying the suburbs with excellent infrastructure. As of July 2023, the lowest price for a 1-bedroom apartment with a full sea view in a nice project is around 180,000 USD.
Istanbul Property has a portfolio of over 400 worthy development and construction projects divided into ready-to-move and under-construction. You can reach our sales experts via our website, and they will identify your needs, narrow down the options, and send you the most suitable properties available at the highest discount in the market.