Istanbul 2022: Why has the house price risen?
Istanbul’s dramatic house price rises are due to a few factors. The first is the lack of new stock. Sales are mostly made up of resales or old stock. Old stock doesn’t appreciate as much as new stock. The Bomonti neighborhood of Sisli, however, has experienced a dramatic increase in its price — more than 50% in USD terms.
Turkey’s Real Estate Market is Growing Faster in the Primary Market
The government has made it easier for foreigners to obtain citizenship in Turkey and buy real estate. This has resulted in a rise in Turkish real estate sales. Demand has also been sparked by a new tax exemptionfrom VAT and lower Land Registry fees. Foreigners used to have to pay $1million to buy property in Turkey before this. This year, however, the threshold was reduced to $250,000. The minimum threshold for citizenship was also set at $400000 in May.
Turkey’s real estate market is also being pushed higher by new infrastructure projects. One of these projects is the construction of Istanbul Canal. These projects will boost tourism in the region. Turkish real estate prices are expected to rise significantly in the next five-years.
The primary market is seeing rental prices rise faster than the secondary market.
According to a recent government study, rental prices are rising faster than the national average. For example, Istanbul’s rental prices have more than doubled in the past year. This is due to the country’s recent rise in inflation, which has risen to over 70%. However, there has been some debate about the reliability of official statistics due to the increase. Some experts are confident that the data is reliable. Others have doubts.
Istanbul is home to approximately 15 million people. This number is expected to grow over the next few decades. Turkey’s favorable demographics will drive the city’s urbanization, and help to increase its population. The World Bank reports that Turkey has a fertility rate in the range of 2.1 children per female, which is comparable to Greece.
Turkish Government increased the investment limit for Turkish citizens by real estate
Turkish citizenship through investment is possible by investing in real property worth at least US$400,000. A person must also open an account in Turkey. After all the paperwork has been completed, the government will screen the application. Sometimes, the government may ask for an interview. Once the application is approved, citizenship documents will be issued to the applicant and their dependent family members.
The maximum investment is US$400,000 for each applicant and US$145,000 for a family of four or five. To be eligible, the investment must be kept for five years. If the applicant is married or has minor children, the investment limit will be increased. The applicant must make the required investment in a Turkish real-estate project that has been approved by the Turkish government to obtain citizenship.
Rent Prices: The Impact of Price Increases
Many economists blame an increase in inflation for the decline of the Turkish lira. The latest data shows that Turkey’s average rent rose by 19.6% per year between March 2022 and March 2022. This is more than the 1.3 percent increase in EU rents over the same time period. This is despite Turkey’s rental laws that favor landlords over tenants.
The Turkish rental housing market suffered from the COVID-19 pandemic. The average rent price per unit was lower before the pandemic. It rose after the pandemic. This is probably due to the unpredictability of the environment after the pandemic.