Turkish lira fluctuations
After lira fluctuations, is real estate investment in Turkey still profitable?
During the last five years, the Turkish lira value has changed a lot. On 22 November 2021, the US dollar exceeded 11.23 Turkish lira. This may make investors ask whether real estate investment is still profitable in Turkey with lira inflation or not. In this article, we tried to answer the most common questions which may matter to real estate investors in Turkey.
How the inflation of the Turkish lira can affect the real estate sector?
The US dollar per Turkish Lira reached 8.32 in September 2021, while in the same month last year it reached 7.377. Despite this inflation of the Turkish lira, the real estate sales by foreign investors have increased by 25.8% in comparison with the same month last year. Does that mean Lira fluctuations have a positive effect on the foreign investor?
We can say that in addition to the facilities and incentives made by the Turkish government to encourage foreign investment, the fluctuations in the Turkish lira have given a lot of advantages to the foreign investor in terms of purchasing power. For example, the properties and investment costs for foreign investors have become cheaper than before, which represents an attractive factor to investment.
To show you what I mean, the Turkish lira to US dollar has changed many times in November, as, on the first of November 2021, the US dollar was about 9.59 Turkish lira and on 20 November it exceeded 11.23.
Thus, when buying an apartment in Turkey worth one million Turkish lira, at the exchange rate of the dollar 9.59 it will be worth about 104.275 dollars. However, when the lira drops to 11.23, the value of the apartment in dollars will reach about 89,047, saving the investor about $15,000.
Therefore, whoever wants to invest in properties in Turkey, has the opportunity now to take advantage of the Turkish lira's depreciation before real estate prices change.
In the long run; Will the investor get more profits?
To answer this question, we will take a look at the Turkish house price index which reached an increase of 33.4% in nominal terms in August 2021 in a comparison with the previous year. That can be evidence of the strength of the real estate sector in Turkey, as the economic crises didn't affect it.
Thus, To make a better profit from your properties, you probably need to wait for several years as investing in real estate is a long-term investment.
Additionally, the Turkish economy is one of the 19 strongest economies in the world and it has the ability to recover quickly from its crises. In short, the profit of real estate investment depends on waiting. The more you wait the more profits you gain.
What if the Turkish Lira improved, what can happen to your investment?
Don't worry, real estate is a growing sector. Therefore, if the price of a property increases, it won't fall again, which can protect you from the loss in your investment.
Baytii tips to take advantage of Turkish lira inflation:
Every investment has risks, and to reduce the risks as possible, investors should search for the best chances in any investment. Therefore, we, in Baytii Real Estate, offer you the best tips to make a great profit from your real estate investment during the lira fluctuations.
1- As we said before, the foreign investor can take advantage of the new exchange rate and buy a property to save costs before the rise in the real estate prices happens as the Turkish lira changes.
2- The foreign investor can buy the property in the Turkish lira, pay a deposit and divide the rest in installments over 24 months to guarantee a greater profit.
For instance, if the installment of the property in Turkey was about 10,000 Turkish lira, 1000 in dollars (when the exchange rate per dollar was 10 Turkish lira) and the following month the exchange rate became 11 Turkish lira per dollar, the monthly installment would be worth 909$. In this case, the investor is saving more than 90$ per month (990 Turkish lira).
3- It is better to consult a professional and reliable real estate company before buying a property. Our company, Baytii for real estate, can provide you with the best real estate consultants who can recommend to you the best construction companies and the best places which can increase your property’s value.
4- Finally, if you want to provide your property for rent, the value of rent is increasing with the dollar.
Exploring Dubai's Real Estate Wonderland
Welcome to the dazzling world of Dubai's real estate market! Whether you're dreaming of a luxury apartment overlooking the marina or a cozy villa in the suburbs, Dubai's property scene is as diverse as it is dynamic. This guide isn't just a bunch of numbers and laws; it's your personal roadmap to understanding and navigating this exciting market.
Can I Really Own a Piece of Dubai?
- Foreigners Welcome: Let’s start with the good news – yes, you, as a foreigner, can own property in Dubai! Imagine having your own space in iconic areas like Palm Jumeirah or Downtown Dubai.
- Full Ownership, No Strings Attached: And guess what? You get to own 100% of your property. No need for a local partner – it's all yours!
The Buzz About Dubai’s Property Market
- Why Everyone's Talking: Apartment prices went up by nearly 9% last year. That's the biggest jump since 2014! Clearly, people are loving Dubai real estate.
- Big Piece of the Economic Pie: Property isn't just buildings and land in Dubai; it's a thriving sector that's booming like never before.
Show Me the Money – Investment Returns
- What’s in It for You?: How does an average ROI of 5-9% sound? That's what you're looking at in Dubai.
- Where to Invest for the Best Returns: If you're looking for the best bang for your buck, places like Dubai Sports City and Silicon Oasis are your go-to spots.
What’s Next for Dubai's Property Scene?
- Luxury in the Limelight: The crème de la crème of Dubai’s property market is its luxury segment. If you've got an eye for the finer things, this is where you should be looking.
- Rentals Rising: Planning to rent out your property? You might be looking at a sweet 3% increase in rents next year.
Your Guide to the Best Neighbourhoods
- Fair and Square Deals: Worried about overpaying? Dubai's property prices are considered fair-valued. That's a relief!
- Top Spots for Property Hunters: From the bustling streets of Business Bay to the serene sands of Palm Jumeirah, we’ve got the inside scoop on where to buy.
Nitty-Gritty of Buying Property
- Freehold Freedom: Yes, in many neighbourhoods, you can own your property outright. Hello, freedom!
- Understanding the Costs: Let's talk about what it costs to buy property here – there are some fees, but we'll break them down for you:
In Dubai, the costs of purchasing property include a 4% Transfer Fee and a Registration Fee. The Transfer Fee, which is typically 4% of the property's value, is usually split equally between the buyer and the seller. This rate may vary in different emirates, with Abu Dhabi having a Transfer Fee of 2%.
So, there you have it – a whirlwind tour of Dubai's property market. Whether you're an investor with an eye on returns or a dreamer looking to call Dubai home, there's something here for everyone.
Palestinian Property Ownership in Turkey 2023: A Comprehensive Guide
Many Palestinians are keen to understand the possibilities and conditions of owning properties in Turkey. This article provides an in-depth look at Palestinian property ownership in Turkey for 2023, considering the latest laws and updates.
What’s New in Palestinian Property Ownership in Turkey?
- Palestinians are entitled to own properties in Turkey under specific conditions, as per Turkish legislation.
- These conditions include holding a Palestinian Authority passport or other specified passports.
- The property area allowed for ownership can extend up to 30 hectares.
Available Property Types for Ownership:
- Residential apartments.
- Luxury villas.
- Commercial shops.
- Offices and warehouses.
Necessary Conditions for Property Ownership:
- Approval from the Turkish Ministry of Interior.
- A valid residence permit.
Required Documents for Ownership:
- Tax number.
- Valid passport.
- Residence permit copy.
- Personal photos.
- Payment receipt for property fees.
Benefits of Property Ownership in Turkey for Palestinians:
- Tax exemptions.
- Eligibility for Turkish citizenship with a property purchase of $400,000.
- Opportunity to obtain a real estate residence.
- Opportunities to establish various investment projects.
- Option to purchase properties on installment.
Real Estate Residence and Turkish Citizenship:
- Purchasing a property worth $200,000 qualifies for a short-term real estate residence.
- Purchasing a property worth $400,000 qualifies for Turkish citizenship.
Baytii Real Estate Consultations: For more information and consultations on property ownership in Turkey for Palestinians, connect with the Baytii team for comprehensive support and up-to-date information.
Discover the renovation projects in Türkiye
Renovation projects in Turkey, particularly in the city of Istanbul, are developmental priorities that draw significant attention due to the city’s strategic location and its civilizational and historical importance. Istanbul extends over vast areas of distinctive land, with the Bosphorus being one of the city's most prominent geographical features, making the areas around it a magnet for tourists and a center for premium services and housing.
Recently, Istanbul has experienced a notable expansion beyond the borders of the Bosphorus surroundings, where Ataturk Airport was previously situated, creating a disparity in neighbourhood quality, ranging from aristocratic to less organized communities. Over time, these latter areas have become disorganized and a haven for gangs and lawbreakers.
Istanbul is seismically active, which necessitates that concerned authorities take decisive preventative measures. The most important of these is the construction of residential infrastructure capable of withstanding earthquakes, which is significantly lacking in older buildings.
In response to these challenges, the Turkish government has adopted an ambitious plan to rehabilitate these areas, relying on partnerships with investors and real estate developers under government supervision and incentives. The plan includes:
1- Allowing the real estate developer to transform a small building into a residential tower with more than ten floors.
2- Exempting the developer from paying for the land, with the responsibility of covering demolition and reconstruction costs only.
3- Providing new apartments within the tower for the original residents, with the possibility of selling additional housing units for profit.
4- Exempting the real estate developer from government taxes.
5- Exempting investors in reconstruction projects from taxes related to registration and value-added tax.
To protect the rights of original residents and investors, the Turkish government has set out a series of conditions and standards that real estate developers must adhere to in order to obtain the necessary permits for reconstruction projects. These conditions include:
- The real estate developer must have completed residential projects of similar or larger scale.
- Full reconstruction costs must be deposited into a state-guaranteed account, allowing the developer to withdraw funds gradually with each successfully completed construction phase.
- Provision of alternative housing for the original residents during construction until the delivery of new apartments.
These projects represent some of the most important investment opportunities in Turkey, with clear results as seen in the transformation of the Kadiköy district from a slum into one of the most beautiful areas in Istanbul and the world in a relatively short time.
These projects underscore the vital role that reconstruction can play in improving the quality of urban and social life, reinforcing Istanbul's position as a modern city that embraces heritage while keeping pace with progress.
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