Buying Property in Turkey! Is This the Right Time or a Risky Investment to Avoid?

The real estate market in Turkey is currently facing numerous challenges, starting with an economy impacted by a massive earthquake that hit the country last year, alongside high inflation. This has led to interest rates being raised to a record high of 50%, resulting in a near-total halt of the real estate sector. Additionally, recent legal changes, such as raising the minimum investment for Turkish citizenship to $400,000 and for real estate residency to $200,000, have caused a decline in the number of foreign investors.

To answer the question: is now the right time to buy property in Turkey, or not? We need to analyse two aspects: the internal Turkish situation and the regional and global outlook.

The internal outlook for Turkey is relatively positive. Economically, key indicators have started to show improvement. Turkey’s foreign reserves have grown from a deficit to over $140 billion, which has led to a gradual decrease in inflation. Interest rates are also expected to start declining gradually at the beginning of 2025. However, this decrease in interest rates will not have an immediate significant impact on the real estate market, as the reduction is expected to be modest and may not provide a substantial boost right away. Instead, the effects are likely to become more noticeable in the second half of 2025, with the real estate sector regaining strength between 2026 and 2027. Currently, prospective buyers can find attractively priced apartments, often lower than pre-2023 prices, alongside unique offers and incentives from construction companies that have not been common in Turkey before.

On the regional and global front, the outlook is more pessimistic. The region is fraught with conflicts, and the global economy is grappling with crises amid fears of larger conflicts involving major powers. Such a situation is expected to impact the real estate sector in Turkey and other countries negatively, with the degree of impact depending on how events unfold. Perspectives are divided here. One view is that holding cash provides flexibility, allowing individuals to adapt to economic changes, avoid financial crises, and seize opportunities as they arise. The other perspective argues that in times of severe crises, cash can be at risk of losing value due to inflation, especially if the situation spirals out of control. Real estate, on the other hand, is seen as a safer asset; even if its value declines, it remains a tangible asset and will likely appreciate over time.

I would advise real estate investors to consider purchasing property in Turkey now to take advantage of the favorable prices and incentives, but only on one condition: having the financial stability to avoid needing to sell the property urgently, with the ability to hold the investment not for months or a single year, but potentially for several years if necessary. For those aiming to buy and then sell quickly for immediate profit, this would be a high-risk strategy with a strong chance of loss.