Discover the renovation projects in Türkiye
Know in details what is the renovation projects in Türkiye, and how it works!
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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Analysis of the Turkish Real Estate Market: Outlook for the Next Five Years
Current data indicates that the Turkish real estate market will continue to grow in nominal prices over the coming years. However, it’s important to distinguish between nominal growth and real growth. While Turkey recorded one of the highest annual nominal price increases globally (about 46.4%), real prices have declined by about 14% per year due to high inflation. In other words, although property prices have risen sharply in Turkish lira, the actual purchasing power of these assets has declined. Still, nominal prices are expected to continue rising due to strong domestic demand and limited supply, while real price increases will depend on inflation control.
From a macroeconomic perspective, the Turkish government has shifted to tighter fiscal and monetary policies since mid-2023 to fight inflation. The official Medium-Term Economic Plan targets a reduction in inflation from over 50% to single-digit levels (around 9.7%) by 2026. Credit rating agencies have responded positively—both Fitch and S&P upgraded Turkey's ratings in 2024, reflecting improved fiscal discipline and growing reserves. These developments suggest that, if economic reforms stay on track, we may see a gradual decline in inflation by 2030, leading to greater currency stability and restored investor confidence.
On the supply and demand side, housing production currently falls short of meeting Turkey’s annual housing needs. Industry experts estimate that only about half the annual housing demand is being met, due to rising construction costs and fewer new housing starts. This supply shortage will likely continue to support property prices despite economic fluctuations. On the other hand, foreign demand peaked in 2022 but dropped significantly in 2023–2024 due to new residency restrictions and a higher minimum investment amount for Turkish citizenship (from $250,000 to $400,000). In 2024, foreign purchases accounted for just 1.6% of total property transactions, down from 3–5% in prior years. However, this demand is expected to recover gradually as inflation cools and the lira stabilizes.
Looking ahead to 2030, the Turkish real estate market is expected to remain strong due to fundamental drivers like a large, young population, urban migration, continued infrastructure investments, and tourism in coastal cities. If the government succeeds in reducing inflation to single digits, investors may enjoy both nominal and real capital gains. If inflation persists, price gains may remain largely nominal, offering limited real return for investors. Overall, the prevailing outlook is that the Turkish market will experience greater economic stability and stronger investor confidence by 2026 and beyond.
Dubai Residential Real Estate Market Forecast to 2040
Residential real estate prices in Dubai have seen strong increases recently, driven by high demand from both local and international buyers. There was a year-on-year increase of about 20% in home prices during the third quarter of 2024, and the average sales price in 2024 rose by about 20% to approximately 1,597 AED per square foot. These significant increases came after a period of moderate growth between 2018 and 2020, confirming the return of momentum to the Dubai real estate market after the COVID-19 pandemic.
Prices are expected to continue their upward trajectory in the medium term, but at a more stable pace. Knight Frank estimates an additional rise of about 8% in 2025, and local real estate developers expect annual price increases of between 5-8% in the coming few years. These forecasts are based on strong and sustainable demand but also consider an increase in supply and a better market balance. Over the long term up to 2040, prices are likely to continue rising supported by population growth and planned major projects, although there may be short-term correction cycles. For example, villa prices currently exceed the previous peak levels (in 2014) by more than 30%, which means the market may experience a relative slowdown or minor correction after periods of significant increase before continuing its sustainable upward trend.
Why Invest in Dubai: Top 9 Reasons
Dubai has emerged as one of the most attractive real estate investment destinations in the world. Known for its tax-free environment, high returns on investment, and luxurious lifestyle, Dubai continues to draw investors from all over the globe. Whether you are looking to diversify your investment portfolio or purchase a property for personal use, Dubai offers numerous advantages.
In this article, we explore the top nine reasons why investing in Dubai real estate is a smart choice, the best areas for investment, the future of Dubai’s property market, and how Baytii can help you invest in Dubai seamlessly.
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November 05, 2023
One of the best investments in Istanbul 👍
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