Turkey is one of the most promising real estate markets in Europe, and the mantra "Location, Location, Location" is particularly applicable to this country. Strategically located at the crossroads of Europe, the Middle East and Central Asia and home to nearly 81 million people, Turkey offers great opportunities for real estate developers and investors by combining a large construction sector and growing business and industrial output.
Key facts and figures in the Turkish real estate sector include:
• The real estate sector has accounted for some 8.4 percent of GDP over the past decade. On the investment side, foreign direct investment in real estate and construction was $ 10.8 billion, representing $ 4.6 billion (42.9 percent) of total GDP in 2017.
• Urban renewal and major projects dominate the agenda, especially in Istanbul in the foreseeable future. Projects in the city include Marmaray, Canal Istanbul, the Yavuz Sultan Selim Bridge, the Eurasia Tunnel, the three-storey Grand Istanbul Tunnel and Istanbul's third airport.
• The urban renewal and development initiative will comprise around 7.5 million residential buildings. In total, a $ 400 billion budget has been allocated to this initiative, with the private sector taking the lead.
• According to the Knight Frank Global House Price Index, Turkey ranked first in the 56-Location Index in Q3 2017 in the annual price hike. With a year-on-year increase of 11.1 percent, Turkey was one of the world's leading real estate markets ahead of Australia, Latvia and India.
• The total number of homes sold in the Turkish real estate market in 2017 was 1.4 million; Similarly, the sale of real estate to foreigners began to increase after the abolition of the principle of reciprocity in 2012. In 2017, 22,234 homes were sold to foreigners in Turkey, an increase of 22.2 percent year-on-year. In terms of real estate sales to foreigners, Istanbul was the leading province with 8,182 sales in 2017, followed by Antalya with 4,707, Bursa with 1,474 and Yalova with 1,079 sales.
• At the end of 2017, the existing class A office space in Istanbul exceeded 5.3 million square meters spread over 249 office buildings. The annual growth in leased office space averaged around 12 percent between 2010 and 2017. More than 1.2 million square meters of office space are under construction, and it is expected that by the end of 2020 all Class A office space supply will reach a gross leasable area of nearly 7.1 million square meters.
• There are currently 401 shopping centers in Turkey with a total leasing area of 12.2 million square meters in operation. 114 shopping centers in Istanbul with a total leased area of 4.2 million square meters account for 34 percent of the leasing space in shopping centers across the country.
• According to the JLL Cross Border Retailer Attractiveness Index 2016, Istanbul is the sixth most attractive market in Europe after London, Paris, Moscow, Milan and Rome.
• Despite the growth in recent years, Turkey is still below the average of the total leasing space per person in Europe. So there is still potential for further retail growth in Turkey.
• At the end of 2016, according to the Ministry of Culture and Tourism, there were 3,641 hotel operations with a total of 426,981 rooms in operation. 5-star hotels account for 42.7 percent of the hotel portfolio, 4-star hotels 24.8 percent and 3-star hotels 12.6 percent of the market share.
COUNTRY, CITY, REGIONS
▸ Company Locations and Countries
Turkey - Istanbul
1. Region Mediterranean Region 2. Eastern Anatolia region 3. Aegean region 4. Southeast Anatolia region
5. Central Anatolia region 6. Black Sea region
7. Marmara region