Important Information About the Turkish Real Estate Sectorby alex donvour Economic consultant
The real estate sector in Turkey has witnessed a major transformation in the field of attracting investment opportunities for investors. While the US and European real estate markets are negatively impacted by the economic crisis and the global financial crisis, Turkish real estate markets are witnessing a strong recovery. It is also noted that while real estate markets throughout Europe are experiencing a significant drop in demand and a decline in real estate prices, Turkish real estate markets are witnessing a big rise in demand, where we notice an increase in the sale of housing units according to statistics published by the Turkish Statistical Institute, in some periods about %20 have risen compared to similar periods of the past years. This shows that the Turkey real estate sector has high and exceptional growth potential.
The Turkish real estate sector offers great investment opportunities for those wishing to invest in it, thanks to the housing factors which are witnessing a positive growth with the country's growing economy. As the increase in industrial and commercial activities in many parts of the country contributed to the increase in demand for workplaces and housing units significantly.
What are the strength and weakness points of the Turkish real estate sector?
Sound banking system.
The mortgage system has been newly applied.
The presence of excellent construction companies that are worldly famous.
The lack of suitable land and their high prices, especially in Istanbul city.
Rise in the number of old properties that are not suitable for the mortgage system.
What are the expected opportunities in the Turkish real estate sector?
- The demolition of illegal buildings and the constructing new buildings of high quality in the context of efforts to rebuild the structure of the city through the real estate development.
- Growth susceptibility associated with the increasing demand and low supply of housing units.
- Increasing the quality of the property according to the laws of seismic management.
- The increasing need for housing and workplaces.
Brief information about the real estate taxes in Turkey:
Corporations Tax: imposed on the profits obtained from real estate transactions and rental income with a ratio of %20. This includes capital gains.
Income Tax: Individuals who earn income from rental property are charged with paying income tax gradually rising from %15 to %35.
VAT Tax: between %1, %8 and %18 depending on the type of products or services provided, imposed on the residential properties of less than 150 square meters with %1 and on the rest of the property with %18.
Real Estate Registration Fees: These fees are paid at the time of the sale and purchase of the property, and are imposed on the two parties (seller and buyer) by %1.5.
Real Estate Tax: According to the percentages determined in 2016, real estate tax is charged with %0.1 on the residential buildings, %0.2 on other buildings (factories, offices, etc.), %0.1 on land and %0.3 on the real estate. These percentages will be redoubled if the property is located within the boundaries of the city center.
Created on Sep 25th 2018 09:19. Viewed 172 times.