Along with housing projects that will be liveable for 12 months in the Aegean and Mediterranean, the sector is preparing infrastructure for new investments that meet the housing sector and tourism on a common ground. We spoke with Servotel Managing Partner Ayla Heyfegil about new trends in the sector.
The Turkish real estate market, which is open to new developments and which analyses the expectations of investors well, is getting prepared to meet new investment trends in 2021 and beyond. In the new period, where domestic and foreign investments in the Aegean and Mediterranean that will be liveable for 12 months are expected to come into play, the sector is preparing infrastructure for new investments in which the housing sector and tourism meet on a common ground. Servotel Manager Partner Ayla Heyfegil explained the issue that will feed both the housing market and tourism together and which locations and housing styles foreign buyers prefer in Turkey…
What new trends will we talk about in the real estate sector in Turkey in 2021 and beyond?
Investments in housing, for domestic and foreign buyers, that can be lived for 12 months and especially can be integrated with outdoor space will be made. I’m on the Board Of Directors Of The Tourism Investors Association. Before the pandemic, we submitted a report to the Ministry of Tourism for the Association’s 2030 vision. In the report, we made a proposal to reserve 20-25% of our hotels as residences and sell these residences to customers who come as tourists. In the process that will bring new cooperation of construction and tourism companies to the agenda, tourists who own housing in this way will be able to benefit from the garden and social areas of the hotel, the facility will again contribute in this way. “Real estate tourism”, which we can be called as a point where real estate and tourism are combined, is an important argument that will move both the housing market and the tourism sector forward between 2021-2030. If the ministry approves this in 2021, the relevant departments in hotels will need to be converted into housing and marketing activities will begin.
How advantageous are foreign housing buyers in Turkey?
Because foreign investors’ money is now more valuable, they get cheaper, higher quality services in Turkey. Besides, they can live in a better climate and conditions for 12 months. If we consider Abu Dhabi and Dubai in the Middle East as a price, the figure that a foreigner will pay for an apartment there is 300-400 thousand dollars for 2+1, that is, about 3.2 million TL, they can buy a 3.5+1 or 4 +1 apartment here very easily at the same price or buy the same 2+1 apartment by paying 200 thousand dollars. In other words, there are good alternatives that they can buy in Turkey in the range of 1-2 million TL.
Demand for ‘Elderly Care Centers’, which will be an important niche market in Turkey, will be on the agenda again after the pandemic effect has passed, because European countries’ populations are aging at very serious rates. After 50-55 years, retirement communities will begin to form. Healthy life in Turkey, clean and warm air, good food promises them long-term liveability.
Which locations are housing investment in Turkey shaping towards for both domestic and foreign investors?
Interest in Istanbul and its surroundings began to increase. There are good opportunities in areas located a little further away from the center in Istanbul such as Çekmeköy, Bahçeşehir, Kemerburgaz, Beykoz, Göktürk and Zekeriyaköy and in branded projects in these locations. Thanks to the development of transport systems such as the Metro, we see that it is easier to escape here during the pandemic. In addition, regions around Istanbul such as Polonezköy, Şile, Sapanca and Abant also gained value during the pandemic process. In 2021, investments and production will shift to these areas. We know that 3-4 large groups from abroad, from the Middle East to Ukraine, have begun to come to Turkey to develop for this purpose and have made plans to sell to their own countries. There are groups from different countries, such as Ukraine, that are doing research to make such investments, which may be in the south, not on the coast, but inside.
In addition, we can say that logistics is a growing area of investment, and health clinic investments that will appeal to every budget can be a potential niche market for real estate.
The pandemic brought the traditional way of life back into our lives. How will this period affect the production in the sector?
It was a return to our traditional way of life, spacious houses with balconies, houses with gardens with additional lounges and working rooms in addition to living rooms. The pandemic will also change the dynamics of urban transformation in 2021. Urban transformation within the city will now begin to be done differently. In Baghdad Street for example, one of the most important places in the transformation, the houses have got smaller due to the desire of contractors to get a share, after which the houses will grow because it will be difficult to sell.
The arrival of the conventional Turkish lifestyle in production is also suitable for the preference of foreigners. Because today buyers who want to invest from Europe, the Middle East and Russia demand classic houses in Istanbul, where the kitchen is a little bigger. We predict that these investors will keep coming. We expect this trend to increase also in the world. In 2021, we anticipate that the new projects will be developed in the form of garden complexes in the immediate vicinity of Istanbul and in the Aegean and Mediterranean where it can extend to 12 months living.