Turkey is Under Close-Marking of Institutional Investors
View Mar 07, 2021
Different opportunities and investment areas emerged in Turkey after the pandemic attract not only individual investors but also institutional investors. Foreign investors are making plans to buy commercial real estate in Turkey and turn it into mixed-structure projects.
After the pandemic, investment opportunities in Turkey increased. Turkey, which is growing in housing today not only in the Gulf countries, but also in markets such as Europe, has been closely branded not only by individual foreign investors, but also by corporate foreign investors, especially after the pandemic. The reason for this is that the transitions between different types of real estate has started and the trend of different types of real estate being together in the investments. So, what exactly does the rise of this trend, especially after the pandemic, and this transition between real estate types mean?
In Turkey today, there are international institutional investors who see quite an opportunity and are waiting for the appropriate environment to evaluate it, conducting research here. For these investors who follow political developments very closely, there are very important investment areas in Turkey that have shining stars in real estate. Buying office buildings, shopping malls and hotels at an affordable price, which lost its old profitability after the pandemic and saw a decline in their value, is one of them. Their goal is to convert some of these investments they have purchased into an outpatient clinic, hospital, student house or elderly care center. In addition, plans to convert some of the shopping centers and offices into shared co-working areas, some of them into decoration ready long-term rental service apartment projects with concierge service are also on the agenda. It is possible that we will see such new investments in the coming period that may attract the interest of expats, businesspeople and those who want to live in the center.
“PropTech” also receives international investment in Turkey
Logistics and property technologies (PropTech), two areas whose stars rose after the pandemic, are also attracting the interest of foreign investors in Turkey. Foreigners have also started to fund real estate investments in Turkey in the PropTech field. They prefer to win by financing companies that they see as potential in this area in Turkey. The automatic evaluation system is developing in Turkey as it is all over the world. Foreigners have a chance to look at the numerical data and reports produced by artificial intelligence developed by PropTech companies such as Gaboras, Endeksa before investing in Turkey. Foreigners can thus monitor changes in the value of house prices and rents from where they live today.
We rank number two after New Zealand in foreign sales rate
According to a European study, the fact that Turkey is the second fastest country in the real estate sector after the outbreak, after New Zealand, clearly shows the potential it carries. Another trend was added after the pandemic alongside the Gulf interest. It is also a trend for an English, French or German retired couple to start planning the last years of their lives in Turkey because of the climate and being closer to greenery in Turkey. Recently, Western European countries are also very eager to buy real estate from Turkey, and the share of this will also increase in sales. There will be very positive developments in the Turkish real estate market in the next 2 years. Understanding the inadequacies of the house due to the increase in time spent at home with the pandemic, as well as the desire to live in a solid house against the earthquake, the size of the residence, the need for green space to the fore, will continue the demand for real estate. Besides, there are many areas in Turkey that will develop with urban transformation due to earthquake risk areas. With the improvement of these regions and the construction of healthy housing, the potential for values to rise in Istanbul arises. The tourism value of Turkey and Istanbul is still an undeniable fact today.
Authorized sales will boost investor trust
We are making progress in confidence-building processes in Turkey for foreign investors. For example, our brokerage system is now much more secure. With the new regulation introduced, no one without a certificate of authority will be able to be a brokerage or real estate agent, no one who does not have certain standards,
no one without a certificate of authority will be able to sell to foreigners, this is an important guarantee. No one who does not meet the necessary standards, criteria, is uneducated and has a broken record will be able to become a real estate agent. Those who mediate the sale to foreigners are now better qualified and more legally compliant with the criteria, and the sector is also under control within itself. Therefore, foreign investors will first be able to question whether there is necessarily a certificate of authorization when buying real estate from a broker or real estate agent. All Entrepreneurial Real Estate Consultants (TÜGEM) is trying to establish a professional union of real estate consultants, so it is on the agenda to sell real estate to a stranger in safer hands.
Web-Tapu is an important digital move in the public
The Directorate of Land Registry and Cadastre (TKGM) has progressed quite a bit at the point of digital moves. The web-tapu registry system will allow foreign investors to buy real estate from their seats in a process that restricts travel, such as the pandemic. These systems are installed with blockchain-based encryption systems, where they can also receive analysis reports on a regional basis. Then it can do all the transactions you do in the deed online. In other words, it is possible to send money and get a deed in exchange for money in a digital environment. In this way, the problem of not trusting intermediaries is eliminated with government assurance. In addition, there is a need to shorten legal processes with mediation and to establish a call-center that will listen to all kinds of problems of foreign investors. Our government is also working on a regulation on selling to foreigners.
The Historical Peninsula will become Istanbul’s “Old Town”
The planned urban transformation on the Historical Peninsula is very important. Its infrastructure is being prepared with plans and planning negotiations with the Istanbul Metropolitan Municipality are continuing for the transformation. Negotiations will accelerate as the pandemic eases. From March, there is a planned study, in 1-year, interesting things will start to be seen here. After the completion of the transformation, the Historical Peninsula will become the region where foreigners want to live most predominantly and become an old town.