The real estate market in Turkey has been the subject of considerable debate over the past decade, especially after those early Turkish elections, which have been described as critical, as Turkey has attracted much attention, especially in recent times, but is the election held on 24 June were negative or positive for the real estate sector in Turkey? and what is the future of real estate after these Turkish elections?
This is what we will discuss in the following lines, let us first begin with several decisions adopted by Turkish President Erdogan after these elections:
1 – Reducing the number of ministries and combining them
Turkish President Recep Tayyip Erdoğan has passed several regulations, but this decision is making radical changes in the ministries Was the first of its kind, where many ministries would be merged in order to increase the effectiveness of the service is expected to reduce the number of ministries from 26 to 16 ministries.
- The Ministry of Family and Social Policy will be merged with the Ministry of Labor and Social Security.
- The Ministries of Science, Industry, and Technology will be merged with the Ministry of Development, all the previous ministries will be working under the new name: Ministry of Industry and Technology.
- The Ministry of Customs and Trade will be merged with the Ministry of Economy under the name of the Ministry of Commerce, one of its objectives is to increase export revenues to $ 500 billion and make Istanbul a “global financial hub”.
- Ministry of Food, Agriculture, and Livestock with the Ministry of Forestry and Water Affairs will be working under one ministry: Ministry of Agriculture and Forestry.
- The Ministry of Foreign Affairs and the European Union will also be merged into the Ministry of Foreign Affairs.
2 – Creation of new committees:
For the committees, there will be nine new committees, which are: Local Management Policy Committee, the Committee for Social Policy, the Committee of Health and Food Policies, the Committee on Culture and Art, Law Policy Committee, the Committee on Security and Foreign Policy, the Committee on Economic Policies, Education Policy Committee, the Committee on Science, Technology and Modernity Policy.
What is the impact of the previous decisions on the real estate market in Turkey?
These political fluctuations in Turkey in recent times affected all economic fields, But the real estate market in Turkey has exceeded expectations, despite the current situation has achieved good growth as according to data from the Turkish Statistics Agency, the volume of foreigners’ purchase of real estate in Turkey in March increased by 15.8% compared to the same month last year, The city of Istanbul topped the Turkish cities in terms of the number of properties sold to foreigners in March, with 556 properties, Antalya ranked second with 446 properties, Trabzon 134, Bursa 109 and Yalova with 89 properties.
This proves the effectiveness of previous Turkish government decisions and the strength of the Turkish real estate sector.
Turkish citizenship by investment:
The law of giving Turkish citizenship for investment worth 300 thousand dollars was studied by the Turkish government, this is a remarkable development of the Turkish government to strengthen the economy and give it attractive to all investors wishing to Turkish nationality, especially that the amount will be reduced from one million to 300 thousand dollars.
Pros and cons of early elections on the real estate market in Turkey
- Turkish Exports: Turkey’s exports in 2017 reached new heights and the country achieved a profit of 144 billion dollars, While the sector that achieved the most export was the automotive sector, Turkey produced about one million and 540 thousand cars last year, the figures are expected to rise this year. Because of the stability that early elections will bring.
- Development projects: Turkey in general and Istanbul have an increase in construction rates, which in turn affects employment opportunities and increases it and attracts investors (especially foreigners). Among these projects is the third Istanbul airport, which will become the largest airport in the world, as well as the Eurasia Tunnel which connects the European section of Istanbul to its Asian section, which gives it great importance in the transportation sector, in addition to many other mega projects that will turn Istanbul into a global capital.
- Turkish Tourism: Turkey has spectacular views and charming nature as well as its three seas bordering the north, south and west, where tourists usually book several months earlier the session in the hope of coming to this beautiful country, making this sector one of the strongest sectors in Turkey, where the tourism sector is an important factor to strengthen the economy, According to statistics, there is a high probability of increasing the number of tourists, especially the British, and by 50%.
- Unemployment rate: Unemployment is one of the most common problems in the world and many countries has high rates, while the unemployment rate in Turkey is estimated at 10% and is expected to increase by 1% despite all the efforts of the state to reduce them, while the government plans to increase the number of workers in the field of technology, energy and increase the number of working women.
- Inflation: The decline of the Turkish lira led to many problems, including an increase in inflation of 15%, Thus, it has achieved the highest rate in the past decade and a half, commodity prices have increased by 24% and the costs of imports has increased.
Remarks by some real estate leaders on the impact of early Turkish elections
Several real estate experts in Turkey, such as Feyzullah Yetgin, Nazmi Durbakayım, made a number of statements about the impact of the Turkish elections, That the Turkish economy in general and the real estate sector and construction in particular, as a result of the early Turkish elections decision, there will be considerable gains. Instead of waiting for the old date in 2019 to hold the elections, the decision of June 2018 will make Turkey less tense and the uncertainty situation will end.
Thus, the real estate sector will enter a new phase and many important changes will be achieved.