May 3, 2023
Elite real estate in Turkey is when you buy luxury flats in Turkey with the intention of reselling or renting to the community’s upper class. This idea is very sound and impressive and carries a lot of promise as investors rake in millions of dollars annually from this property market sector. However, it requires strategic investment procedures and vital steps, so ensure you have all of the industry’s tricks at your fingertips before launching your business.
This article aims to guide new entrants into the market as to their investment steps in the sector and how to best benefit from it. For additional tips and articles, read more on the official website Turk.Estate.
Perhaps the first and most important question is who is your target audience, what is their purchasing power (or prevalent purchasing power in the group), and what are their habits? These three things will help you know the kind of properties that are easy to market and why some types have higher turnover than others.
The target market for luxury flats in Turkey: About 87 million people are living in Turkey as of 2023, and only 10% of that figure falls within the upper class of society, meaning that you will be competing for the attention and patronage of only about 9 million people at a maximum. However, do not be dismayed because the Turkish luxury property market has a larger audience in the international scene. There are foreigners four times that amount investing in the property arena in the country. For example, in 2022, about 35 thousand units of properties were sold to foreigners, which is over a 75% increase compared to 2021.
Affluent Turks: Next, you need to factor in their purchasing power so as not to end up buying a property that further limits your target group. The upper-class Turks earn between 25,000 – 35,000 Turkish Lira monthly ($1,300 – $1,800), meaning they will find a property within $80,000 – $150,000 relatively affordable with savings/mortgage facilities, etc. if you are going for housing that is over and above that range, then be aware that your potential purchasers are foreign investors and vacationist and be ready to do the right publicity to attract them.
You can tell their purchasing habits by the kind of properties they patronize and their rental and selling rates. The most famous property types among these people are Beach houses and villas (especially for the foreign investor category). Meanwhile, the upper-class community within Turkey goes for the large townhouses, luxury condos, and big houses. The vast fortresses have lesser turnover since not many people can afford them.
When you consider these three vital signs and property features, you will be able to see if your intended property will move into the market or if you are in for a long wait in search of a customer. However, if you are buying for personal use, you may not need to consider all of these factors except the ease of reselling and advertising costs. In all you do, you may need to double-check the title of your seller to make sure you are buying from a verified source, especially where you are buying from a new vendor other than the known developers. Also, you are advised to have a legal practitioner on board who can help with the regularization of all the legal parts and ensure compliance with all critical laws.
From the above, you can gather that only about 10% of the Turkish labor market can afford luxury real estate purchases, and these categories often go for family-sized home, while international purchasers prefer exotic villas. The purchasing bandwidth for the average upper class is just below one hundred and fifty thousand dollars, while international buyers can go higher. The market has strong signals and is great for investment.