Important Information About the Turkish Real Estate Sector
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?
Strength Points:
Sound banking system.
The mortgage system has been newly applied.
The presence of excellent construction companies that are
worldly famous.
Weakness Points:
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.
Comments
Post a Comment