The real estate and construction sectors in Turkey are one of the most important investment sectors in Turkey. The sector provides job opportunities for more than 2 million people. Economists point to a high probability of reaching the peak by the end of this year in terms of selling apartments for both local and foreign investors alike.
Experts note that last year that witnessed an unrest was successful, however, and the number of residential units were sold to more than 1.3 million apartments and residential units, and this increases the hope of increasing the demand for this sector during the year to see this year of prosperity Reflecting the increase in the stock market index and the rise in the Turkish lira against other currencies.
Experts say that the number of apartments sold this year is expected to reach 1.5 million apartments and housing units by the end of the year.
The construction and real estate sectors have been heavily subsidized by the government. The government has made many amendments and legal reforms to attract foreign investors, ranging from tax breaks to VAT and other tax cuts for foreign investors wishing to own in Turkey.
Government has reduced VAT from 18 percent to 8 percent in the past, and another step has been taken to reduce the ratio from 8 percent to 1 percent. Opportunities have been offered to facilitate payment for those wishing to own new projects. The reduction has reached 10 percent in these projects. The government has reduced real estate records from 20 to 15 per thousand.
In partnership with real estate companies from the public and private sectors, the government has made numerous offers to facilitate real estate ownership, and the possibility of installment payments for apartments and properties has been increased to 240 months in case of obtaining mortgages for ownership at a time of 120 months in the past. These offers has led to a very high demand for real estate, with the number of properties sold during the five months of the year to more than 556786 apartments and residential units.
The real estate sector has also activated the construction sector, which has led to an increased employment and reduced unemployment. The government has introduced a new package of decisions and reforms to support the construction sector by exempting employers from the necessary payments by providing insurance for employees working in these companies and employing them, and more than 200 thousand new jobs have been launched in this way.
Experts expected that foreign investors will double in the next few years to reach 200 percent, especially after the tax exemptions offered by the government as well as the opportunity to obtain Turkish citizenship for real estate investors.