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What expects Turkey's real estate market in 2017

What expects Turkey's real estate market in 2017

Turkish real estate is investment attractive for locals and especially for foreigners, therefore at the end of the year a lot of analytical and consulting agencies are trying to predict the future of this market.

The main trends are related to the increase of housing price, the accelerated demand for residential real estate and increased interest in remote areas.

What causes such expectations? The reason is the high growth rate of property prices in Alanya and the whole country in 2016. According to Knight Frank, Turkey is the country with the highest growth rate in Europe which is 26%. This is the absolute maximum in Europe. The balance with Latvia and Hungary, the countries that followed Turkey, is 16%. The average price of a square meter is around €1600. Experts expect further price growth but find it difficult to name the exact growth rate.

The increase in housing prices is likely to provoke people to make a profitable investment which means the number of buyers will increase.

And the interest in areas distant from the city center is expected to grow as housing is much cheaper there.

Visit world’s most unique museum in Avanos

Located in the central part of Turkey and inspired from Cappadocia’s traditional architecture, this is the only “underground ceramic museum” in the world. With the area of 1600 square meters, this museum will impress everyone, no matter you are local or foreigner. Since the Hittities, Avanos can be called the “capital of pottery” as this place has always been known for the pottery handicraft.

The museum has three sections: Antique Works Hall (the star-planned hall with a tunnel which displays artifacts from the late Chalcolithic to Ottoman periods), Modern Works Hall presenting works by Turkish famous contemporary and traditional ceramic artists, and Art Gallery – Cafeteria (resting area with an exhibition hall, library, cafeteria and fireplace).

You can visit the museum throughout the year. And it also serves for various events including 700-person capacity dinner parties, workshops, cocktails, dance shows and concerts.

The Law on citizenship has changed

Over the last year amending the legislation on foreigners wishing to obtain the Turkish citizenship was mentioned in the media for several times. And eventually the changes came into force.

The main aim of the changes is to facilitate the acquisition of citizenship for large foreign investors and attract new investments into Turkey's economy.

According to the renewed legislation, the citizenship will be given to foreigners who buy real estate in Turkey which costs not less a million in foreign currency. The other candidates can be foreigners who invest at least 2 million dollars or set up an account or get a bank loan of 3 million dollars. Businessmen who launch their business in Turkey and provide at least 100 jobs for locals also may receive Turkish citizenship.

The area of Antalya International Airport will be increased by 450 hectares

Antalya airport is the third biggest airport in Turkey which carriers over 25-30 million passengers per year. And over the recent years the trend towards an increased domestic as well as international passenger traffic has been observed. People go to Turkey as tourists and to buy real estate there as well. Therefore, the Turkish government decided to expand the airport area.

Within five years they bought land plots adjacent to the airport. Their total area is almost 450 hectares. And in 2017 it is planned to clear the nationalised land and transfer it into the airport authority. Now the land is occupied with various warehouses and greenhouses.

It is planned that expanded area will be used for planes maintenance and construction of the passenger terminal. Within five years which are given for construction of the new terminal, it is also planned to equip the airport with two additional runways with taxiways and adjacent areas.

Expenses on maintenance and buying a car in Turkey will increase in 2017

At the end of 2016 the Turkish Minister of Finance Naci Ağbal announced that the special consumer tax (ÖTV) on expensive cars would increase. That decision was made in order to support the automobile industry. It is worth reminding that such automotive giants as Ford, Fiat, Toyota, Renault have their plants in Turkey. It is expected that the tax increase will bring over 3 billion lires to the budget.

The new law will be adopted in 2017 and will affect cars tax-free cost of which will exceed 40 thousand lires. So the size of the tax which varies from 45% to 168% will depend on not only engine capacity but also its price.

Along with the special consumer tax, the annual vehicle tax (MTV) will increase on average by 3.83%. The size of the tax still depends on the engine capacity and the age of the vehicle.

If you are going to buy an apartment in Turkey or rent housing, you can use your own car but you will have to deal with a lot of paperwork.

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