ListGlobally luxury buyer report in Turkey

 
Shanna Mawer, July 2021
 
This semi-annual review will examine ListGlobally's leading activity for international property across key markets from January to June 2021 to give us an idea of the resilience and evolution of the international property market and what its future activity may look like.
The demand for luxury housing is increasing around the world.
In this article, we take a closer look at the Turkish luxury market and consider:
· state of the luxury market
Foreign interest by country
· who is buying and what are they looking for?
Many are waiting for the borders to reopen so luxury property buyers can finalize the deal they have been putting on hold.
Who is buying and why?
It is important to know the preferences of these investors. As a Global Representative, we have studied this group so that you can take part in the next wave of luxury home sales and benefit from the preferences of foreign investors.

Luxury buyer in 2021
Homebuyers are looking at larger properties that are further away from places they were considering in early 2019. Consumer ideals of secondary and vacation homes have pushed interest beyond urban areas.*
The top three priorities for luxury buyers are:
· Detached house – 97.5%
· House ready to move in – 37.5%
· House is bigger than current home – 27.5%

Wealthy international consumers have realigned their priorities to spend more on real estate that gives them a sense of security, health, safety and privacy. A focus on work, school, socializing and entertainment activities taking place from home will dominate consumer searches for the remainder of 2021.
Global Agent Insight
Wealthy buyers will see opportunity, not crisis, for luxury property in Turkey
The upcoming release of pent-up international demand will stimulate sales activity in luxury markets. Buyers have unprecedented access to cash and low-cost borrowing.
Global Agent Insight

· More Chinese buyers are buying through virtual tours and meetings
Various factors increase the demand for luxury homes;
· a market with historically low interest rates (still)
· household savings increased last year due to reduced activity during the pandemic
· young buyers are eager to enter the real estate market
· Pandemic-related health concerns have older buyers seeking their ideal retirement home sooner

The luxury real estate market has responded to the changing world with buyers more than ever wanting another home because they realize they need to have a second place to go. The boom in the second-home luxury market is likely to remain for at least several years, and perhaps permanently.

What do luxury buyers want?
Working from home and distance learning have given people the flexibility to enjoy the benefits of the resort lifestyle, not just for vacation. Second home markets will see an influx of customers ready to buy, even in the off-season. Given the buoyancy of stock market earnings, bargain mortgage rates stabilizing, pent-up demand and new consumer mindsets, the luxury market is poised for a very busy season this summer.
Buyers have new demands for properties with home gyms or larger spaces. For example, a property with a swimming pool is highly desirable, and buyers want to be in neighborhoods with a better walkability score. There has been greater demand for properties with at least one and in many cases two home offices.
With increasing interest in overseas properties, luxury buyers have increasingly expressed a preference for an outdoor lifestyle, somewhere with better weather and access to swimming pools and beaches.
Global agent Insight
· Buyers are now more willing to renew as supply is limited

Foreign buyer interest
Now that we've established what luxury buyers are looking for and why they're buying properties in this market, let's look at lead activity data from ListGlobally sources to learn more about where foreign luxury buyers are buying.
The US and Turkey really know how to add opulence to their luxury properties, and we can see that the ultra-luxury (over 2.5 million) price range options for foreign buyers in these countries reflect this, along with the availability of large-area properties with more land.
The state of the luxury market in the main markets
Around this time last year, the luxury real estate market found itself at a standstill, then things started to pick up again in the last half of 2020. We could never have predicted that the luxury market would evolve in such surprising ways. Here we look at the last six months of 2020 compared to the first 6 months of 2021 in the luxury market.
Switzerland's luxury market activity has jumped during this period, while France is showing a slower pace of recovery. The takeaway here is that all luxury property leads have increased in each of these markets.

Luxury real estate in Turkey
Turkey's housing market growth is expected to moderate this year. There are two key factors in this: interest rates remain stubbornly high and a luxury housing tax is currently in effect. Foreign investment is increasing as coronavirus-related restrictive measures are lifted. There is a cautious approach to real estate investment in Turkey among wealthy buyers looking for property here. **
Wealthy buyers will see opportunity, not crisis, for luxury real estate in Turkey.

Who is looking for luxury property in Turkey?
Our leading source data shows that foreign leads for luxury properties in Turkey come from:
There is a wide range of luxury properties (modern houses, penthouses and villas) in Turkey with high rental income potential. The market is ready for foreign investors to enter the market. If your client is looking to buy a property here, there are new, luxury properties waiting for them in some of the most beautiful places in the world.

Where do they look from?
We analyzed the location of luxury home listings that attract particular attention from foreign buyers. The areas of most interest are:
The main districts in Istanbul are lucrative investments, but there are equally suitable properties in cities such as Antalya.
We dug a little deeper and discovered that luxury buyers searching in top areas are interested in properties in these cities:
Searches for overseas property continue to increase as lockdown measures ease around the world, and our data shows that overall foreign interest in Turkish luxury properties is up 12% compared to last year.
The Turkish government offers incentives for foreign real estate buyers in Turkey. For example, an investor can apply for a renewable residence permit if the property is still under the buyer's name.

What kind of homes are luxury buyers looking for in Turkey?
Demand for homes in the Turkish luxury market shows that nearly 60% of them are priced above 2.5 million, while just over half (54%) of searches for luxury flats are below 2.5 million. *
Turkey is a country that fits the perception of luxury for everyone who dreams of living abroad.
Luxury property in Turkey offers a full suite of rich options for foreign buyers. If your customer is looking for the ultimate, modern, elaborate luxury lifestyle, Turkey is the place to buy.
Regional luxury developments and housing projects in Turkey often lead (and exceed) the definition of luxury.

Global Promotion
This summer will be an exciting time for luxury real estate transactions. Are you sure you are maximizing your opportunity by becoming a Global Representative and using the Luxury by ListGlobally promotion for your top listings?

Global agent Insight
· Modern luxury houses, penthouses and villas with high rental income potential are available for foreign buyers
Luxury real estate developers are rethinking their designs to align with consumer preferences post-pandemic, as the pace of new construction begins to pick up again.
From the resurgence of urban luxury apartments to multigenerational influences and general optimism, there are many factors that help explain how luxury home sales are selling in today's economic climate.

Foreign luxury home buyers will continue to come and there will be more.
ListGlobally's consumer traffic data shows that the volume of searches for overseas properties has increased this year as quarantined consumers have had time to plan and search for luxury properties. We can help you attract these customers with our products and services.
Is the market sustainable? Market observers and experts predict that the luxury segment of the market will cool over the next 12 to 18 months. There's never been a better time to promote your properties on Luxury by ListGlobally.