Real Estate Activities industry

Mortgage system in Turkey commenced in 2007

Housing demand of economies takes shape depending on a number of socio-economic factors including but not limited to population growth, social and economic development, urbanization and availability of financing. In line with consistent growth in Turkish economy and social landscape since early 2000s, the Real Estate Activities industry has been expanding. In particularly after 2007, with the introduction of mortgage system, the industry realised quite significant growth. In 2018, total number of house sales were 1,157,190 and about 20 per cent of all sales were financed by mortgage, which realised a significant decline compared to its proportion in total sales in 2017. The proportion of total house sales with mortgage financing in 2017 was about 33.5 per cent.

Urbanization in Turkey

Turkey’s economy has shown considerable degree of urbanization since early 1980s, in which the industrial share contribution to GDP rose from around 17 per cent to about 27 per cent, while the service sector contribution rose even more dramatically from just over 26 per cent to nearly 64 per cent. These structural shifts and its associated productivity gains paid dividends for Turkish citizens over the last decades. In 2001, GDP per capita was less than 2,000 USD and it peaked to 10,597 USD in 2017.

According to Worldbank study (World Bank. 2015. Rise of the Anatolian Tigers: Turkey Urbanization Review, Main Report. Policy brief; Washington, DC.), several factors contributed to Turkey’s growth-oriented and inclusive urbanization process. Firstly, policies in the 1980s promoting economic liberalization attracted the flow of new domestic and foreign private investment that created a critical pull factor for rural migrants, enabling the convergence of production and consumption markets that promoted agglomeration economies in Turkey’s cities. Secondly, a metropolitan municipality regime adopted in 1984 provided the administrative framework necessary to effectively manage fast growing cities across their economic footprint...

Products and services

This industry includes acting as lessors, agents and/or brokers in one or more of the following: selling or buying real estate, renting real estate, providing other real estate services such as appraising real estate or acting as real estate escrow agents. Activities in this industry may be carried out on own or leased property and may be done on a fee or contract basis. Also included is the building of structures, combined with maintaining ownership or leasing of such structures. This industry includes real estate property managers.

In the industry, buying and selling of self-owned real estate includes apartment buildings and dwellings; non-residential buildings, including exhibition halls, self-storage facilities, malls and shopping centres; and land.Renting and operating of self-owned or leased real estate includes apartment buildings and dwellings; non-residential buildings, including exhibition halls, self-storage facilities; and land. Provision of homes and furnished or unfurnished flats or apartments for more permanent use, typically on a monthly or annual basis as well as development of building projects for own operation and operation of residential mobile home sites  are also included in this industry.