Home loan must have been the bread and butter of construction developers in Turkey. Individuals as well as banking and financial institutions saw progress in providing loan mortgages to both foreign and local investors. But how did the real estate market came into being?

Before looking into the actual history of real estate in Turkey, it is best to know why the industry is said to be in boom. Well, it can be owed to the fact that the country pushed hard enough to provide tourist spots that travelers will surely love. Historical, archaeological and other architectural sites are found in the area. The scenic beaches and the long coastline are sure crowd teasers. Tourism then played an important role in Turkey’s economy. As years went by, more and more properties are sold through the home loan market.

Real estate scene in Turkey from the 19th to the 20th century

In order to appreciate how the home loan market in Turkey flourished, take a closer look at what transpired during the 19th and the 20th century. These are the periods when foreign purchases became popular in the market for properties in the country.

• The 19th century events. The Ottoman Empire fell into western hands during the 19th century. With this, the following events transpired:
• In 1858, nationals and companies coming from foreign countries were already allowed to purchase real estate properties from the country. Back then, things were conducted without any restrictions or rules.
• Ten years later, in 1868, legalities of these transactions were already seen. As soon as the legal issues pertaining to the purchase were instituted, British farmers acquired a third of the arable land in Izmir.
• When the year 1878 came, these individuals owned almost all of the other farm lands in the province.
• The 20th century events. This was marked by the issuance of another set of laws in the year 1913 legalizing the purchase of properties by foreign entities including some foundations.

The home loan market in the 21st century

The series of events that took place in the turn of the 19th and 20th centuries led to the reinforcement of other laws pertaining to home loan mortgage and investments. These brought about the following important facts in the timeline:

• Year 2005. There were 17 million real estate units built as of the said year. Despite this, there was still a shortage of around 180,000 units per annum. But the market relatively grew to around €10 billion in the same year.
• Year 2007. This marked the beginning of the implementation of mortgage regulations in Turkey. House prices increased during this time but led to the building of more housing projects in the country. Demand for luxurious residences was seen at its peak especially in Antalya, Kemer and Alanya.
• Year 2008. The most important event that took place during this year was the setting of regulations for private property buying by foreigners.

With a continuing increase in population, there is no doubt that the home loan market in Turkey will continue to progress. In the year 2010, it is foreseen that a huge shopping market will be constructed in the country. This is only one of the events that will trigger the growth of the real estate industry.

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Etiketler:English, home loan, home loan mortgage, real estate

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