European Union negotiations and their relation with real estate prices in Turkey

In 1963, Turkey began cooperation with the European Union and became a member of the European Economic Community, Turkey applied for membership in the European Union and formal negotiations between the European Union and Turkey began in 2005 in this regard.

What are the benefits that Turkey will get from joining the European Union?

When Turkey joins the European Union, it is expected to receive aid to cover economic development. It is also expected that there will be an increase in European foreign investment in the Turkish economy, which will lead to increased economic growth, Turkey can benefit from the European Union’s assistance in the event that it is exposed to a potential economic crisis.

How was the general reaction?

Since Turkey’s official request for membership in the European Union, the road seemed difficult, but public opinion in Turkey in the early years and even most of the first decade of the new millennium was positive, and Turkey received the opening of membership negotiations with the European Union with great fanfare, but soon The Turkish people became skeptical when negotiations were delayed and considered it lukewarm support for Turkey’s accession to the European Union, and according to opinion polls conducted later, it was found that only 41.9% of Turks supported the joining of Turkey to the European Union, while 27.7% oppose accession while 24% of opinions are indifferent. Some Turkish citizens believe that the European Union is not important to Turkey and that its interests in working with Asia are greater.

While the world opinion of most of the European Union countries was opposed to Turkey’s membership in general, the percentage of support for Turkey’s membership came only from the left parties.

Were real estate prices affected by the negotiations?

The aspirations of real estate investors regarding the rise in real estate prices were sharply in the event that positive steps were taken during the negotiations, but the opposite happened when things did not go smoothly, which made the investors benefiting from their investments in Eastern European countries wondering if Turkey would follow the same approach in the Turkish real estate market, And whether they can benefit from Turkey’s expected accession to the European Union.

According to the data, it is not possible to predict the movement of real estate prices in Turkey, as it was the case in Eastern European countries, when real estate prices rose in them because of their membership in the European Union.

Turkey has witnessed a clear increase in the purchase of residential and commercial real estate by foreign investors since 2007 until today, this has definitely led to an increase in real estate prices in Turkey, especially in major cities, while this coincided with an economic slowdown in the European Union region. The American credit crunch.

The fact of the matter is that foreign direct investment in Turkey and the rise in real estate prices are constantly increasing and growing despite its non-membership in the European Union, as Turkey is seen as a safe haven for investment due to its exit from the Eurozone.

What attracts investors to Turkey and raises prices is not related at all to membership negotiations in the European Union, but to economic expansion and stable growth, and Turkey’s aspirations for development and growth in all fields, making it an attractive investment interface that surpassed the expectations of EU membership.

Who invests in Turkey and why?

Real estate buyers in Turkey fall under two main categories: ‘lifestyle buyers’ and ‘investors’.

Lifestyle buyers are European buyers in general, tend to buy holiday homes on the Mediterranean and Aegean coasts, the most desirable regions on their part are Antalya, Bodrum, and similar beach resorts, low cost of living, reasonable prices, and an easy lifestyle. Near-home services save these buyers to go to Turkey.

As for the investors, they tend to get more spoils by buying them, they tend to the big cities, and the investment operations vary from buying residential properties to large investment properties in shopping centers or large developed projects, and they are stimulated by the economic expansion in Turkey and the easy investment framework, where they can transfer their money. Inside or outside Turkey without restrictions.

it seems that being outside the Eurozone helps a lot, regarding investor affairs and for sure that the tax benefits provided by the Turkish government to investors play an important role, to ensure that profits from sales will increase within a few years.

Does Turkey’s relationship with the European Union matter?

Compared to previous years, Turkey’s relationship with the European Union is less important these days, as previously joining the European Union was really important for Turkish citizens, and they had a serious desire to join, but today the Turkish citizen has become almost indifferent.

On the other hand, the volume of Turkish trade with the European Union and non-member states, including the countries of the Middle East, Russia and China, is increasing, as Turkey has a great cultural influence on the Middle East, the Soviet Union and energy-rich countries, also Turkey has become a source of culture for these countries and they are working to expand their influence in all directions.

Do the EU negotiations have an impact on real estate prices in Turkey?

We can summarize the answer to this question, by saying that Turkey is not looking to Europe, the West or the East, but rather is moving and developing its sphere of influence more broadly in all directions, and this is the essence of economic development in Turkey, and that smart investors are really aware that the European Union Less important in front of this big growth.

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