Real estate investment strategy shifts and market challenges

Real estate investment strategies are increasingly focusing on long-term land development potential. Investors are prioritizing the analysis of zoning status, infrastructure, and industrial corridors, particularly in the Marmara, North Aegean, and Central Anatolia regions.

To combat rising housing costs, new approaches such as the ‘Two-Stage Housing Model’ have emerged. This model allows investors to first purchase zoned and serviced land, then manage the construction phase through a designated contractor, spreading out costs over time.

However, the Turkish real estate sector is currently facing stagnation driven by high inflation, rising construction costs, and high interest rates. In Batman, consultants report a decline in sales as buyers shift toward gold and interest-bearing accounts. Urban transformation projects are also generating friction; in Rize’s Yağlıtaş neighborhood, residents have protested high costs, claiming new housing prices exceed the value of their original homes. In Istanbul’s Şirinevler district, renewal efforts continue with the demolition of old buildings.

To address financing difficulties, companies are introducing extended payment options, such as RAMS Türkiye’s 60-month installment plan. Additionally, arsaVev has implemented a two-stage model to separate land acquisition from construction costs. Experts, including geologist Prof. Dr. Naci Görür, have emphasized that urban transformation must ensure critical infrastructure—such as water, electricity, and transport—is earthquake-resilient, rather than merely replacing buildings.