Geopolitics and real estate in Turkey have been intertwined for centuries, but in recent years, the complexities of this relationship have taken on a new dimension. As Turkey has emerged as a key player in the Middle East and a significant regional power, the impact of geopolitics on the real estate market has become increasingly worrisome.

1. Geopolitics and real estate in Turkey
Geopolitics and real estate in Turkey have been intertwined for centuries, but in recent
years, the complexities of this relationship have taken on a new dimension. As Turkey
has emerged as a key player in the Middle East and a significant regional power, the
impact of geopolitics on the real estate market has become increasingly worrisome.
First and foremost, the geopolitical situation in the region has a direct impact on
investor confidence in the Turkish real estate market. With ongoing conflicts and
tensions in neighboring countries such as Syria and Iraq, as well as strained relations
with major world powers, potential investors may be hesitant to commit to long-term
investments in Turkish real estate. The uncertainty surrounding the geopolitical
situation has created a sense of unease among prospective buyers and developers,
leading to a slowdown in real estate transactions and a decrease in property values.
Additionally, the evolving geopolitical landscape has also brought about changes in
property ownership laws and regulations. The Turkish government has recently
implemented new policies aimed at regulating and restricting foreign ownership of real
estate, particularly in areas of strategic importance or national security concerns. These
measures have created additional barriers for foreign investors looking to enter the
Turkish market, further dampening the potential for growth and development in the
real estate sector.
Furthermore, the geopolitical tensions have also had a significant impact on the tourism
industry in Turkey, a key driver of the real estate market. As the region becomes
increasingly unstable, tourists are less inclined to visit, leading to a decline in demand
for holiday homes and rental properties. The knock-on effect of this decrease in tourism
has been felt throughout the real estate market, with an oversupply of properties and a
decrease in rental yields.
The worrying state of geopolitical affairs in Turkey has also led to a potential
devaluation of the Turkish lira, which has further impacted the real estate market. As
political tensions grow and economic sanctions loom, the value of the Turkish lira has

2. become increasingly volatile, causing uncertainty and instability in the real estate
market. This has led to a depreciation in property prices and a lack of confidence in the
local currency, making it difficult for both domestic and international investors to
accurately assess the long-term value of their real estate investments.
In light of these concerns, it is imperative for real estate professionals and investors to
carefully consider the geopolitical factors at play when making decisions about Turkish
real estate. While the potential for growth and development in the market remains
significant, the instability and uncertainty that accompanies the current geopolitical
situation pose real risks to future investments in the region.
Moving forward, it is essential for policymakers and industry stakeholders to work
together to address these challenges and create a more stable and sustainable
environment for real estate investment in Turkey. This may involve lobbying for more
transparent and predictable property ownership laws, as well as advocating for policies
that promote stability and economic growth in the region. Additionally, efforts to
diversify the real estate market and target alternative sources of demand, such as
domestic buyers or niche markets, may help to alleviate some of the pressure caused by
geopolitical tensions.
In conclusion, the intertwining of geopolitics and real estate in Turkey has created a
perfect storm of uncertainty and instability. The worrying state of the region’s political
landscape has significantly impacted the real estate market, leading to a decrease in
investor confidence and property values. Moving forward, it is crucial for industry
stakeholders and policymakers to work together to address these challenges and create a
more stable and sustainable environment for real estate investment in Turkey. Only
through collaborative efforts can the region’s real estate market overcome the current
geopolitical turmoil and pave the way for a brighter and more prosperous future.

3. Photo by Fatih Yürür on Unsplash