We believe as real estate experts that any comparison will be held, must be established based on several rational fundamentals that illustrate each of the pros and cons, in addition to the similarities on several contradictory levels, including the political, economic, and also the future visions which is accurately determined based on all of the previously mentioned factors.
Meanwhile, this article will afford you a general comparison between the current situation of the real estate market in Egypt and Turkey on different variable levels, to be fully capable to determine a suitable real estate investment destination of yours at the end of this article:
The Egyptian economy vs. Turkish economy:
Egypt has witnessed many sharp political turns since the popular revolution that took place about ten years ago, and since then the facade of the Egyptian economy has changed dramatically, and thus the Egyptian economy has been negatively affected, become fragile, and exposed to crises, which has pushed away many foreign investors to divert the destination of their foreign investments from Egypt, due to the fear of the exists instability at current present.
while Turkey also had several political turns but on the contrary, wittiness sharp economic rise, and were able to enter the global elite club of most developed industries such as heavy arms global trade and manufacturing, space industries, and many other notable domains that put Turkey on the top of decision-makers internationally.
The Egyptian government's handling of crises vs. Turkey:
The most prominent challenge that Egypt faced recently was the problem of a water dam that Mauritania built on the banks of the Nile, to generate clean electric power, but due to the Arbitrary construction, and political problems between the two countries, Egypt was affected by water scarcity and even witnessed a significant decrease in its available electric power due to the stop of movement of rivers. Any strong country without a solid energy sector cannot be a suitable destination for foreign and even local investors.
While Turkey celebrates the annual non-interruption of electricity 24/7 and its provision to all regions of the country, even recently Turkey has worked to invent devices for power generation as a result of the re-generation of waste, in addition to the solar energy sector, which later became one of the most substantial investment doors, which also extended for foreign investors to invest in it, through both the public and private sectors
Economic deterioration in the shadow of the Corona pandemic in Egypt vs. Turkey:
And on the mention of the global crises that caused economic crises on the planet level is the Coronavirus, which, due to the heavyweight of its impact on the Egyptian economy, Egypt was lost 3 billion from the foreign currency reserves in the Central Bank, in addition to the loss of more than 75 billion Egyptian pounds from the treasury of the General Administration of supporting the Egyptian nation during the quarantine period, besides to an intense decline in the domestic production output by 15%, and consequently, as a result of all previous losses, Egypt’s external debt to the World Central Bank exceeded 1.6 billion dollars just in two years from the starting date of the pandemic.
All of the above failures incurred by the Egyptian economy during the past ten years, if indicative of significant alert, indicate the weakness of each of the Egyptian domestic policies, thus the Egyptian economy’s structure has been affected frighteningly and that is no longer a haven for foreign investment or even industries.
But when it comes to Turkey, we think it’s not fair to compare it to Egypt, while Turkey in the last ten years become one of the most substantial and the robust economies within the G-20, and even during the Coronavirus pandemic period Turkey Archived notable achievements on a global scale, to rank the first in the world in terms of Exports.
Are we biased towards Turkey?
Some may think that the discourse is biased toward the Turkish side, but one of the world’s richest people in the world is the Egyptian businessman Naguib Sawiris, who had complained about the performance of his government, which created a state of economic instability, due to several influential factors, including:
Unfair competition between the public and private sectors, exaggeratedly high rates of rent, especially since neighboring countries are working to provide better services at a lower value in terms of purchasing and rental property values, in addition to many governmental restrictions that have been imposed on foreign investors, thus restricting their business inside Egypt, within various sectors.
All of the above led to the withdrawal of huge companies from Egypt and, accordingly, the rate of foreign investments in Egypt dramatically declined.
While in Turkey the government has launched several regulations which aim to facilitate foreign investors' affairs and business on the ground, by creating the tax exemption laws, providing the Turkish citizenship program for investment for foreign investors, Boosting laws for the company's establishment for foreign investors without any restrictions, such as imposing the Turkish partnership on the foreign investor and many other regulations and legislations that attracted the foreign investor to establish massive businesses that would contribute to the Turkish national income.
In conclusion, you may ask yourself why we presented all these economic facts about Egypt and compared them with the Turkish economy, and what is their relationship to the decision to buy a real estate property in Egypt or Turkey?
The answer revolves around the future value of the property and the possibility or ability to rely on the property as an investment, and we, as economists and real estate experts, believe that all the previous factors contribute greatly to the value of the property, for example:
The transportation network in Istanbul contributes greatly to attracting foreign investors to Turkey, not only to establish companies or factories, but also to transfer the entire lives of their families to Turkey, given the strong infrastructure of the city, and other social services that have met all international quality standards, such as the universities and international schools as well.
Also, the giant government projects, which are also considered an investment on a multinational level, such as Istanbul Airport, which is the largest airport in the world, which was founded by foreign companies with operating contracts for 25 years from the date of start of operation
All of these projects enhance and contribute to the importance and value of the real estate in Turkey, on the basis that these huge organized projects work to raise demand and supply as well as create a free competitive market with international quality standards
In sum, all these factors make Turkey a rational destination for owning real estate given all the benefits and pros obtained for the benefit of the foreign investor and the local Turkish one.
Although the real estate construction sector in Egypt has influential competitive offers, but what is the value of luxury real estate without a solid structural foundation, capable of guaranteeing a promising future for the foreign investor??
Ultimately, the illustrating list will go on and on; we're aware of the sensibility of the new stage of constructing a totally new life, but as long as Turkey Advisors as experts in real estate in Turkey, life in Turkey, are beside you, no need to worry about the next page, our professional team will always be ready to assist you in finding the most refined and most luxurious property in Istanbul, apartments or villas nearby the sea, luxury properties, or commercial type, make sure that we're glad to give you what you deserve and expecting for in your future hometown.