Feb 5, 2023

Reasons Encouraging Kuwaitis to Invest in Real Estate in Turkey

Turkey today has become a destination for many businessmen, capitalists and investors in particular, where the real estate sector in Turkey has witnessed an increasing demand by foreigners and Arabs due to the great successes and profits achieved by real estate investment in Turkey. In this article, we will highlight the most important Kuwaiti investments in Turkey and the reasons that encourage them to enter the real estate field in Turkey.

Based on what was revealed by the Turkish Ambassador to Kuwait, Tube Sönmez, in October 2023, that Kuwaiti investments in Turkey amounted to about two billion dollars, indicating that Kuwaiti investments in Turkey are mainly focused on the financial and real estate fields. Real estate investment in Turkey, along with the financial sector, has become a key area for Kuwaiti investors. Trade and investment relations between the two countries are also at the center of the distinguished political relations between the two countries, which have reached an ideal level in light of the leadership’s directives.

Kuwaitis own real estate in Turkey

According to statistics, Kuwaitis were among the most important Arab nationalities who head to real estate investment in Turkey, especially after the repeal of the reciprocity law approved by Turkey in 2012 because the Kuwaiti government does not allow Turks to buy real estate on its lands, but that did not prevent the Turkish government from allowing Kuwaitis to buy real estate in Turkey and invest in it as they wish.

After the issuance of this law, the number of Kuwaiti investors increased significantly, and they were able to be among the top ten Arab communities that purchased the most real estate. Real estate investment in Turkey became more accessible for Kuwaiti investors. Moreover, during the previous year, they were able to enter the top five Arab countries that purchased real estate in Turkey. In general, Kuwaitis are considered one of the most prominent communities investing in the real estate field. The majority of individual purchases of Kuwaiti real estate are based on equity and not debt, considering that the purpose of the purchase is consumption, not investment.

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What do Kuwaiti investors prefer in Turkey?

Given the great profit achieved by real estate investment in Turkey and given the mentality of the Kuwaiti investor, we find that they prefer to go to practical matters that achieve quick and inevitable success. Therefore, we note that Kuwaitis prefer to buy real estate that can be used for investment, and this applies to hotel apartments, restaurants, cafes, tourist resorts, etc. They tend to be interested in buying real estate within Istanbul, Bursa and Trabzon, which are known for their investment importance.

Residential real estate, especially luxury ones, ranks second among the interests of Kuwaiti investors, as they are interested in buying villas in Turkey, residential complexes, and luxury properties, and also they prefer real estate in Istanbul, Antalya, and Yalova.

Kuwaitis are also interested in buying land in Turkey and establishing investment projects of all kinds, and for this reason they often turn to the city of Trabzon.

Reasons that attract Kuwaitis to real estate in Turkey

There are certainly many factors that contributed to attracting Kuwaiti investors to real estate investment in Turkey, the most important of which are:

The many facilities and legislation that the Turkish government created which are in the interest of foreign investors who do not hold Turkish citizenship.
Real estate prices in Turkey are considered low when compared to real estate prices in neighboring European countries, despite their excellent features and specifications.
The distinctive climate and beautiful terrain are spread throughout Turkey, which Gulf citizens generally miss due to the hot, dry weather within their countries, while in Turkey they find a pleasant Mediterranean climate suitable for tourism and holidays.
Advanced and modern infrastructure, from public transportation to highways, social, health, educational, and recreational public and private facilities and services as well, which closely resembles the civilizational development in Europe with a culture and lifestyle close to Eastern culture.
The real estate residence permit that a foreign investors obtain when purchasing a property in Turkey, worth $200,000, which allows them to travel to Turkey any time without worrying about obtaining an entry visa.
Obtaining Turkish citizenship through real estate investment in Turkey, by buying a property worth at least $400,000, which is a great incentive for investors to enjoy the benefits of Turkish citizenship and a Turkish passport that allows entry to a large number of countries without the need for an entry visa.
The great importance that Turkey has as a first-class tourist country, and this is what contributed to attracting a large number of tourists and thus restoring various real estate investments in it.
The large presence of Arab communities in Turkey, which occupy all fields of work, provides a suitable workforce for Kuwaiti investments in the region.
Significant tax reductions in Turkey, which contributes greatly to attracting investors to benefit from these exemptions.
The presence of the Kuwait Turkish Bank (Kuveyt Türk Bank), which facilitates money transfers and real estate payment transactions and is known for providing loans and good dealing with customers.

Future expectations regarding Kuwaiti investment in Turkey?

Despite the great challenges that the real estate sector witnessed in Turkey during the recent period, this did not affect the Kuwaiti demand for purchasing real estate. This is due to the great efforts that the Turkish government have been working on, to attract investors, and it is expected that the value of Kuwaiti investments will rise in the coming years.

The Turkish government’s commitment to foreigners to obtain the real estate valuation document also led to a significant decrease in real estate fraud cases and contributed to preserving the rights of Kuwaiti investors and thus encouraged them to purchase.

The prosperity of industries in Kuwait and the entry of many Kuwaitis into the business market recently. On the other hand, it contributed, in the past, to the availability of huge liquidity that helps them excel in this vast real estate ownership. In general, perhaps after this real estate investment pursuit, it will make sense to start purchasing real estate for residence to enjoy the beauty of Turkey and its friendly, active environment after experiencing the investment market there.

For inquiries about real estate investment in Turkey, do not hesitate to contact us via WhatsApp, here. The real estate consultant in our company, Akarkom International Real Estate, will contact you immediately.

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