The latest statistics of real estate ownership in Turkey by foreigners

  • Created At: February 25, 2022
  • Updated At: February 25, 2022
  • Category: Real-Estate investment in Turkey
  • Views: 3129

Real estate giant Knight Frank reported that Turkey experienced the largest rise in housing prices worldwide in 2021.

From June 2021 to January 2022, foreigners bought 20,488 apartments, houses and other types of real estate for sale in Istanbul and Turkey. Real estate sold to foreigners in Turkey increased by 43.7% compared to last year (2021)

The most important foreign nationalities buying property for sale in Istanbul and Turkey are Iraq, Iran, Russia, Afghanistan, Germany, Azerbaijan, Kazakhstan, UK, USA, Pakistan, Ukraine, and Palestine.

Distinctive Turkish context

The boom in real estate prices continues in the world with the continuing impact of the Corona virus. According to a statistic, ranking 55 countries around the world, real estate prices have increased by an average of 9.2 percent. At the level of developing economies, the rate was 12 percent.

Turkey leads this ranking with an increase of 29.9 percent from last year with a slowdown in its growth rate.

Followed by the United States and New Zealand. The ranking includes all the countries of the continent of Europe and some of the countries of South America, while the two weakest markets in the world are Spain and India.

Iranian citizens bought most of the housing in Turkey; 911 house or apartment. Iraq (900 deals), Russia (451 deals), Afghanistan (313 deals) and Kuwait (264 deals) also entered the top five last month.

Also among the leading countries are Germany (262), Kazakhstan (176), the USA (173) and Azerbaijan (138).

Citizens of Great Britain, China, Ukraine, Yemen, Sweden, Egypt and other countries are also interested in living in Turkey and buying apartments or houses in the republic every month.

Who are these foreigners?

When it comes to the age and profession of property buyers, the largest share of buyers are highly qualified professionals aged 45-54, doctors, engineers, etc… In addition, residents of many countries consider Turkey the best option for residency after retirement.

About 10% of property buyers have obtained citizenship, another 10% have just applied and their applications are being processed, 80% prefer to obtain a residence permit or stay in the country for two months, which does not require additional paperwork.

Between 2019 and 2020, the main goal of 36.7% of home buyers in Turkey was to make a profitable investment. Moreover, based on the results of the report, about 95% of those who bought both apartments in buildings, houses or villas (90% bought apartments and 5% - detached houses) paid special attention to the fact that there is an adjacent garden. to the home or apartment building.

This means that zoning and landscaping are very important to buyers today. Especially now, with the current epidemic situation, the demand for houses and villas has increased sharply.

What are the first destinations for investors?

Foreigners bought about 10% of housing in Istanbul and 18% in Antalya

Istanbul ranked first in August with a total of 2,729 contracts (out of a total of 24,286 deals). Foreign investors bought 11.2% of them.

Antalya, the capital of Turkey, ranked second with 976 deals. Ankara came in third place (400 deals), Mersin in fourth place (242 transactions), and Yalova ranked fifth (233 deals).

Turkey will have broken the annual record of sales of residential property to foreigners by 2023. The country wants to increase this number from 3.8% to the figures of some European countries popular with those looking for housing abroad. The proportion of non-resident investors is up to 10%.

For these purposes, qualification requirements for property owners, who are leaders in the international housing market, are tightened in the country. Real estate agents will need to know other foreign languages ​​besides English.

Great facilities

Home sales to foreigners in Turkey increased after the government decided to grant "instant citizenship" to those who buy residential properties for $250,000 or more. Previously, the minimum entry to obtain citizenship within days was double which was  $500,000. This large purchase is also made more convenient because buyers do not need to spend $250,000 on a single home. They can, for example, buy several apartments for this amount.

An expert at Istanbul real estate appraisal companies said home sales to foreigners, which slowed last year due to the pandemic, "gained momentum" this year due to the depreciation of the Turkish lira. The successful opening of the country after the quarantine has also paid off.

instant result

Foreigners bought 134,100 homes or apartments in Turkey after the authorities adopted a decree on granting citizenship immediately to those who buy real estate for $250,000 or more. Moreover, the Russians entered the top four through transactions, and lost to Iraq and Iran, but they got ahead of Afghanistan. Turkey has become a preferred destination in housing sales for foreigners

The average duration of foreign home ownership in the country is about 5.7 years

With the increase in the number of resident foreigners, housing sales to citizens of other countries continue to grow in the market despite the pandemic. If residents of other countries go to Turkey and invest in real estate more and more, it means that they see its potential.

However, there is a question about finances: firstly, it is not always easy to bring a large amount of money into Turkey from abroad. Secondly, many people will get mortgages if the interest rates are 'lower'. Currently, the level of credit utilization by foreign investors is low. If banks and credit institutions become more flexible in lending to foreigners, the contribution of the foreign sector to the Turkish economy will increase significantly.

On the other hand, many countries are willing to sell housing in exchange for cryptocurrency. It has also become popular in Turkey in a variety of fields. If there is a legal basis, the requests of foreign investors who cannot obtain bank loans in the real estate sector or who have difficulties in transferring funds to Turkish accounts will accept such payments in cryptocurrency. This situation will boost the construction industry and the country's economy

The ever-increasing volume of housing sales to foreigners will reach 50,000 deals by the end of 2022: “Istanbul, Antakya, Ankara and Mersin top the list, but there is also an increase in the number of transactions in Yalova, Bursa and Izmir.. Today, many regions of Turkey are attracting more and more investors.

Despite the sharp increase in building materials costs, sales figures at the beginning of the year were encouraging. “Despite the increase in interest rates as well as housing prices, there is demand. Moreover, Turkey recorded the highest number of this year including foreign requests. This shows the viability of the demand for residential real estate.

The bulk of the sales of apartments or houses sold in the country during the previous 8 months was purchased with cash from personal savings such as foreign currency and gold.

These statistics explain the current situation of the real estate market, its recovery and its importance, as well as the increasing real estate movement and the impact of decisions taken on increasing the desire to buy real estate in Turkey by foreign investors. As amending the Nationality Law and granting it to real estate owners and investors. It helped make the Turkish real estate market stronger and increased demand. The real estate market is also expected to witness increasing development in the coming period.

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