Benefiting from overseas interest and a strong economy, Turkey is once again leading the pack in property price growth, according to Knight Frank’s latest Global House Price Index—an analysis of residential prices in 56 countries and territories—released in December 2020.
Prices in the country grew 27% during the third quarter of 2020, though “in real terms, once inflation of 14% is deducted, annual price growth sits closer to 13%,” the property consultants and estate agency said. It marked the third consecutive quarter that Turkey has topped the ranking.
With price gains of 15% during the third quarter, New Zealand jumped up to second in the rankings from 11th place last quarter.
The country has seen demand for homes increase following coronavirus lockdown measures, according to Knight Frank, with transactions jumping 41% from a year earlier.
Further boosting demand is the country’s temporarily eased mortgage lending requirements, an economy-boosting measure similar to those introduced in other countries like the U.K., where a stamp duty tax on the majority of home buys has been scrapped by the government until the spring.
Price growth in the U.K. ranked 22nd on the list, with values growing 4.7% in the third quarter from last year.
The U.S. recorded 7% price growth over the same time, putting it in 14th place.
Across all of the countries and territories included in the report, prices rose 4.5% in the third quarter compared to the same time year, a figure well within the 4% to 5.5% range that the metric has stood at since early 2017.
Turkey’s home sales report 2015 - 2020
Turkey’s residential property sales surpassed 7 million homes during the past 5 years as locals bought 6.9 million houses while foreigners purchased 154,871 residences, according to the article, based on data from the Turkish Statistical Institute (TÜIK).
Istanbul: Turkey’s favorite city for property
Istanbul, the biggest city in Turkey, ranked as Turkey’s favorite city and top tourist destination with home sales of 1.2 million, Ankara followed with 720,124, Izmir with 412,488, Antalya with 313,735 and Bursa with 265,715.
Many Anatolian provinces have seen over 50,000 houses sold each in the last five years in metropolitan areas.
Notable increase in foreigner interest in Turkish homes
Foreigners have been interested in buying a property in Turkey for the last five years, as they purchased nearly 155,000 residences.
Foreigners’ favorite spot for house purchases has been Istanbul with 61,734 residences being sold, followed by Antalya, Bursa, Yalova, capital Ankara and Sakarya.
Turkey’s homes sales by nationality
Iraqis have become the biggest buyers of Turkish property since January 2015, purchasing over 30,000 residences. Iran, Saudi Arabia, Russia and Kuwait followed Iraq’s lead, with each group purchasing at least 10,000 residences.
The first eight months of 2020 have seen increasing interest by the Chinese, who bought 575 houses in the January-August period and moved to the eighth rank among foreigners buying the most property.
Foreign buyers became Turkish citizens
Foreign residential sales showed a rapid increase in the last year due to the high exchange rate and legislative amendments that eased the minimum requirements for acquiring Turkish citizenship, which has led investors from all over the world to benefit from this opportunity and acquire residential property in the country.
Under regulations introduced on Sept. 19, 2018, foreigners who own real estate in Turkey worth a minimum of $250,000 – down from $1 million – are eligible for Turkish citizenship.
According to the Interior Ministry's General Directorate of Population and Citizenship Affairs, some 2,611 foreign buyers became Turkish citizens a year after the amendments were introduced.
Foreigners were first able to buy property in 2001, and since then Turkish authorities have continually revised and simplified the process to attract investment in the housing market from overseas. Buying a house or owning a property in Turkey can be completed in just one day.
Turkey offers a golden opportunity for settlement and investment, offering a distinguished opportunity to obtain Turkish citizenship for the family during a record period. Akarkom team of real estate consultants is ready to help you choose the most suitable properties according to your budget and requirements from within a bouquet of carefully selected villas, apartments and shops.
Edited by Ziyad Veis based on knight Frank, Mansion Global, AA, and DS.