About House Sales To Foreigners In Turkey
When looking at house sales to foreigners in Turkey, 2021 turned the property market on its head. By November 2021, official data showed Turkey received 8.5 billion USD from foreign house purchases, and industry experts predicted 10 billion by the year-end. Credit for massive sales pointed at a 50% value slump in the Turkish lira despite increases in house prices overall. So, for those who want to buy property in Turkey, let us look at foreign house buyers’ habits and regional markets.
About House Sales To Foreigners In Turkey
COVID Impact on International Property Sales
Property market reports say COVID affected regional property markets and increases in foreign sales reflected those buying for investment rather than holiday homes. For this reason, foreign real estate sales by gulf country nationalities fell in 2021. In addition, with Turkey entering 2021, with many regions on lockdown, sales were slow despite many agents reverting to online viewing portals to carry on business. It was only when lockdowns lifted when sales for non-investment reasons increased.
Foreign Market Trends from April
The first signs of changes in foreign buyers came in April 2021 when house sales to foreigners increased by a staggering 400 per cent year-on-year. In data released by the Turkish Statistical Institute (TUIK), 4,000 home buyers included Afghan, Iran, Iraq, and Russian nationalities. Compared to total house sales in Turkey, including domestic of 124 per cent, stats proved foreigners saw ideal investment opportunities. For destinations, foreign buyers preferred Istanbul, Antalya, Ankara, Mersin, and Bursa. Newspaper reports said foreign house sales made up for gaps in the domestic market, where sales dropped.
Citizenship by Investment Scheme for Foreigners
In Turkey, luxury property sales by foreigners pointed at the citizenship by investment scheme. Previously, a 1 million USD entrance level made the project, designed to increase foreign investment, one of the world’s most expensive golden visa passports and saw few takers. However, when Turkey dropped the entry-level to 250,000 USD, the scheme became one of the world’s cheapest and foreign interest increased.
However, some sectors prefer a 500,000 USD entry-level, but other Turkish property experts say this would decrease foreign sales, and are against the proposal. Such suggestions have prompted some buyers to purchase now rather than later. Nationalities interested in citizenship by investment included Egyptians, Palestinians, while other luxury buyers like Kuwaitis and Saudi Arabians bought purely for personal reasons.
House and Rent Prices in Turkey
In September 2021, Knight Frank data reported a massive overall house price hike in Turkey. Their survey of 55 countries said global house price increases averaged 5 to 12%, while Turkey reported a staggering 29 per cent increase. This beat 25% in New Zealand and 18 per cent in the USA. The report also revealed a crisis in Istanbul, where average renters couldn’t afford the increases in rent prices. Overall, throughout Turkey, rent prices rose by 40%. Regardless, troubles with the Turkish lira exchange fluctuation still made the property market a good investment for foreign buyers.
Overall Yearly View of Turkish Property Markets
While the Turkish Statistical Institute will release official data for the year later, in November 2021, foreign house sales rose by 48% year on year. Once again, increases pointed at the Turkish lira slump, which attracted hard cash buyers with no mortgage or financing needs. In this one month, foreigners purchased 7,363 homes making this the best month for house sales since 2013. However, when comparing the Turkish lira value in December to September of the same year, the currency was 40% weaker, therefore wiping out house price and construction cost increases.
From January to November of 2021, foreign house sales increased 40 per cent, even though overall sales, including domestic, fell by 10%. However, three places continued their yearly trend of most popular places where foreigners invest in property. These places will continue to lead for many years.
Istanbul continually ranks as Turkey’s top spot for foreigners buying property. Despite not being Turkey’s capital, as a hub of commerce, tourism, business, economy, education, and health, Istanbul attracts property investors rather than holiday home buyers. Mass development and mega projects boost interest, resulting in an average cost per square meter of 6,312 Turkish lira. The incredibly diverse property market includes budget, investment homes and Turkey’s most luxurious and expensive real estate; the Bosphorus mansions. Many homes sell at off-plan prices, with long-term payment plans offering 0% interest. Read about property in Istanbul.
Thanks to the gorgeous Mediterranean beachside locations, this property market attracts investment and holiday home buyers. Average costs are 4000 lira per square meter, but prices increase for coastline property. Antalya stands out because despite being a large city, places like Konyaalti and Lara beaches, Kaleici old town, and Setur marina, steadily attract many foreign tourists through pleasing aesthetic looks rather than typical concrete, urban jungle appearances. In addition, Antalya sits a 20-minute drive from an airport with an impressive year-round flight schedule. More about the property market in Antalya.
The Capital of Ankara
As Turkey’s political centre, Ankara offers essential commercial and industrial value because of a central Anatolian location for road and railway networks. Ankara, Turkey’s second-largest city, provides everything typical urban landscapes like street-side cafes, shopping malls, family-friendly suburbs, and an extensive public transportation network. The 6 million population also reflects modern Turkey as an education hub and centre of business excellence. Many countries base their embassies there, and the large expat community live in Ankara all year round.
We are Turkey Homes, founded by Tolga Ertukel, who has more than 20 years of experience selling Turkish property to a global audience. With a head office in London, we have branches throughout Turkey, including Istanbul, Antalya, Fethiye and Bodrum. We have helped many overseas buyers find their dream homes by offering a comprehensive property buying service.
If you want to buy a Turkish property and would like to know more about house sales to foreigners in Turkey and the property market, contact us today or browse our portfolio of apartments and villas for sale. Each listing contains everything, including price, location, home features and arranging a home viewing in Turkey.