Real Estate Investment and Citizenships in Turkey for 2022

Real Estate Investment and Citizenships in Turkey for 2022

The Turkish investment property market is a market with highly active active sales. Real estate investors in Europe, America and the Middle East prefer to buy houses, especially in Istanbul and many other popular centers of Turkey. The latest figures are quite high. In a very short time, even within a few months, real estate sales were made to nearly 500,000 foreign investors.

Another issue that we pay attention to in house sales is the issue of sales to foreigners. The Regulation Amending the Regulation on the Implementation of the Turkish Citizenship Law entered into force by being published in the Official Gazette dated 6 January 2022 and numbered 31711. The Regulation on the Implementation of the Turkish Citizenship Law set certain limits in US Dollars for obtaining citizenship through capital or real estate investment. While other foreign currencies corresponding to these limits are still accepted, the phrase "Turkish Lira with equivalent" has been removed. Thus, it was determined that foreigners should invest in foreign currency in order to qualify for citizenship within the scope of capital or real estate investment.

According to TUIK statistics, house sales to foreigners increased by 78.4% in 2018 compared to the previous year, while 39,663 house sales to foreigners were over 45 thousand in 2019 and 40 thousand in 2020. In 2021, with the decrease of the effects of the Covid pandemic, this statistic has exceeded 58 thousand. In this way, 3.9% of the total house sales were realized in the form of sales to foreigners. With the new regulation, it is aimed to evaluate the increasing demand more effectively, to increase the demand for Turkish Lira considering the exchange rate fluctuations experienced in Turkey in recent months, and to support the CBRT's foreign exchange reserves. (vizyongd.com)

Source:TUIK

Although cities such as Istanbul, Antalya, Aydın, Ankara, Bursa, Izmir, Yalova, Mersin, Sakarya, Samsun and Trabzon come first among the provinces where foreigners prefer to buy housing in Turkey, Istanbul and Antalya continue to be at the top of the list.

While Antalya was the province mostly preferred by foreigners in 2013-2014, it is understood from the chart above that Istanbul was the first preferred province for foreign investors in the following years. However, despite the fact that the sales of housing to foreigners have slowed down partially in the pandemic year, that is, in 2020, it is seen that they are at their peak in 2021. The reason for this is the increase in the exchange rate and the increase in the purchasing power of foreigners in the face of foreign exchange. In addition, rental-guaranteed property sales in branded projects have also created an attractive opportunity for foreigners. In 2021, Istanbul is in the 1st place with a share of 42% (26,469 units), while Antalya is in the 2nd place with a share of 23% (12,284 units). Foreigners bought 4 out of every 100 houses sold in the last year. This rate was 1 in 2014. While the rate of home ownership of households in our country was 59.3% in 2014, it decreased to 55.7% in 2020. In other words, the houses that foreigners do not buy are bought by the households that already have a house.

Housing sales to foreigners increased by 55.6% in the January-February 2022 period compared to the same period of the previous year and became 8,777. In February 2022, Iranian citizens bought 711 houses from Turkey. The citizens of Iran were followed by the citizens of Iraq with 633 residences and the citizens of the Russian Federation with 509 residences, respectively.

Source:TUIK

According to Turkish statistics, recently, Turkey has seen a great demand for buying real estate from foreign investors across Turkey and Istanbul for various reasons, including real estate investment, especially housing and stability.

Why Are Real Estate Investments and Acquisitions Attractive in Turkey?

The government gave its strong support to the real estate sector as it is the main engine of the Turkish economy. Thanks to these supports, everything was systematically and simplified for foreign investors. It is as easy as you can do with consulting firms or even yourself.

If you want to learn the details of citizenship and real estate investment transactions, visit our page.

According to the official data announced, the number of first-hand housing sales across the country increased by 22.2 percent in January 2022 compared to the same month of the previous year, and became 27 thousand 203, despite the pandemic that affected the whole world. Again, according to the officially announced data, second-hand house sales increased by 26.5 percent in January 2022 compared to January 2021 and became 61 thousand 103.

Real estate investments will accelerate in 2022!

The real estate sector, which spent two years stagnant due to the pandemic, is preparing for new investments in 2022. Sector representatives say that new projects will be implemented this year.

2021 was a year in which costs and housing prices in the sector increased rapidly due to price increases in construction materials. There was a serious slowdown in new investments with both cost increase and Kovid effects. On the other hand, the sector year ended with records.

While 178 thousand houses were sold in November, the highest monthly sales figure of the year, 1 million 265 thousand houses were sold in 11 months. At the end of the year, it is estimated that the figure reached 1.5 million and a new record was broken. With the motivation caused by the overlapping records and the decline in exchange rates, the housing sector players are starting the year 2022 with more hope. The button was pressed again for investments.

Foreigners, who seize the price opportunity with the rising exchange rates, continue their purchases. A double record was set in sales to foreigners. Sales to foreigners increased by 39.4 percent in November and reached 50,735 units, and was at the peak of all time before the range data was released. Sales to foreigners broke a record with 45,483 units in 2019. In addition, monthly sales in November increased by 48.4 percent compared to the same month of 2020 and were recorded as 7 thousand 363. This figure was recorded as the highest monthly sales to foreigners. For the first time in the history of sales to foreigners, 7 thousand units per month were exceeded. While foreigners mostly bought houses in Istanbul and Antalya, Iranian, Iraqi and Russian citizens placed in the top 3.

We are getting closer to the target in house sales to foreigners

With the sale of housing to foreigners; There are investors who predict that 2022 will be closed with a sales figure of over 75 thousand. In the sale of investment houses, the foreign currency equivalent of this is approximately 10 billion dollars, together with the related sectors. We hope that with the support to be made in order to reach our potential; In 2022, the sales figure to foreigners may exceed 10 billion dollars. We can say that it will go even higher with the promotion activities and supports to be carried out abroad, and the planning and process management to be carried out in the country. The important thing here is to introduce our country, which is worth living and investing in, in the most accurate way.”

NOTE: The investment information, comments and recommendations contained herein are not within the scope of investment consultancy. Investment consultancy service; brokerage houses, portfolio management companies, non-deposit banks and the customer within the framework of an investment consultancy agreement. The comments and analyzes contained herein are of a general nature and are based on the personal opinions of those who comment and analyze. These views may not be suitable for your financial situation and risk and return preferences. Therefore, making an investment decision based solely on the information contained herein may not yield results that meet your expectations.

The information used in this program has been obtained from reliable sources, and Property Turkey Istanbul site and/or the author/shareholder cannot be held responsible for any direct and/or indirect damages incurred by investors and third parties as a result of using the shared information, due to any errors/deficiencies in the sources.

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