The Institute of Statistics in Turkey published a report of sales of residential real estate: 320,063 houses and apartments were sold in the first quarter of 2022. This is 21.7% more than in the same period last year.
Most of real estate — 134,170 objects — were sold in March. Demand rose by about a third compared to February. The reason is that the inflation rate in the country reached 60% in March.
94,437 objects were purchased on the primary real estate market, that is, in buildings under construction. The rest of the houses and apartments were purchased by buyers on the secondary housing market.
How many accommodations were bought by foreigners in Turkey from January to March 2022
The number of transactions for the purchase and sale of housing by foreigners increased by 45.1% in the first quarter of 2022 compared to the same period last year. Foreigners bought 14,344 Turkish properties, which is 4.5% of all sales in the country.
In Turkey, there is a principle of reciprocity applies: citizens of countries where Turkish citizens are allowed to buy real estate can buy real estate. Demand for real estate in Turkey is growing steadily.
In the last five years, foreigners have bought 188,144 residential properties. Such data led the Minister of Environment and Urban Development of Turkey Murat Kurum in response to one of the meetings of representatives.
Real Estate Chief Operations Officer, RICS certified professional
Foreigners are more likely to buy houses and apartments in Istanbul, Antalya, Ankara and Izmir. These cities consistently top the ranking of the most popular places to buy property in Turkey from foreigners.
Foreigners are much less likely to buy housing in small towns, for example, only 25 houses were sold in Ardahan in March 2022, and 82 houses in Bayburt. These two cities are located in the northeast of Turkey.
Most housing was sold to Iranian citizens: they bought 2256 properties. In second place are the citizens of Iraq: they signed 1887 contracts for the purchase of Turkish housing. Russia is in third place, Germany and Kazakhstan close the top 5.
How prices for residential real estate in Turkey have changed
The dynamics of property prices in Turkey is ahead of the dynamics of the European Union. Turkey ranks first in the Eurostat housing price index among European countries. Turkish property increased in value by 427% from 2010 to the fourth quarter of 2021. That is 10 times more than the increase in real estate prices in the European Union.
The Central Bank of Turkey has updated the price index for residential real estate
in February 2022. During the year, housing prices rose by 96.4% on average in the country. In the largest Turkish city — Istanbul — prices rose by 106.3%.
How has the cost of renting housing in Turkey changed?
The rise in housing prices has also affected the rise in rental prices, especially in large cities. The cost of renting property in Turkey increased by more than 100% in March 2022 year on an annualized basis.
The average rental price in Turkey is 3,100 Turkish Lira ($210) in March 2022. Rental prices in Istanbul have reached 6,500 Turkish Lira ($440), according to real estate portal Emlakjet.com.
Real estate specialists also note that the criteria for choosing housing have changed. Due to rising prices, tenants choose objects by cost, while earlier criteria such as proximity to work, age and seismic resistance of the building, and developed infrastructure were a priority.
What investors get by buying property in Turkey
Turkish citizenship for the whole family. The investor took part in the state citizenship program. One of the program options is the purchase of real estate. You can buy any object: apartment, house, commercial or industrial premises, land.
Together with the investor, members of his family can obtain Turkish citizenship: spouse and children under 18 years of age. The investor can attach parents and adult children to the application if they are financially dependent on him.
The Turkish passport gives rights to live, work, study and come to the country at any time, even when the borders are closed.
Additional income from the rental of real estate. Turkey is a popular holiday destination: about 9 million tourists visited the country in 2021. They rent apartments, houses and hotel rooms.
Prices for Turkish real estate are growing on average by 5-20% per year, depending on the region. Rental income reaches 15% per annum.
Examples of investment properties in Turkey
Visa-free travel to 111 countries. With a Turkish passport, you can freely visit several countries that are inaccessible to Russians without visas. Among them are Japan, Singapore and Hong Kong.
The opportunity to obtain an E-2 business visa to the USA and move to the country with the whole family. The E-2 visa is non-immigrant — it cannot be used to obtain a green card and apply for citizenship. The visa is valid for 5 years, then it can be extended an unlimited number of times.
To obtain an E-2 visa, you need to invest a significant amount in a US business and take over the management of the company. The minimum investment threshold is not defined: in practice, it is enough to invest about $200,000.
Social guarantees. Turkish citizens can be treated for free in public clinics and study at universities. There are also no restrictions on the inheritance of real estate and assets in the country.
How to get Turkish citizenship by investment
To obtain Turkish citizenship for the purchase of real estate, necessary to take part in the state program. The minimum investment for the option with the purchase of real estate is $400,000.
An investor can buy several objects, but the purchase must be made in one contract. The investor will also be required to own the property for at least three years.
Immigrant Invest is a licensed agent of the Turkish citizenship by investment program. If you want to buy real estate in the country and get a Turkish passport, seek advice from investment program experts.