In 2020, Real Estate Investment in Turkey sales increased by 11.2% year-on-year to nearly 1.5 million purchases. But the pandemic has hurt foreign interests in Turkish real estate, dropping 10% of what they bought in 2019.
Buyers from the Middle East have completed more than half of the transactions by foreigners dealing with Real Estate Investment in Turkey, and Iranians are the first foreign buyers driving since 2015. An international real estate company explains what is happening in the Turkish housing market, where prices are rising.
What are the Most Popular Stands Among Real Estate Investment in Turkey
Last year, foreigners bought 413,000 Turkish homes and apartments, according to data from the Real Estate Investment in Turkey. This is 10% less than it was a year ago. In the spring, home sales to foreigners fell sharply, borders were closed, and real estate was not selected or contracted. The trip resumed in the summer and sales returned.
For the first time in the past five years. Iranians have repatriated Iraqis and bought 17% of all Turkish assets bought by non-Turkish buyers. Turkey is the closest and safest port for Iranians who want to invest money. Safely in foreign lands and avoid sanctions, primarily using Bitcoin. The Iraqi, who recorded the highest purchases during the past few years, came in second place with 6,674 deals. Russians, the third largest home buyers in the country, account for 7.5% of all sales to foreigners. Then there are Afghanistan, Azerbaijan and Germany.
Iraqis, Afghans and Germans are Always Among the Top Foreigners to Obtain a Turkish Residence or Work Permit
The pandemic had a serious impact on both the number of Turkish immigrants and the Real Estate Investment in Turkey they made. One example of the opposite is the Kazakh people. Despite the general decline, Kazakh buyers bought 50% more Turkish homes. Than in 2019, reaching the top 10 foreign buyers of Turkish real estate. Kazakhstan was the first tourist to visit Turkey. After the blockade in June 2020, and its borders with many other countries remain closed.
Another reason for this growing Real Estate Investment in Turkey is the Kazakh expat community, which has over 23,000 Kazakh citizens living in the country by 2020. This is a 12% increase over last year. Other foreigners buying property in Turkey in 2020 are Chinese buyers who will double their purchases from 2019. Meanwhile, Saudi Arabia, which has been active in the Turkish real estate market. For the past few years, has reduced its investments by 70%.
In 2018, Turkey lowered its financial and investment standards for foreigners to become Turkish citizens. And increased their investments in the economy, especially real estate transactions.
Turkish Citizenship By Buying Property in Turkey
Since then, foreigners can become citizens (starting at $1 million) if they have $250,000 in assets over three years. The devaluation of the Turkish lira that year made the Turkish real estate market more attractive. With the total number of homes sold to foreigners increasing by 78% in 2018.
Many foreign Real Estate Investment in Turkey earn passive income and rent it out throughout the year. For example, you can buy a two-room apartment of 50 sq.m. In a new apartment building in Alanya or a two-room apartment of 90 sq.m. in. The new Antalya district of Istanbul for 50 thousand dollars. A one-bedroom Alanya apartment can fetch 250-300 per month. Considering all costs including rental income tax, annual property tax and apartment maintenance, the yield is around 4%.
What is happening in the Turkish real estate market
The most popular destinations for foreigners in 2020 are Istanbul, Antalya, Ankara and Bursa. According to Real Estate Investment in Turkey, Russian speakers are three times more likely to buy real estate in some parts of Turkey in 2020 than in 2019. Fethiye is the leader in growth with 217%, followed by Bodrum with 200% and Mahmutler with 150%. Istanbul comes fourth with a growth rate of 133%, while the popular resorts of Alanya and Antalya have almost doubled.
In terms of property prices, Bodrum is the most expensive place in Turkey. With an average of 1,350 per square meter. Marmaris comes in second place with an area of 1000 per square meter. The third 800 euros per square meter in Fethiye. The fourth and fifth places are shared by Alan with Istanbul – 650 euros per square meter. Cheap real estate in Ankara is 350 per square meter. This is mainly due to the low base effect. Demand declined many years ago, but is now recovering.
