When it comes to who is buying or selling the most property in Turkey, anticipate a diverse range of countries. Previously primarily affiliated with Western governments, the Turkish government is becoming a worldwide participant for international investors seeking real estate and economic prospects.
Foreign investors who acquire property establish distinct niches in the world’s 37th largest country’s housing market. We chose to do a thorough dive into popular regions, the rise in demand, nationalities that buy there, and the reasons why because we have a large agency portfolio of international customers who have or wish to buy property in Turkey.
Who Purchases the Most Real Estate in Turkey?
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1: Foreign Property Sales Last Year
We went to Turk Stat, the Turkish statistics information web, to find out. Turk Stat compiles statistics on all elements of Turkish life, from school to housing. They produce monthly statistics on the Turkish real estate market, which includes international purchasers. According to reports, 67 thousand 490 real estate units were sold to foreigners in Turkey in 2022. This represented 4.5% of the housing market.
Russians purchased 16,312 homes. Iranians purchased 8223 residential units. Iraqis purchased 6241 residential units. Germans came in second, purchasing 2705 units. Note Turk Stat employs the term units to refer to both residential and commercial property. With the exception of monthly variations, the same nationalities continue to dominate real estate transactions.
Please keep in mind that the statistics do not reflect land plot acquisitions. While it is uncommon for foreigners to purchase property for farming, some do so in order to build their own homes. The cheap land is mostly inland, away from the ocean, and foreigners can buy up to 30 hectares. Land sales are thus another possibility for investors.
2: Foreign Russian Buyers in Turkey
Russians are unquestionably the top nationalities among Turkish property owners. However, Russia and Turkey have a long history of cooperation. Russians used to cross over the North East border for suitcase tourism before the Soviet Union collapsed. When the limitations were eased, Russians began to flock to the Antalya region for their vacations. Granted, one may infer that the Russian-Ukraine war is driving demand, particularly among rich Russians shopping for low-cost real estate. Foreign Russian people, on the other hand, will always have a soft spot for Turkey.
3- Iranian Foreign Property Buyers
So, whereas Russian purchasers like Turkey’s Antalya area, Iranians buy for various reasons. Many people desire to take advantage of Turkey’s citizenship-by-investment programme, which allows property buyers to apply for permanent Turkish citizenship after spending 400,000 USD on the property and promising to retain it for at least three years. The majority of the Turkish property market under this programme is government-approved houses in Istanbul. As a result, the majority of Iranians travel there. New, contemporary residences are being built by construction businesses to revitalise the housing market.
4: Iraqi Property Sales
Iraqis are the third most active home purchasers in the country. Like the Iranians, most go to Istanbul to acquire property in order to apply for Turkish citizenship. Istanbul is the most popular Turkish city for foreign property sales, and while real estate prices are regarded exorbitant by most Turks, they are nevertheless fair when compared to European nations. After purchasing a government-approved property, a foreign individual will apply for a residence visa and Turkish citizenship through an investment programme.
4: German sales to foreigners
Germans were the fourth most popular foreign nationality, although their popularity might also be explained. Germany, like Russia, has enjoyed close connections with Turkey for decades. Turkish labourers were recruited in Germany in 1961 as part of a bilateral agreement between West Germany and Turkey known as the “Anwerbeabkommen” or “Recruitment Agreement.”
The agreement addressed West Germany’s manpower shortfall during the postwar economic rebuilding phase known as the “Wirtschaftswunder” (economic miracle). The German government aggressively recruited migrant workers from Turkey to fill positions in areas such as manufacturing, construction, and other labor-short industries.
Many Turkish people, mostly men, went to Germany as temporary labourers (“Gastarbeiter”). This was the start of Turkish communities in Germany. Because of economic prospects, quality of life, and other aspects, many people finally settled in Germany. However, it appears that German Turks are returning to their cultural origins in recent decades, as many have acquired houses in Mediterranean and Aegean Turkey’s seaside tourist destinations.
Purchases of Turkish Real Estate by Arab Nationals
Let’s take a closer look at the top 20 foreign nationalities. There are also residents from other Arab nations, including Jordan and Saudi Arabia. This population produces a new subset of real estate investors. As previously said, many Middle Eastern purchasers appreciate the citizenship programme; yet, while purchasing a vacation house, Middle Eastern nationalities have gone north rather than south or west, as Europeans and Russians do.
Instead, they discover greater cultural parallels in cities such as Bursa, Trabzon, and Rize. Whereas European and Russian nationalities like the nightlife and beach scenes of Turkey’s south and west coastlines, Middle Eastern purchasers are more family oriented and want comparable culinary choices, weather, and everyday routines.
Istanbul is Turkey’s most popular tourist destination
The majority of foreign and local home transactions take place in Istanbul, the king of flat living. Given Istanbul’s prominence as Turkey’s largest and most lively metropolitan metropolis, flat living is fairly prevalent and diversified. Because to population density and urban expansion, apartments range from studio to six-bedroom units with penthouse views.
Many apartment buildings in Istanbul have amenities such as lifts, security and parking, and luxury units contain amenities such as fitness centres, swimming pools and community areas. The availability of facilities varies by neighbourhood.
Istanbul is separated into various districts, each with its own personality and feel. Because each neighbourhood has its own distinct combination of facilities, culture, and lifestyle, your choice of neighbourhood will have a considerable impact on your apartment living experience. In addition to the city centre, Istanbul is divided into 39 official districts on both the European and Asian sides. Ankara, the capital, Bursa, and Izmir are other attractive destinations for international purchasers.
Antalya, Turkey’s Mediterranean Queen
Antalya’s lovely climate, located on the Mediterranean coast, provides spectacular natural landscapes, historical landmarks, and active cultural scenes. In recent years, the city’s real estate market has expanded dramatically. It is a natural leader in overseas home sales. Antalya’s reputation as a tourist destination adds to the expansion of local real estate markets, resulting in increased demand for both holiday houses and investment properties.
The portfolio of assets is likewise wide, ranging from low-cost studio flats to new complexes, historic homes, and big luxury estates. Coastal regions like as Lara Beach, Konyaalti, and golfing Belek are in high demand for real estate.
Antalya’s well-developed infrastructure includes an ultramodern airport that connects to global locations all year. The ease of getting there helps real estate expansion as well. Property prices in coastal and metropolitan centres are greater than in suburban or less developed locations.
Why Do People Buy Vacation Homes in Turkey?
Turkey’s diversified landscapes, pleasant temperature, stunning coasts, and historical attractions make the country an appealing holiday and second home destination. Many individuals, particularly Europeans and Russians, purchase residential homes in Turkey to spend their vacations and weekends.
Opportunities for Investment: Turkey’s real estate industry has demonstrated growth potential, enticing investors wanting to profit from property appreciation over time. Buying Turkish real estate implies diversifying one’s financial portfolio. Real estate provides physical assets that are not as closely linked to typical financial markets.
Retirement: Turkey is an enticing retirement location due to its nice environment, average home prices, average cost of living in comparison to many Western nations, and rich cultural history. Some people purchase property in order to spend their retirement years in a comfortable and appealing surroundings.
Citizenship and residence: For property buyers, Turkey provides a variety of citizenship and residence programmes. Certain property investments, for example, qualify for Turkish citizenship or long-term residency, which advantages persons seeking additional citizenship possibilities or easier access to Europe.
Lifestyle and Cultural Experience: The combination of contemporary conveniences and traditional culture in Turkey allows house purchasers to immerse themselves in different lifestyles. Purchasing real estate allows for greater links to the local community and culture.
Business Ventures: Some investors buy in order to launch their own businesses, such as boutique hotels, bed and breakfasts, or restaurants. The booming tourist sector and strategic position of the nation provide several commercial prospects.
Reconnection: People with Turkish ancestry or family links may purchase land to reconnect with their ancestors or to create a space for family meetings. Some people see Turkish homes as long-term investments that their heirs may profit from.
Affordability: The average home prices, advantageous mortgage rates, and stable property market circumstances may entice purchasers who perceive the opportunity for capital gain. Because of Turkey’s geographical location at the crossroads of Europe and Asia, trade, travel, and geopolitics have become critical.
Eligibility Criteria for the Turkish Citizenship by Investment Scheme: Applicants must meet particular requirements, such as qualifying investments and passing background checks, to be eligible for the programme. The applicant, their spouse, and any dependent children are all eligible.
Various investment opportunities are available under the programme, including real estate, capital investment, job development, and government bonds. The most common approach is to invest in real estate. Simply buy real estate with a minimum value set by the Turkish government. The property must be kept for a minimum of three years.
Other Options to Invest in Turkey
Another alternative is to invest in a Turkish bank or financial organisation with fixed capital. The minimum investment amount is subject to vary over time. Some paths to citizenship involve hiring Turkish people to help the Turkish economy. This option is often applicable for company owners and investors who intend to set up or grow their activities in Turkey. Investors can acquire the program’s government bonds. Bonds are usually kept for a set amount of time.
Application Process to Invest in Turkey
There are various steps to the application process, including applying for residence, making the desired investment, and meeting additional documents and regulatory criteria. Following the completion of the acquisition, nationals apply for a residence permit and citizenship, which will be authorised or rejected before the residency permit is explored. The processing period for a citizenship application varies, but it usually takes several months to complete all of the required stages.
Citizenship Benefits of Investing in Turkey’s Real Estate
Successful nationals and their families obtain full Turkish citizenship, as well as accompanying rights and advantages, such as the ability to live, work, and travel in Turkey without a visa. In general, Turkey supports dual citizenship, which means that candidates can keep their original citizenship while becoming Turkish citizens.
How to Purchase Turkish Real Estate
Planning and research: Determine your budget and the sort of property you want (apartment, villa, acreage, etc.). Then decide on the finest spot for you. Investigate local housing markets, as well as legal needs and laws.
Find a Real Estate Agent: It is advantageous to work with a reputed local real estate agent. They aid you in navigating the market, finding appropriate houses, and negotiating. Explore their listings and pay visits to possible houses to learn about the neighbourhood and property condition.
Due Diligence: Engage the services of a knowledgeable lawyer who specialises in Turkish real estate law. They will investigate legal issues and safeguard your interests. They will check the Land Registry Office to ensure there are no outstanding debts, mortgages, or legal difficulties. Pay a deposit to protect the property until the relevant inspections are carried out.
Before you begin, acquire a tax number from the local tax office and create a Turkish bank account. Proceed with the title deed transfer (Tapu) at the Land Registry Office if all legal procedures have been satisfied. The outstanding balance has been paid, and the title deed has been transferred to your name. You will be required to pay a number of fees and taxes, including property transfer tax and notary costs. Transfer utility services (such as electricity and water) to your name. Take possession of your new house and begin living in it.
Best Locations to buy Property in Turkey
Best Places to Buy Real Estate in Turkey: First-time buyers looking for the finest areas to purchase Turkish travellers may be overwhelmed by the variety of places available, which range from major cities to tiny towns. Turkey has 81 provinces spread throughout seven geographical zones from east to west. However, before listing regions where foreigners buy more property, three areas stand out: the Mediterranean, the Aegean, and Istanbul.
Is Turkey a Safe Country?
Aside from who buys the most property in Turkey, we are frequently questioned if the nation is suited for living abroad. It’s a reasonable question because living away from beach bars and daily leisurely boat trips is never the same. We are prejudiced. Some of our team members have lived in Turkey, a secular nation, for many years because they enjoy it. They currently live in Istanbul, Fethiye, Antalya, Bodrum, and the good old ex-pat British sanctuary of Altinkum.
