The past year 2022 showed that Turkish real estate remains one of the most reliable investment assets for foreign citizens. This is confirmed by the real excitement that has developed in the housing market of the country and, largely as a consequence of high interest, soaring prices for apartments in Turkey.
In our new publication we will try to understand what causes the demand for Turkish housing and what awaits the real estate market in Turkey in 2023.
As for foreigners, they purchased 67,490 apartments in 2022. The data shows that the number of sales increased by more than 15% compared to the last annual period. Of the total number of properties sold, the share of sales transactions with foreigners amounted to 4.5%. The most popular provinces in 2022 were:
Istanbul – 24,953 transactions;
Antalya – 21,860 sales;
Mersin – 4,316 transactions.
The most active buyers of Turkish housing were Russians (16,312 sales), citizens of Iran (8,223 sales) and Iraq (6,241 sales). Kazakhs (2,702 transactions) and Ukrainians (2,574 transactions) took the fifth and sixth places respectively. In fourth place were the citizens of Germany, who bought in Turkey 2 705 real estate.
What shapes the demand for housing in Turkey?
The rapid growth of Turkish real estate sales is largely due to the tense geopolitical situation in the world and the economic crisis. Far-sighted Turkish citizens and foreigners realize that waiting for a better time to invest is not worth it, so they invest their savings to preserve and increase capital. In addition, the triggers of active demand among foreign citizens are still undeniable advantages of Turkey:
favorable climatic conditions, good ecology, beautiful nature;
optimal prices for housing, compared to European countries;
simple procedure of registration of title documents;
developed economy of the country and excellent living conditions;
relatively low cost of living.
How the crisis affected the real estate market
Let’s highlight a few key points that affected the housing market in Turkey.
Against the backdrop of soaring real estate prices, buying a home has become unaffordable for many Turks. In addition, significantly increased mortgage rates (about 21.5%), which also affected the decline in purchasing power and led to a sharp collapse in the number of transactions (more than 40%), concluded on credit funds.
The pace of primary market sales slowed down and the majority of transactions in the second half of 2022 fell on secondary market properties. As can be seen from the statistics, sales are decreasing from year to year, nevertheless their monetary equivalent has almost doubled.
The second equally important crisis factor that affected the Turkish real estate market – migration waves. At the beginning of 2022, everyone was set for a gradual recovery from the economic downturn associated with the coronavirus pandemic. But then political turmoil and military conflicts in a number of countries began.
As a result, streams of refugees rushed to the Republic of Turkey. Against the background of a complex geopolitical situation, the stability of many states, but not Turkey, was shaken. Since it is here that foreigners find a place for a quiet life on legal grounds.
In general, three waves of migration followed during the year. The main purpose of foreign citizens was to buy real estate for registration of residence permits and citizenship. And if in the first half of the year mainly wealthy investors came to the country, then in the fall everyone who had the opportunity came here. Now there is some fading of demand, but most likely it is temporary.
The key reasons why Russian-speaking citizens have flocked to Turkey are simple legalization of residence and a comfortable environment for adaptation. How the crisis affected the real estate market
Let’s highlight a few key points that affected the housing market in Turkey.
Against the backdrop of soaring real estate prices, buying a home has become unaffordable for many Turks. In addition, significantly increased mortgage rates (about 21.5%), which also affected the decline in purchasing power and led to a sharp collapse in the number of transactions (more than 40%), concluded on credit funds.
The pace of primary market sales slowed down and the majority of transactions in the second half of 2022 fell on secondary market properties. As can be seen from the statistics, sales are decreasing from year to year, nevertheless their monetary equivalent has almost doubled.
The second equally important crisis factor that affected the Turkish real estate market – migration waves. At the beginning of 2022, everyone was set for a gradual recovery from the economic downturn associated with the coronavirus pandemic. But then political turmoil and military conflicts in a number of countries began.
As a result, streams of refugees rushed to the Republic of Turkey. Against the background of a complex geopolitical situation, the stability of many states, but not Turkey, was shaken. Since it is here that foreigners find a place for a quiet life on legal grounds.
In general, three waves of migration followed during the year. The main purpose of foreign citizens was to buy real estate for registration of residence permits and citizenship. And if in the first half of the year mainly wealthy investors came to the country, then in the fall everyone who had the opportunity came here. Now there is some fading of demand, but most likely it is temporary.
The key reasons why Russian-speaking citizens have flocked to Turkey are simple legalization of residence and a comfortable environment for adaptation.
