According to a new report by Fuzul Group, ‘Revenue from Home Sales to Foreigners’, the value of Turkish real estate sales to foreigners in the last 15 years is almost $42 billion, with sales in the last 5 years accounting for almost half of this value. The value of real estate sales (to foreigners) in 2017 was $4.64 billion, almost a five fold increase on the value of sales in 2003.
The fact that property sales have increased so significantly in the last 5 years can be attributed to the amendment of the Law of Reciprocity in 2012. Prior to April 2012, foreigners from around 80 countries were allowed to buy property in Turkey without restriction; the amendment increased this number almost two fold and led the way for significant investment from countries whose citizens were not previously permitted to purchase. This included most of the countries in the Middle East and it is buyers from this region that have impacted most upon Turkish property investment in the last 5 years.
It has been a good start to 2018, with property sales values for the 1st quarter up around 20% on the same period in 2017; given the current exchange rate situation allied with the reduction in minimum investment levels for citizenship eligibility (down to $300.000 from $1.000.000), a number of industry insiders predict that this year will see record revenues from sales to foreigners, possibly up to around $8 million.
Comparing the Turkish property market to Spain, chairman of Fuzul Group, Faruk Akbal, stated that currently, foreigners account for 1 in 10 of all Spanish property sales, compared to around 1 in 65 in Turkey. In this respect, he added, there was still significant untapped potential in the Turkish property market and both the public and private sectors should come together to address this.
Property sales to foreigners up 25.8% in April
The number of properties sold to foreigners in April increased by 25.8%, compared to the same month last year.
According to Turkish Statistical Institute (TurkStat) data, foreigners purchased 2.043 properties last month; the top 3 preferred regions were Istanbul with 676 properties sold, Antalya (475) and Bursa (150).
From a nationality of origin perspective, Iraqis, once again, topped the list, purchasing a total of 337 properties across all regions. These were followed by Saudis with 252 properties, Iranians (138), Kuwaitis (116) and Russians with 112.