Foreigners Have Bought Turkish Property For Nearly 42 Billion USD In The Last 15 Years - Finance and Markets

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The foreigners have bought real estate worth nearly 42 billion USD in Turkey between 2003 and 2017, according to the Fuzul Group. The increase in revenue generated by the sale of property to foreigners has attracted attention, especially after the entry into force of the law on reciprocity. It allowed the citizens of 129 countries to acquire property in Turkey and the residents of 50 other countries to buy on a mild basis.

After the entry into force of the law, the revenue from the sale of residential property to foreign citizens increased every year since 2013, reaching 3.49 billion USD in 2013, 4.32 billion USD in 2014, 4.16 billion USD in 2015, 3.89 billion USD in 2016, and 4.64 billion USD in 2017.

It is expected that as a result of the decrease in the value of the Turkish lira and the lowering of the minimum limit for investment in properties against the acquisition of Turkish citizenship from 1 million USD to 300 thousand USD from sales of foreigners’ homes in the last 15 years will reach 50 billion USD> until the end of 2018.

Faruk Akbal, the president of Nevita International, which was established by Fuzul Group to sell property to foreigners, says that after the entry into force of the Reciprocity Act, 99,691 residential properties were bought by foreigners. He adds that annual trends show significant growth in recent years.

In the first three months of 2018, the sales of property to foreigners increased by 20% over the same period in 2017, Faruk Akbal notes, adding that although sales volumes appear small, lowering the floor for real estate investments the acquisition of Turkish citizenship will lead to a significant increase in sales. According to Akbal, the foreigners prefer to invest in properties worth between 100,000 USD and 300,000 USD.

“In the US, 284,000 homes were sold to foreigners and they have paid a total of 153 billion USD for them. One in every 20 houses was sold to a foreigner. In Spain, the volume of home sales to foreigners reached 50,000 in 2017. One out of every ten houses in the country was sold to a foreign citizen. We can sell one out of every 65 homes and earn 4.6 billion USD. However, the private and public sectors still have a lot to do to improve this data”, said Faruk Akbal.

The number of properties sold to foreigners in Turkey has increased by 25.8% on an annual basis, according to data from the statistical office in the country. From 2043 residential properties sold to foreign citizens, 676 were in Istanbul. Second is the Mediterranean resort of Antalya with 475 properties and the northwestern province of Bursa is third with 150.

Iraqi citizens are the most active buyers of Turkish property among foreigners with 337 homes purchased, followed by Saudis with 252, Iranians with 138, Kuwait with 116 and Russians with 112.

The number of properties sold in Turkey decreased by 9.9% in April compared to the same month of the previous year, according to statistics. Last month, 103,087 houses were sold, including 47,534 new homes.

The largest share of homes sold in Istanbul is 16.9% with 17,414 residential properties, according to statistics. The capital Ankara and the Aegean province of Izmir form a share of 10% and 6.2% respectively of total house sales.