Foreigners Show Strong Demand for Housing in Turkey

RE/MAX has recently drawn attention to the share of foreigners in Turkey's real-estate market momentum. The number of foreigners purchasing housing from Turkey, which stood at 7,000 in the first half of last year, reached 13,338 as of June 2019. In previous years, foreign residential sales, which held a 4 percent market share, have tripled this year to reach 12 percent. Those choosing Turkey to purchase housing continue to operate according to different budgets in different cities. While houses in the 250,000–500,000 dollar range are preferred in Istanbul, these figures vary between 100,000 and 200,000 dollars in Antalya. With citizenship legislation coming to the fore, interest in properties priced at 250,000 dollars and above in Antalya is also observed. In Ankara, apartments reaching 800,000 dollars are in demand. Looking at the areas where foreigners purchase homes, locations contrary to expectations stand out. In Istanbul, Esenyurt and Beylikdüzü are the most preferred locations, while in Antalya, areas close to the sea such as Muratpaşa, Konyaaltı, Alanya and Manavgat are chosen.

In Ankara, those with higher income levels prefer Çankaya, while those with lower budgets purchase housing in Mamak and Altındağ. Among foreigners purchasing housing from Turkey, Iraqis rank first.

Iraq is followed by Iran, Russia, Qatar, Saudi Arabia, Kuwait, Sudan and Azerbaijan. Pakistanis are also among the nationalities who have recently purchased housing from Turkey. Pakistan's direct investment in Turkey approaching 600 million dollars, with trade volume approaching 497 million dollars, makes Turkey an attractive destination for Pakistanis in terms of commercial relations between the two countries. Pakistan's founder Muhammad Ali Jinnah being an admirer of Atatürk is another reason for preference. An interesting detail regarding foreigners purchasing housing is that most of them are university graduates, educated individuals and those defined as the intellectual class in their own countries. Looking at age ratios, those between 30 and 45 years old stand out. The number of foreigners over 60 years old who wish to spend their retirement in Turkey is not insignificant. One of the most important details making Turkey attractive for foreigners is the trade volume that has developed in recent years. Religious and cultural proximity, travel opportunities due to proximity to Europe and Asia, visa-free entry to many countries that comes with citizenship and ease of visa acquisition become reasons for preference. Tax exemptions provided when establishing businesses are also a major advantage. Being cheaper and having a more temperate climate compared to European countries is another factor in preference. Those coming from cold countries like Russia prefer to purchase homes in warm cities like Antalya. Those coming from warm countries, on the other hand, go to cities with more temperate climates such as Trabzon.