Foreigners Show Great Interest in Residential Properties in Turkey

RE/MAX highlights the growing trend of foreign nationals' increasing share in Turkey's real estate market in recent years. In the first half of the previous year, foreigners' property purchases in Turkey totaled approximately seven thousand units, but in 2019 this figure rose to 13,338 as of June. In recent years, the market share of property purchases was approximately 4 percent, but this year the figure has tripled to 12 percent. Foreigners choosing Turkey to purchase property exhibit different preferences in different cities according to their budgets. Foreigners prefer homes valued between USD 250,000 and USD 500,000 in Istanbul, whereas in Antalya these figures range from USD 100,000 to USD 200,000. Following the introduction of the citizenship law, real estate valued at USD 250,000 and above has also attracted interest in Antalya. In Ankara, prices can reach up to USD 800,000. Regarding the districts where foreigners purchase houses, preferences can sometimes be surprising. While Esenyurt and Beylikdüzü are the most preferred locations in Istanbul, in Antalya the districts of Muratpaşa, Konyaaltı, Alanya and Manavgat are preferred, which are close to the sea.

In Ankara, high-income buyers prefer Çankaya, while lower-income buyers purchase housing in Mamak and Altındağ districts. Iraqis rank first among foreign nationals purchasing residential property in Turkey. Iraq is followed by Iran, Russia, Qatar, Saudi Arabia, Kuwait, Sudan and Azerbaijan.

Pakistanis also rank among the top buyers in recent years. Factors such as Pakistan's USD 600 million direct investment in Turkey, trade volume approaching USD 497 million and commercial relations between the two countries make Turkey attractive for Pakistanis. The fact that Muhammad Ali Jinnah, the founder of Pakistan, was an admirer of Atatürk is another reason for their preference. An interesting detail concerning foreign nationals who purchase housing is that most are university graduates, educated and regarded as intellectuals in their own countries. The age group of 30 to 45 years stands out. The number of foreigners over 60 years old who wish to spend retirement in Turkey is not insignificant. One of the most important factors making Turkey attractive for foreigners is the growing trade volume in recent years. Religious and cultural proximity, proximity to Europe and Asia, travel opportunities, visa-free entry to many countries upon citizenship acquisition and ease of obtaining visas are preferred. In Turkey, the tax exemption provided when establishing a business is also a significant advantage. Another factor in choosing Turkey is a lower cost of living and milder climate compared to European countries. Those from cold countries such as Russia prefer to purchase houses in hot cities like Antalya. Those from warm countries are relocating to cities with a milder climate such as Trabzon.