The impressive performance of the Turkish real estate market in 2022 is a testament to how residential properties are becoming a favorite with foreign investors. Almost all economists predicted that property sales in Turkey would continue to grow in 2022, which has proven to be an accurate assessment. From January through October of this year, 1,159,853 residential homes were sold. Foreigners purchased 55,021 properties, a 26.9% rise from the previous year. Foreign nationals have always aspired to make Turkey their second home. As a result, the nation is providing countless chances for businesspeople, digital nomads, and retirees to come and invest in its real estate in exchange for the promise of a second citizenship with Turkish citizenship by investment program. This blog explores the factors contributing to the growth of the Turkish real estate market throughout 2022.
Turkish Real Estate Market Sales
Between January and October 2022, new property sales in Turkey increased by 4.8%, and sales of existing residential properties went up by 7.8%. A remarkable 45% more foreigners bought homes in Turkey from January to August this year than they did over the same period in 2021, with Russians leading the pack. Russian buyers surpassed Iranians as Turkey’s top foreign property purchasers in the first ten months of the year, buying 11,334 properties nationally, or a fifth of all foreign acquisitions.
Property sales to foreigners are particularly active in the resort areas, primarily in the nation’s south. According to official data, 16,779 homes in Antalya were sold to foreign nationals in the ten months leading up to October, a 94% increase from last year.
A Surge in Foreign Investment in the Turkish Real Estate Market
While many consider Turkey’s economic situation to be in a crisis or recession due to rising costs and high inflation, multinational real estate investors and prospective buyers are taking advantage of the country’s economic slowdown. The most recent data showed a %57.4 rise in the sale of homes to foreigners as compared to the same time last year, demonstrating the interest of foreign buyers in Turkish real estate.
The Turkish Statistical Institute’s property purchase statistics show that 39,032 homes were sold to foreigners between January and July of 2022, which is 57.4 higher than during the same time last year. The data demonstrates that there is still a growing international interest in Turkish real estate.
Geopolitical Impact on the Turkish Real Estate Market
Since the Russian invasion of Ukraine started, the Turkish real estate market has drawn an increasing number of Russian and Ukrainian investors. Russians currently make up the majority of international buyers of real estate in Turkey. According to the statistics agency in Turkey, nearly 5,000 Russians bought homes between February and June 2022, including 1,275 in June alone.
Turkish real estate buyers from Russia and Ukraine are especially interested in Antalya, Istanbul, Izmir, Ankara, and Bursa. 25% of the houses sold in Antalya were purchased by Russians and Ukrainians in February, an increase of 96% for the former and 85% for the latter. The popularity of Antalya among Russians has only increased as a result of the conflict in Ukraine. There are about 30,000 residents there, including 8,000 Ukrainians. In the first nine months, Ukrainian nationals increased their real estate purchases by 125% yearly to 1,775 properties.
When Moscow announced the activation of reservists for military action in Ukraine, interest from Russian nationals buying homes in Turkey surged significantly. According to industry insiders, demand increased by about 40% within a week. Istanbul and Antalya, long-time favorite vacation spots for Russians, are fast becoming populated by Russian migrants.
According to government statistics, Turkey has issued residence cards to 118,626 Russians this year, and one-fifth of Russians purchased foreign real estate in Turkey in 2022. The reasons behind the purchasing frenzy are the ability to buy a property in Turkey and get residency and the opportunity offered by the Turkish government for spenders who reach the $400,000 threshold to obtain Turkish citizenship by investment.
How have prices been affected in the Turkish Real Estate Market?
According to figures from the Turkish Central Bank, the housing price index has increased from 279.9 in January of 2022 to 605.8 in October of 2022, a staggering two-fold increase. The Antalya province holds the lead position with a rise of 231.3%, followed by Turkey’s largest metropolis Istanbul, where prices have increased by 210.8%. Foreign currency strength has grown against the Turkish lira throughout 2022, so foreign buyers and investors do not feel this increase like Turkish nationals.
Data and input from industry officials suggest that the huge demand from Russians and Ukrainians escaping the war is the primary driver of property sales and values in popular vacation areas in Turkey. Also, the price of building materials increased along with escalating inflation in Turkey, and pandemic-driven demand contributed to property price hikes. The upwards curve of the Turkish real estate market is encouraging for foreign investors with strong currencies who are planning to buy a second home in Turkey.
Explore the Turkish Real Estate Market with API Investment
If you’re considering moving to Turkey and need a local professional advisor, API Investment is here to help. Additionally, because of the Turkish origins of our long-standing company, we can help you find the appropriate property to serve as both a wonderful home and a rewarding investment.
Our knowledgeable consultants will answer your questions about the Turkish real estate market and advise you about how Turkish citizenship and Turkish residency by investment. To learn more about this, visit our blog post on Turkish Citizenship. Get in touch with our team to find out more about investment opportunities in the Turkish real estate market.