83.2% of foreigners satisfied with the purchase of housing in Turkey

In early March 2021, the Association for the Promotion of Turkish Real Estate Abroad (GİGDER) published its recent research, which analyses the interests and opinions of foreign investors regarding the purchase of housing in Turkey. In the near future, the country expects to receive $ 10 billion from the sale of housing to foreigners.

Analysts at GİGDER, in partnership with the research company AGS Global, analysed the information received from 410 property investors in Turkey from 48 countries, assessing the prospects for foreign investments in this sector and prepared the report of "Competition and Inspiration: Rethinking the future of real estate investments in Turkey".

Buyers’ nationality

According to the report, 83.2% of those who bought real estate in the Republic of Turkey are satisfied with the purchase. As for the nationality of the new property owners in Turkey, Algerians are most satisfied with their new property: 95.8% of buyers expressed their satisfaction.

They are followed by nationals of:

Russia - 92.6%;

Germany - 92%;

UK - 91.7%;

Jordan - 89.7%;

Iraq - 86.5%;

Iran - 76.9%;

and Saudi Arabia - 66.7%.

Returning customers

When asked if they plan to buy property in Turkey again in the near future, 70.2% gave a positive answer. 18.5% of the surveyed found it difficult to answer. 

Thus, at least 7 out of 10 buyers not only considered their new property worth buying, but also were so satisfied that they were going to buy something else. Which means that Turkey managed to build the right image in terms of promoting housing in foreign markets.

Taking into account the survey data, GİGDER President Omer Faruk Akbal said: “The satisfaction rate of 83.2% is a very good indicator. Yes, Turkey has some difficulties with its promotion strategy. However, the residential real estate that the country offers for sale today, togerther with the quality of construction, cosmopolitan culture and a foreign-friendly environment, makes foreigners feel at home here. So Turkey is definitely one of the most attractive real estate markets for investors from all over the world.

Countries interested in Turkey's real estate

The expert also said residents of which countries are definitely planning to buy housing in Turkey. Nationals of the following countries are highly likely to buy property in Turkey:

- 72.4% Jordan;

- 66.7% Algeria;

- 51.4% Iraq;

- 41.7% Saudi Arabia;

- 43.6% UK.

Nationals of the counties below are considering buying a house, but they have not decided yet:

- 48% Germany;

- 46.2% Iran;

- 41.7% UK;

- 37% Russia.

Why do foreigners buy housing in Turkey?

The recent survey confirmed that the price plays a major role in making a decision to buy property in Turkey (63.4% of the surveyed investors).

However, in general, there are five key factors; the price factor is followed by location (58.3%), the landscape and especially the view from windows (36.6%), profitability (ROI) (28.8%) as well as design features and quality of construction (21%).

The above figures refer to all respondents. As for the stats in terms of investors’ countries of origin, the figures are as follows:

- for the British (83.3%) and Jordanians (62.1%), the most important factor is property's location;

- the price is the most critical for nationals of four countries: Iraq (75.7% of respondents), Germany (68%), Algeria (54.2%) and Iran (61.5%)

- for more than half of Russian investors, the price-location ratio is the key factor (51.9%).

Perspectives

Mr. Akbal added: “While the average price per square meter of residential real estate in Istanbul today is €450, in Europe this figure remains at the level of €2,000-4,000. So real estate in Turkey has not yet reached the value it deserves. The way to overcome price-driven competitiveness is to expand the market range, choose the right marketing strategy, and carefully manage the reputation with the value-added pricing leverage. "

Additional benefits

Among other characteristics, which buyers from all over the world consider when choosing real estate in Turkey, the respondents highlighted the following:

- climate (53.2% of respondents);

- compatibility of cultural, social and religious priorities (48%);

- security and stability (39.8%);

- cost-effective option for a holiday home (34.9%);

- and, finally, famous Turkish hospitality (30.7%).

If we take into account the countries where the surveyed live, the preferences look as follows:

- nationals of Saudi Arabia first of all give preference to the climate (71.8% of the surveyed);

- residents of Iraq - a safe and stable life (70.3%);

- for nationals of Jordan (55.2%) and Iran (53.8%), a property in Turkey is an option for a cheaper beach holidays in comparison with their home country;

- Russians (77.8%) and Germans (84%) think that the climate is the most important additional factor;

- Algerians (50%) choose the compatibility of cultural, social and religious characteristics;

- for 66.7% of respondents from the UK, the ratio of two factors is most important: a good climate and a safe, stable life.

Problems after buying a home

Many people buy residential real estate in Turkey in order to live there: part of the year or permanently. This is the reason for most of the problems that the respondents mentioned.

So, the key “reasons for dissatisfaction” fell into two categories.

Household problems:

- postponement of the project completion date (in the case of buying a property under construction) - 77.4%;

- misinformation or not entirely accurate information about overhead costs (utility bills, etc.) - 36.6%;

- dissatisfaction with the way the residential complex is managed - 30.1%;

- issues related to the supply of electricity, water, gas, etc. - 16.1%;

- and finally difficulties in obtaining a residence permit and citizenship - 14%.

The second group of difficulties is of a social nature:

- 59.1% of respondents complained about lack of security and other related problems;

- negative reactions from the locals - 37.9%;

- intercultural and social conflicts - 36.4%;

- language difficulties - 22.7%.

And finally, we would like to mention subjective positive impressions.

49% of the respondents mentioned “a very beautiful country” and 6.1% - "rich history". Also, many characterized Turkey as "my second home close to nature" (which was the reason for the active development of the so-called "villa tourism") and "a convenient place for both holidays as well as investment and business."

Read the detailed home sales report for January 2021 here.