Turk Estate has collated the latest information and figures regarding types of housing, where foreigners buy in Turkey, and what they are interested in. Three provinces came to the fore, but... everything in turn.
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June records
We will remind you that in June 2022, real estate sales to foreigners broke a record. In the total number of buyers of real estate in Turkey, the quota for foreigners for the first time exceeded 5%, coming close to 6% (5.7%). That is, every fifth transaction was concluded with an investor from abroad.
In the last two years, 8630 is the highest quota and number of transactions. You will recall that in May of this year, there were 5,962 sales to foreigners. If we compare this to previous years: in June 2021, there were 4,748 (the figure of June 2022 added 81.8%), and in June 2020 – 1,664.
The Russians have been leading in the number of transactions for several months, ahead of the previous winners, Iran and Iraq, who had been consistently ranked first and second among foreign buyers for previous months.
Here is a list of the top 20 countries that purchased the most housing in Turkey in June 2022:
- Russian Federation – 1,887 units;
- Iran – 967;
- Iraq – 807;
- China – 377;
- Germany – 329;
- Kazakhstan – 318;
- Ukraine – 301;
- Afghanistan – 256;
- Yemen – 222;
- Palestine – 205;
- Kuwait – 190;
- Egypt – 188;
- USA – 181;
- Pakistan – 162;
- England – 144;
- Jordan – 133;
- Azerbaijan – 131;
- Canada – 105;
- Sudan – 103;
- Lebanon – 95.
Key Turkish publications, which comment on the situation in the construction and development markets, reported on sales data published in June.
After taking into consideration the "breakdown" by country, the columnist of the newspaper Dünya H. Bader Arslan stressed that almost all states showed an increase in the number of transactions, but it was the citizens of the Russian Federation who escalated: in the first quarter – from January to March this year – they purchased 1,535 housing units in Turkey In the second quarter, this figure almost tripled: 4,314 units.
The journalist noted that the monthly volume of transactions with foreigners can be stated as the highest for the entire period of observation.
Habertürk newspaper columnist Abdurrahman Yildirim focused on the growing power of Antalya and its impact on the housing investment market as a whole. Apartments and houses here are in great demand; this is the only region where rents have increased by 329% in 12 months at once.
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Antalya
In June 2022, in Antalya, foreigners made every third housing transaction in the province: 31.5%. The average for the first half of the year is 26%, which is not much lower. The citizens of Russia and Iran purchased the most: Russians purchased 7,978 apartments or houses, Iranians – 4,396.
We recently informed you that over the past five years (2017-2021), out of 206,768 housing transactions with foreigners throughout Turkey, every fifth deal (20.2%) was concluded in Antalya: 41,715 units. This is explained by the fact that over 100 direct flights depart from Antalya airport to numerous countries.
Buyers from countries such as Germany, Kazakhstan, Iraq, Ukraine, Sweden, Norway, England, and Denmark have been among the top 10 leaders in Antalya over the past five years. Currently, however, the United States of America, China, and some other countries are becoming strong. By the end of this year, the "balance of power" may change.
Chairman of the Helmann Yapi Board Selman Özgün emphasized the potential of the consumer markets of such countries as the USA, Azerbaijan, Jordan, the Netherlands, Finland, Belarus, Ireland, Canada, France, Israel, and Austria.
One cannot dismiss the growing popularity of Antalya at the beginning of the pandemic, when, as Selman Özgün emphasized, all coastal cities had become much more attractive for both short- and long-term living. Antalya is one of the most developed and comfortable seaside cities, especially for the so-called "digital nomads" (employees of international companies from IT, design, investment, and related fields, able to work from anywhere in the world via the Internet). This category of tourists, or, in other words, "migratory birds" (people who spend most of their time traveling and living in one country or another, including thanks to the recently appeared "visa of digital nomads"), is increasingly becoming "residents".
Underscoring the impact of ex-pats on the high sales figures is undeniable. Selman Özgün reminded us that we should be grateful for the steadily growing dollar and euro exchange rates. As a result, the price of housing in Antalya for overseas investors has always been reasonable.
Since February of this year, citizens of the Russian Federation and Ukraine have, for obvious reasons, rushed to Antalya. So, although, officially, Antalya is inferior to Istanbul in deals with foreign nationals it has been more in demand in recent months.
There are also interesting observations about priorities "inside Antalya", as there are many resort towns and villages in the province, each with its features.
You will recall that on the Aegean coast, in the sought-after Bodrum, foreigners buy every fourth residence. In Antalya, official data for recent months has not yet been made public, but the following is obvious: in addition to Antalya, the largest city in this region, Russians prefer the cities of Alanya and Kemer, as well as the resort village of Beldibi; Germans and Scandinavians – Alanya; the British – the expensive villages of Kaş and Kalkan.
Istanbul
Istanbul, which has the highest number of housing transactions per month in the country, is also the most popular with foreigners. In June, 14% of sales, or every seventh transaction, came from foreigners.
This is also explained by the growing demand for the largest Turkish metropolis as an investment destination among international clients, and the rapidly rising prices for residential real estate, which used to be expensive: many locals can no longer afford to buy housing in this financial, economic and tourist center and choose other provinces.
Interested clients from other countries prefer new buildings, and these are branded residences of the metropolis from well-known developers, as we have already reported.
Sales Solutions founder and Motto Turkey board member Soner Keleş said that almost every second residence sold in the primary market of the metropolis is constructed for overseas investors.
When constructing new projects in Istanbul, developers focus on the choice of locations and neighborhoods in demand from foreign buyers; and take into account their interest in conceptual and state-of-the-art projects.
Mersin
Mersin, where the first Akkuyu nuclear power plant in Turkey is underway, ranks third in demand. Mersin is also a good resort, which, considering the large–scale injections into its economy in connection with a new project, is quickly "overgrown" with infrastructure: social and transport. The plans include the metro and the airport, which are.
The data of the Turkish statistical agency TÜIK confirmed that the interest of foreign nationals in Mersin is gradually increasing. If in 2020, citizens of other states purchased only 1,313 residences in this province, in 10 months of 2021, they bought 1,870. In November last year, the developers were pleased with these results. Then, as of October last year, Mersin rose to third place among the Turkish cities with the highest sales to investors from abroad (207 apartments or houses).
However, there were more reasons to celebrate in 2022: firstly, summing up the results of 2021( 2,513 transactions with overseas citizens) to almost double in 2020.
Furthermore: in January–May of this year alone, foreign buyers bought 1,227 residences in Mersin. By June 2022, Mersin had risen from fourth to third place (citizens of other states purchased 264 residences in Mersin) in the popularity rating among overseas buyers and, as we can see, in June it held the "bronze" on the winners' podium.
Although Mersin has currently not much chance of pushing Istanbul and Antalya from the first and second places, this province is gaining momentum very fast. And this encourages investors – current and potential – to examine it very closely.