Specialists have conducted a detailed analysis of transactions concluded last year by foreigners regarding residential property in Turkey, comparing the indicators with previous years. Therefore, today, we’ll delve into who is buying what and for how much, as focusing on demand trends facilitates the determination of preferences. At least, the provinces most sought after by overseas investors are likely to remain so in the coming years.
However, the figures for 2023 do not please local market players: the volume of transactions with foreigners decreased by almost half compared to 2022.
The analysis was provided by EVA Real Estate Appraisal, which obtained figures from the Turkish Statistical Institute TUIK, a company specialising in property valuation. Here’s how the market "subsided" over the past year: the total number of square metres bought by foreigners decreased by 48% (from 8,338,976 to 4,354,216 square metres) and the number of transactions with international investors dropped by 46%. A total of 35,005 contracts were signed during the year, down from over 65,000 a year earlier. The Turkish Statistical Institute recorded the most significant drop of -61.1 per cent in the 4th quarter.
The share of housing sold to foreigners in the total volume of transactions was 4.54 per cent in 2022; however, in 2023, it fell to 2.86 per cent.
Content:
- Demand by country
- Top 10 countries by number of deals concluded in 2023 (for the full 12 months)
- The 10 provinces favoured by foreigners
- Conclusion
Demand by country
Saudi Arabia ranks first in the total area of property purchased. Eastern clients invest with scale and have long been accustomed to large properties. Germany follows in second place, followed by Iraq, Kuwait, the USA, Azerbaijan, Iran, Ukraine and Kazakhstan.
However, Iranians lead in terms of the number of transactions with Iraq, Ukraine, Germany, Kazakhstan, Saudi Arabia, Kuwait, Azerbaijan and the United States following closely behind.
Top 10 countries by number of deals concluded in 2023 (for the full 12 months)
| Country | Acquired area (m²) | Number of housing units purchased (pcs.) |
|---|---|---|
| Iran | 66,765 | 4,818 |
| Iraq | 142,081 | 2,016 |
| Ukraine | 23,868 | 1,813 |
| Germany | 190,059 | 1,801 |
| Kazakhstan | 20,845 | 1,414 |
| Saudi Arabia | 313,628 | 1,161 |
| Kuwait | 128,871 | 995 |
| Azerbaijan | 70,322 | 962 |
| USA | 70,635 | 828 |
- Thus, the average area of one lot purchased by a Saudi national was 270 m².
- Gulf countries accounted for 2,574,224 square metres purchased out of 4,354,216 sold to foreigners, totalling 13,137 housing units.
- Gulf countries accounted for 59% in terms of square metres and 33% in terms of the number of transactions of the total investment.
Top 10 countries (2022)
| Country | Acquired area (m²) | Number of housing units purchased (pcs.) |
|---|---|---|
| Iran | 185,097 | 9,023 |
| Iraq | 396,656 | 6,409 |
| Germany | 298,409 | 3,211 |
| Ukraine | 35,878 | 2,593 |
| Kazakhstan | 35,528 | 2,557 |
| Afghanistan | 288,519 | 2,271 |
| Kuwait | 280,920 | 1,889 |
| USA | 396,896 | 1,609 |
| Azerbaijan | 132,880 | 1,515 |
- Gulf countries accounted for 5,016,586 m² out of 8,338,976 m² sold to foreigners, totalling 28,560 housing units.
- Gulf countries accounted for 60%(in terms of square metres and 38% in terms of the number of transactions of the total investment.
Top 10 countries (2021)
| Country | Acquired area (m²) | Number of housing units purchased (pcs.) |
|---|---|---|
| Iran | 149,214 | 11,272 |
| Iraq | 297,563 | 9,201 |
| Afghanistan | 339,269 | 5,681 |
| Germany | 349,454 | 2,969 |
| Kazakhstan | 27,880 | 2,134 |
| Kuwait | 376,140 | 2,079 |
| USA | 344,025 | 1,689 |
| Azerbaijan | 26,910 | 1,652 |
| Yemen | 225,639 | 1,629 |
- Gulf countries accounted for 5,338,738 m² out of 8,755,786 m² sold to foreigner, totalling 34,852 units.
- Gulf countries accounted for 61% in terms of square metres and 51% in terms of the number of transactions of the total investment.
The 10 provinces favoured by foreigners
As per data for the 12 months of 2023, in terms of total square metres, foreign investors bought the most real estate in Istanbul. However, Mersin claimed second place, with Antalya, the "resort capital" of the country, ranking third. Following these are Yalova, Bursa, Mugla, Kocaeli, Trabzon, Ankara and Izmir.
Regarding the number of deals, Istanbul remains the clear favourite, with Antalya stubbornly maintaining second place. Mersin follows in third place, trailed by Yalova, Bursa, Ankara, Izmir, Muğla, Kocaeli and Trabzon.
Top 10 cities (2023)
| Province | Acquired area (m²) | Number of housing units purchased (pcs.) |
|---|---|---|
| Istanbul | 497,117 | 13,804 |
| Antalya | 181,893 | 12,901 |
| Mersin | 292,928 | 3,104 |
| Yalova | 159,695 | 1,208 |
| Bursa | 152,157 | 1,137 |
| Ankara | 28,982 | 1,129 |
| Izmir | 30,991 | 871 |
| Muğla | 107,479 | 765 |
| Kocaeli | 99,644 | 686 |
| Trabzon | 54,282 | 684 |
In Istanbul, citizens of other countries purchased nearly 500,000 square metres of residential space, while in Mersin, they acquired nearly 300,000 square metres. This occurred despite the significant decrease observed by 2022, with a 48% reduction in purchased area (from 8,338,976 square metres to 4,354,216 square metres) and a 46% decrease in the number of sales, as previously mentioned).
Property purchases for accelerated citizenship accounted for 717,512 square metres in the country, which represents 16% of the total volume purchased by foreigners. In terms of transactions, it constituted 18% (7,335).
Top 10 cities (2022)
| Province | Acquired area (m²) | Number of housing units purchased (pcs.) |
|---|---|---|
| Istanbul | 964,193 | 29,077 |
| Antalya | 493,564 | 22,017 |
| Mersin | 171,370 | 4,253 |
| Ankara | 133,567 | 2,833 |
| Bursa | 313,084 | 2,329 |
| Yalova | 247,855 | 2,226 |
| Izmir | 71,414 | 1,485 |
| Muğla | 195,504 | 1,340 |
| Sakarya | 411,182 | 1,292 |
| Kocaeli | 276,633 | 1,087 |
Based on the tables, 2022 was a "stellar" year; foreigners purchased almost 1 million square metres of property in Istanbul, equivalent to nearly 30,000 units. Antalya reached roughly half a million square metres (22,000 transactions). Over 400,000 square metres were bought in Sakarya, known to investors as an industrial centre. Just over 300,000 square metres were sold in Bursa, almost 300,000 square metres in Kocaeli, a quarter of a million in Yalova and nearly 200,000 square metres in Mugla.
In 2022, almost 3 million square metres of housing were purchased for citizenship purposes, totalling 17,951 lots sold. This represents 36% by metre and 24% by the number of properties, respectively.
Top 10 cities (2021)
| Province | Acquired area (m²) | Number of housing units purchased (pcs.) |
|---|---|---|
| Istanbul | 443,764 | 31,478 |
| Antalya | 511,045 | 13,010 |
| Ankara | 154,694 | 3,870 |
| Mersin | 207,935 | 2,600 |
| Yalova | 177,505 | 2,238 |
| Bursa | 1,007,306 | 2,067 |
| Izmir | 90,053 | 1,610 |
| Sakarya | 383,200 | 1,412 |
| Mugla | 286,454 | 1,213 |
| Samsun | 65,445 | 1,105 |
In 2021, Antalya emerged as the favourite in terms of purchased area, primarily due to lower prices, enticing buyers to acquire larger residences. Bursa showed explosive growth, surpassing 1 million square metres of residential space sold to foreigners.
To obtain a Turkish passport faster, foreigners purchased 3,086,394 square metres of housing, totalling 15,071 residential lots This constituted 35% of the total volume in square metres and 22% in the number of residences, respectively.
Conclusion
The list of the top 10 favourite provinces remains virtually unchanged yearly, with Istanbul, Antalya, Muğla and for the last few years, Mersin consistently in demand. Izmir is also in high demand as it’s an economic and educational centre, a metropolis and located on the Aegean Sea. Yalova is one of the provinces closest to Istanbul and housing here is cheaper, which explains the high demand.
Based on the indicators presented, considering the exact figures and dynamics over the past 3 years, you should consider choosing housing in Turkey. There are exceptional beautiful and earthquake-resistant development projects in Turkey’s favourable locations entering the market from reliable developers, nearly every week. Contact our consultants for expert advice!