Almost a year has passed since numerous Russian Federation nationals speeded up their relocation to Turkey due to political events. One rented a house, and one rushed to complete a long-planned purchase, and all for a good reason: prices on average for 2022 increased by 180% across the country.
We discuss the changes that have occurred in the last year, particularly in recent months, in Antalya, the most sought-after province among the Russians, and its most popular cities, Antalya and Alanya. After all, this has a direct impact on the quality of life of those who have relocated or are about to relocate to Turkey.
Content:
- Business with overseas capital in Turkey
- Housing and up-to-date rental prices
- Overseas nationals in Antalya and the situation with residence permits
- Will there be a new "Minimum Purchase Threshold"?
- What has become more difficult: Opening accounts
- What has become better: Schools, hospitals, and infrastructure
Business with overseas capital in Turkey
According to the World Federation of Exchanges, 20,135 companies with foreign participation were registered in the country in 2022 alone, with the majority of them headquartered in Istanbul (12,462). But many are in Antalya where there’s a considerable rise in this sense.
If foreigners only established 725 companies in Antalya in 2021, they founded 1,648 companies by 2022 - a 127% increase.
By the way, the number of companies registered by citizens of other countries in Turkey increased last year by 682% compared to 2021. The Russians set up 1,384 of these organisations.
Real estate, commercial services, and wholesale trade sectors proved to be the most appealing to foreign investors.
Housing and up-to-date rental prices
You will recall that in 2022, Russian (as well as Ukrainian) citizens acquired the most real estate in Antalya. In this city, the volume of real estate transactions rose by 76.5% compared to 2021, to 21,860 units.
More than a quarter ( 21,860) units of the 80,459 houses sold in Antalya province in 2022 (up 21% from 2021) were purchased by foreigners. And 40% of this volume came from Russians. When including the Ukrainians, the figure approaches 50%.
While, as previously stated, the national average increase in housing costs over a year is 180%, the figure in Antalya is much higher - more than 214% as of December 2022.
Ismail Caglar, the chairman of the Antalya Chamber of Realtors, Car Dealers and Entrepreneurs, clearly stated in a recent statement that the lowest monthly rent for an apartment in the city currently ranges between 6,000 and 7,000 Turkish liras (TL). For our part, we add that such residences are no longer available in the daytime with fire; tariffs of 8,000-10,000 TL and higher are much more common. Even a year ago, you could find a rental for 2,000 TL. The rates frequently reach 20,000-30,000 TL ($1,000-1,500 per month). And the daily rent is now 2,000 TL.
Unfortunately, fraud has become more common as people try to profit from the current situation. As a result, we need to once again remind you that if you need to rent a place, you should only contact the licenced agencies.
However, in the current social climate, it’s far safer to buy a place if such an opportunity arises, especially as many developers offer interest-free instalments until the end of construction.
Overseas nationals in Antalya and the situation with residence permits
Based on the most recent official statistics and according to Governor Ersin Yazici, Antalya has 177,000 foreign residents. There are approx. 51,000 Russians and approx. 20,000 Ukrainians among them.
There is a rule in Turkey that no more than 20% of the population of a given territory can be citizens of other countries with a residence permit (tourists, for obvious reasons, are not considered). This threshold has already been reached, if not exceeded, in cities such as Antalya and Alanya.
As a result, the authorities have been forced since last year to restrict the issuance of tourist residence permits based on renting real estate in this region in particular and they increased the control over the paperwork. And, as Russians who applied to various government agencies write on social media, the percentage of unjustified refusals has risen sharply, despite the denials of the Turkish side for a long time.
Since the beginning of 2023, Turkey has recognised the fact of "toughening" up: tourist residence permits will most likely be issued only to those who can demonstrate that they have come to get acquainted with the country, are willing to live in hotels, move from region to region, and study the country's history and culture. And, obviously, spend a lot of money.
For those who used to rent housing, and live in Turkey, sending their children to nurseries and schools while working remotely (or illegally earning extra money on the spot), "the shop is shut down" as they say.
In this sense, those who invest in property remain the best protected, particularly in Antalya and Alanya.
Will there be a new "Minimum Purchase Threshold"?
Petitions calling for a five-year ban on the sale of housing to citizens of other countries, which have circulated in Turkey's mass media and social media over the last year, are hardly to be feared as foreign investment is a huge infusion into the country's economy and foreign currency, and refusing this is unlikely to happen.
Certain restrictive measures, primarily of a financial nature, are possible and can also reach the most populous cities and regions. As a result, one option for resolving Alanya's "price housing crisis" is to raise the min. amount for purchasing real estate to obtain a residence permit for TAPU (the title deed or the right to own property) to $100,000. Remember that this "threshold" is currently $75,000 in the large cities and $50,000 in the small towns. There’s also a list of "closed" regions throughout the country where the owners will not be granted this permit even when the request for the amount of residence permit by right of ownership has been satisfied.
There are four Alanian districts among the 781 "closed" districts: Mahmutlar, Kargicak, Kestel, and Avsallar.
So the proposal of Mehmet Sahin, president of the Alanya Chamber of Commerce and Industry, for a "minimum of $1,000" is now officially on the agenda.
Many market participants agree that there’s no need to prevent foreign investors from purchasing real estate but that reasonable regulation will only benefit them.
What is the province's expected outcome? Economists have already calculated that by doing so, it will be possible to reduce the absurdly high rental prices in an overheated market, allowing Turks (who can no longer afford it) to once again rent apartments. The number of wealthy foreigners with a residence permit (currently over 52,000 in Alanya) will drop to 15,000-20,000.
This will also normalise the related economic segments.
Tourists wanting to explore the province of Antalya have no restrictions. By the way, over 36,000 visitors from the Russian Federation arrived in Antalya in the first 15 days of January 2023 alone.
What has become more difficult: Opening accounts
Previously, a foreigner needed only an international passport, which was received in 15 mins, a taxpayer identification number, and several tens of thousands of Turkish liras for a temporary deposit (and even then, these were not always required), but now the requirements have become more restrictive.
Banks generally no longer open accounts for citizens of other states, even if they have an existing residence permit somewhere. Some banks do allow it but with strict requirements. Furthermore, even within the same bank, the requirements may differ between branches in different cities.
Here are some examples from Alanya that Russians residing there recently shared on their accounts on social media:
- Garanti BBVA and Halkbank do not open accounts for foreigners;
- Isbank and Ziraat Bank both require €5,000 to be deposited into the account before it can be used (to conduct financial transactions), but the money in Ziraat Bank is "frozen" for up to 6 months.
- Vakif Bank also requires a €5,000 deposit (with a "freeze" period of up to 6 months) as well as 3,600 TL just to open an account.
What has become better: Schools, hospitals, and infrastructure
But, as one might say, the Russians have total freedom here: improvements are in all aspects. Retail outlets, stores, and tour desks have long been reconstructed, and at least one employee speaks the Russian language.
Currency exchangers accept rubles, albeit not at the best rate.
Recent innovations include the Antalya municipality's instalation of information boards in Russian, e.g., with information on urban transportation in the most densely populated Russian-speaking areas.
Another new bus route has been added to simplify travelling for those "without a vehicle" in the village of Mahmutlar, one of the most popular areas among the Russians for buying a home (the resort town of Alanya). It has the number 53 bus route and covers 26 kilometres, from Mahmutlar to Gozukcuklu.
A new nursery school, a 2,400 m2 kid's academy, is gaining popularity in the Oba district. It has a library, a music room, and even a mini-cinema, in addition to the obligatory dining room, bedrooms, and games rooms.
The Alanya Municipality is completing the Cultural and Educational Centre in Mahmutlar, which will primarily serve as a social function but also as an additional training centre, according to Adem Murat Yucel, the mayor of Alanya.
Antalya's territory as a whole has 89 new social, infrastructural, and technical facilities that are either open/soon to be open or are planned for all at once, ranging from sports grounds to establishments for the elderly and including the following:
- 41 educational institutions of all levels, from nursery to high school.
- The repaired and renovated building of Akdeniz University.
- Gyms and youth centres in diverse areas.
- 2,250 brand-new beds (in total) in dormitories in the territory of Kepez, Serik, and Alanya.
- A public garden in Serik.
- A retirement home in Muratpash.
On the territory of the province of Antalya are also many municipal and private colleges where Russian children with residence permits can receive their education.
Another important point is that an information and consultation centre for foreigners has been established in Antalya, where you can get help with almost any issue: paperwork, clarification of standard procedures, etc. Russia's Consulate General in Antalya officially announced the start of its work.