Iraqis were the biggest foreign buyers of real estate in Turkish market a few years ago. The Qataris could well be the next… As for the Europeans, they are well ahead of them.
Villa on the Bosphorus, apartment in Antalya or pied-à-terre in Bursa… Turkey has continued to attract foreign investment in real estate in recent years. This is highlighted in the latest report published by the Turkish Statistical Institute (TÜIK). In recent years, 22,234 homes have been sold to foreigners, 22.2% more than in 2016. Figures that have exploded in five years: until recently, official figures counted only 12,181 properties sold to foreigners .
The profile of buyers has also evolved over time. Ten years ago, it was mainly European investors from Ireland, England, the Netherlands or Germany. Today, buyers from the Middle East are the biggest investors in real estate in Turkey. At the top of the podium, the Iraqis with 3,805 homes acquired in 2017. They are followed by buyers from Saudi Arabia and Kuwait. The report states that Istanbul is the most coveted region in Turkey, followed by Antalya, Bursa, then Yalova.
Turkish real estate market : An attractive law for foreign investors
A law passed ten years ago partly explains the boom observed in the sale of properties to foreigners over the past five years. The Turkish government now offers citizenship to foreigners who buy real estate worth at least $1 million. Turkish real estate players are also calling on the authorities to reduce the amount of this level in order to stimulate sales to foreign investors and thus promote the construction sector, which represents more than 8% of gross domestic product (GDP) in Turkey.
For the years to come, specialists in the real estate sector intend to continue to attract foreign investors, starting with the Qataris. Turkish real estate developers were meeting with their Qatari counterparts to discuss, among other things, investment opportunities around Kanal Istanbul, which should be completed by 2023.
This “crazy project”, as it is nicknamed, will consist of a new canal 400 meters wide and 45 kilometers long, parallel to the Bosphorus, in the western part of Istanbul. Its final route was officially unveiled on January 15. The canal will begin by crossing Lake Küçükçekmece, south of the European part of the city, and then join the Black Sea, in the district of Arnavutköy, north of the city. It will also cross the districts of Avcılak and Başakşehir.
Nearly 23,000 properties are expected to be built around the canal, reports Hürriyet Daily News. Opponents of the project denounce the land speculation that will result from it, in a city in full expansion.