How did foreigners actively buy real estate in Turkey in 2022?

According to the Turkish Statistical Institute (TurkStat), there was an exceptionally high growth in real estate transactions made by foreign citizens in 2022, amounting to 15.2%. Foreigners purchased a record 67,490 housing units, the highest figure since the start of data collection in 2013. To understand the scale, it is worth mentioning that in 2021, 58,576 transactions were registered, indicating a significant increase in interest. However, overall in the country, the total number of transactions in 2022 slightly decreased to 1,485,622, which represents a decline of just 0.4%. Excluding 2020 from the equation, this year was successful due to the launch of a subsidized mortgage program, which was activated in mid-2020. It significantly boosted interest in real estate among local residents.

Trends in the real estate market

The observed dynamics of the last two years show a decrease in the number of transactions made by local buyers, in contrast to the growing share of foreign buyers in the market, which now stands at 4.5%. In the context of global trends, this figure is certainly not a record: for example, in Cyprus, foreign citizens account for over 20% of the total number of transactions. Since 2016, the number of residential property sales to foreigners in Turkey has steadily increased, except for 2020, when due to the pandemic, this number slightly decreased, but by less than 10%, thanks to the rapid reopening of borders in the summer.

Preferences of foreign buyers

As for the preferences of foreign buyers, Istanbul remains the most popular destination, with 24,953 transactions completed. Following closely is the province of Antalya, known for its beaches and resorts, with 21,860 transactions. Rounding out the top three is Mersin, which has become particularly desirable for buyers with 4,316 transactions.

Leaders among foreign buyers

This year, Russians have become the leaders among foreign buyers in Turkey for the first time, registering 16,312 transactions, which is a significant increase compared to 5,379 transactions in 2021. Also among the active buyers are Iranians and Iraqis, with 8,223 and 6,241 transactions respectively. Germans, who have also shown activity, account for 2,705 transactions. Citizens of Kazakhstan, with 2,702 transactions, show growth compared to 2,090 last year, while Ukrainians completed 2,574 transactions, increasing their interest from 1,246 in 2021.

Dynamics of demand for Turkish real estate

There was a high demand for Turkish real estate throughout the pandemic, but a real boom occurred in February 2022, peaking in June. At the beginning of the summer month, the number of transactions by foreigners increased by 81.8% compared to June 2021, reaching 8,630 transactions. However, in July, there was a sharp decline in interest, although the market became active again by the end of the year: in November and December, TurkStat recorded over 6,000 transactions.

In summary

Statistical data also confirms the growing interest in real estate in Turkey: the volume of online inquiries has increased more than threefold, indicating significant interest from foreign buyers. This is evidence thatTurkey continues to be a significant player.on the international real estate market and rightly attracts the attention of investors from all corners of the world.

Key aspects of investing in real estate in Turkey

Acquiring real estate in Turkey for foreign citizens is an important step, as it opens the door to obtaining a residence permit, which effectively allows for long-term stay in the country.

Updates regarding the residence permit

Starting from July 2022, the Turkish government began to implement gradual restrictions on the ability to obtain residence permits, reducing the number of districts where this is possible. By the end of 2022, there were more frequent cases of refusals to issue permits for renters. However, as of today, there is no official ban, and difficulties during the application process most often arise in coastal cities and towns located along the Mediterranean coast.

Factors to consider when choosing a home

There are many factors to consider when choosing housing in Antalya or Alanya for the purpose of obtaining a residence permit.

• Information about closed and open areas provides valuable insights for investors.
• Despite the existing restrictions, the number of foreign citizens who have obtained residence permits in Turkey has significantly increased – it has grown sevenfold over the past ten years.

Statistics on residence permits

According to migration authorities, at the beginning of 2023, there were 1,356,925 foreigners with residence permits in Turkey. The largest number of such permits was issued in:

• Istanbul — 706,526 people
• Antalya - 158,494 people

Historical data

For a more detailed understanding: at the beginning of 2022, the number of foreign citizens with residence permits in Turkey was 1,354,094, while in 2020 this figure was only 886,653. By the beginning of 2023, there were 153,639 Russians among the residence permit holders in Turkey, which marks a historical record and absolute leadership among all nationalities. In January 2022, only 66,717 Russians had various types of residence permits.

Top countries for residence permits

In second place for the number of permits issued are citizens:

• Iraq — 131 132
• Turkmenistan — 115,404
• Ukraine — 47,201
• Kazakhstan - 45,504

This data was provided by the Ministry of Internal Affairs of Turkey and is current as of January 12, 2023.

Rise in real estate prices

The rise in real estate prices in Turkey in 2022 was a sharp phenomenon against the backdrop of overall inflation, which exceeded 80% by the end of the year. According to data for the third quarter (compared to the third quarter of 2021), the cost of real estate increased by 190% without taking inflation into account, and by 57% when adjusted for inflation. However, it is important to note that these figures were obtained against the backdrop of a significant decline in the value of the lira in the second half of 2021.

Average housing prices

According to research by the valuation platform Endeksa, in December 2022, the average price per square meter of housing in Turkey was 13,824 lira, which is equivalent to 735 US dollars. The average price of a residential property reached 1,797,000 lira (95,634 dollars). The annual growth rate of housing prices in lira was 164%, and the average time required to recoup investments is 19 years.

Conclusions

Thus, it can be stated that the real estate market in Turkey continues to actively develop, providing numerous opportunities for foreign investors looking to place their funds.

Recently, there has been a significant increase in real estate prices in Turkey. This is especially noticeable in provinces like Muğla, where the famous resorts of Bodrum, Marmaris, and Fethiye are located, as well as in Antalya and its surroundings, including the city itself and Alanya. A sharp rise in prices is also observed in Istanbul. The average rates per square meter in these regions have already exceeded $2000, and over the past year and a half, the cost of real estate in dollars and euros has tripled. These sharp price changes are causing concern among the local population, leading to the need for government measures, especially considering the upcoming presidential elections in 2023.

Government initiatives

Among the recent initiatives of the government, one can highlight the introduction of restrictions on the issuance of residence permits (RPs) in regions where the share of foreign ownership exceeds 20%. This decision aims to stabilize the situation and control price growth to avoid a potential economic bubble. One of the key initiatives of the country's president is the launch of a large-scale project for the construction of social housing, aimed at supporting low-income citizens who wish to purchase their own apartments.

Economic indicators

In 2021, the country's economic indicators recorded a record growth of 11.4%, marking the best result in a decade. This was, in turn, linked to Turkey's openness to foreign investments. The decline in the value of the Turkish lira also made real estate in the country more accessible to foreign buyers. International clients have limited alternatives, and despite price fluctuations, a sharp drop in apartment prices is not expected in the coming months. Buyer interest will remain high, which is unlikely to lead to a decrease in value.

Examples of real estate

• Apartment in Alanya70 square meters, price 151,000 euros, the possibility of obtaining a residence permit upon purchase. Remote viewing and purchase using cryptocurrency are available. The new project is located near the ring road and educational institutions, construction began in December 2022, and a luxury residential complex with 128 apartments is planned.
• Apartment in Alanya65 square meters, priced at 215,000 euros. Fully furnished accommodation located 150 meters from Cleopatra Beach. All necessary infrastructure, including shops and restaurants, is nearby.
• Another optionA 70 square meter apartment for 119,900 euros, with a 1+1 layout and all the amenities for comfortable living. Payment is possible in rubles and cryptocurrency.

Thus, despite the current price fluctuations and uncertainty in the economic situation, the real estate market in Turkey continues to be attractive for both the local population and foreign investors. Key factors contributing to this include the affordability of housing and the variety of offerings.

A 1+1 layout apartment with a total area of 70 square meters is for sale. The property features an open-plan kitchen, a bedroom, a bathroom, and an open balcony. It is worth noting that this residence is available unfurnished.

We have a magnificent villa in our portfolio that can be furnished and customized right away, providing the new owner with the opportunity for comfortable living from day one. The residential complex features not only a swimming pool but also a designated parking area, making life here even more enjoyable. Additionally, our catalog offers apartments in Mersin, Turkey, with a total area of 78 square meters, which include 2 bedrooms and 1 bathroom. Their price is 50,000 euros. You can also arrange an online viewing and conduct the transaction remotely, with the option to pay in rubles or even in cryptocurrency.

Modern apartments in Mersin

Our offer includes modern apartments in a residential complex located in one of the most sought-after areas of Mersin — Arpacbahsis. This is a fantastic opportunity to purchase housing at a price significantly below the market rate. The complex consists of three 16-story high-rise buildings designed in a contemporary architectural style, and the administration takes care of the landscaping, creating green and cozy outdoor spaces.

Apartments in Beylikdüzü

Moving towards Beylikdüzü, you can find apartments priced at 258,000 euros. These apartments have a total area of 118 square meters, featuring 3 rooms and 2 bathrooms. When purchasing such apartments, you will also be able to obtain a residence permit. This complex offers stunning sea views and an indoor pool. The ready-to-move-in apartments are located just a few kilometers from the Beylikdüzü marina and metro station, as well as 5 kilometers from the main E-5 highway. This advantageous location provides quick access to the center of Istanbul.

Apartment in Mersin

Our portfolio also features an apartment in Mersin with an area of 51 m² for €109,750. This property includes 2 rooms and is perfect for rental investment. The complex offers stunning panoramic views of the Mediterranean Sea and is just a few minutes' walk from a beautiful beach in the Teje area. It has year-round infrastructure, making it an ideal place to live.

Apartments in Alanya

If you are looking for apartments in Alanya, we have an offer priced at 142,000 euros. These apartments have a total area of 100 square meters and include 3 bedrooms and 2 bathrooms. As with previous cases, purchasing these apartments also allows you to apply for a residence visa.

Luxury real estate options

If you are interested in more luxurious options, it is recommended to pay attention to stylish apartments in a large complex located in Nilüfer, Bursa. These 154 m² apartments with 4 rooms will cost you 139,000 euros and also provide the opportunity to obtain a residence permit. Nilüfer is known for its clean air and pleasant natural conditions, making it particularly attractive for living.

Spacious villa in Milas

If you need more space, we can offer a villa in Milas with a total area of 400 m², which includes five bedrooms and four bathrooms, priced at 3,000,000 euros. This villa will become your personal oasis of comfort and style.

Apartment in Alanya

There is also an apartment available in Alanya with an area of 65 m², priced at 75,000 euros. This property is located in Jasmine Port Suite, one of the most picturesque and popular places in Turkey, where the sun shines for about eight months a year.

Results

Thus, a multitude of options for purchasing real estate in Turkey suitable for comfortable living and vacationing opens up before you. They cater to various needs and budgets, and all transactions can be organized remotely, making the buying process as convenient as possible for clients.

Conclusion

In conclusion of my article, I would like to summarize some key points regarding the real estate market situation in Turkey. Undoubtedly, 2022 was a significant year for this segment, demonstrating a record increase in the number of transactions made by foreign buyers. This highlights not only the sustained interest in Turkish real estate but also the intensification of competitive conditions in the market.

I was struck by how Russians have come to dominate among foreign buyers, significantly outpacing traditional market participants. This phenomenon clearly indicates an increase in Turkey's attractiveness as a country for real estate investment. It is also worth noting that despite economic difficulties and restrictions on obtaining residency permits, the demand for housing continues to grow. This suggests that Turkey:

• it will continue to hold its place on the list of popular destinations for real estate purchases for a long time,
• represents a stable market in the long term.

According to the data, despite the imposed restrictions,the number of foreignersThe number of people acquiring real estate in Turkey continues to grow. This also means that housing prices, which are rising faster than inflation, may become even more attractive to future investors looking for opportunities to preserve and increase their assets.

Prospects of the real estate market in Turkey

The real estate market in Turkey continues to grow and develop, offering new opportunities for both local and foreign players. Considering not only economic factors but also cultural, geographical, and historical connections, this sector has every chance for further success. Thus, I hope that my article was able to highlight the main trends and current issues in the Turkish real estate market, assisting potential buyers in making informed decisions.

Forecasting the next steps, one can confidently assert that interest in Turkish real estate will remain high, while the market conditions will continue to change, prompting both investors and property owners to pay closer attention to new trends and realities.