Foreign Buyers Abandon Turkey’s Property Market as Sales Drop to Covid-Era Lows

Foreign demand for Turkey real estate collapses to pandemic levels

Foreign appetite for Turkey property fell sharply in March 2024, leaving sales to overseas buyers at levels last seen during the Covid lockdowns. In plain terms: just over 1,350 residential properties were bought by non-Turkish nationals that month, a fall of about 20% year on year. That decline goes beyond a simple seasonal wobble and raises real questions for investors weighing up real estate investment in Turkey.

We cover what the numbers mean, why buyers have pulled back, which nationalities remain active, and what investors should do next. In our analysis we use the latest reported figures and direct comments from Turkish property economists and appraisers to explain the drop and its implications for buyers and the market.

What the March fall tells us about the Turkish property market

The headline figure is stark: overseas buyers purchased just over 1,350 residential properties in March 2024, a 20% decline compared with March a year earlier. That puts the market back at Covid-era volumes and implies more than a temporary slowdown.

Key data points from the first quarter:

• Russians and Iranians remained the top foreign buyer groups in the first quarter of 2024, but both saw falling activity.
• Purchases by Russian buyers fell about 10% compared with the same period a year earlier.
• Purchases by Iranian buyers fell 15% over the same comparison.

Those drops matter because Russians and Iranians have been consistently among the largest foreign buyer groups in recent years. A decline among them suggests the issue is not a single-country blip but a broader loss of appeal for Turkey as an investment destination.

Seasonality explains part of the March weakness: property sales often soften during Ramadan. But analysts and industry voices quoted in the reporting say the causes run deeper than calendar effects.

The drivers behind the slump: policy, macroeconomics and geopolitics

Several interlocking factors are reducing Turkey’s competitiveness for foreign buyers. These are not independent; they multiply risk in the eyes of buyers and agents.

Policy changes that hit investor incentives

• In 2018 Turkey lowered the minimum qualifying real estate investment for citizenship from $1,000,000 to $250,000, which triggered a surge in foreign purchases.
• At the end of 2022 that minimum was raised again to $400,000. Trade and appraisal specialists say sales began to cool after that change.

Cansel Turgut Yazızı, general manager of EVA Real Estate Appraisal Consultancy Company, said that the return to a higher threshold made Turkey less appealing relative to nations that still offer attractive ‘golden visa’ or citizenship-by-investment programs.

Macro headwinds: inflation, interest rates and the lira

• Turkey has been dealing with high inflation and official interest rates above 30%.
• The central bank has intervened heavily to defend the lira.

High interest rates and currency volatility increase the cost and complexity of owning property in Turkey for foreign buyers. Financing becomes more expensive, local income streams can be eroded by inflation, and currency risk makes returns uncertain for investors repatriating profits or selling in foreign currency.

Geopolitical risk from the Gulf conflict

The conflict in the Gulf has hit Turkey indirectly through energy-import costs and through a more febrile political environment. Analysts say geopolitical risk reduces the appeal of long-term property ownership when buyers are choosing between multiple destinations offering resident or citizenship incentives.

Legal and institutional concerns

Economists and appraisers quoted in the reporting flagged weak legal protections and slow judicial processes for property disputes as a major deterrent. Ahmet Büyükduman, a real estate economist, said that the legal protection of ownership and speedy legal processes are key for assets, and urged policymakers to consider improvements to Turkey’s legal infrastructure.

Why those legal issues matter for foreign buyers:

• Title risk and long, uncertain court timelines raise the potential cost of litigation.
• Foreign buyers tend to pay premiums for perceived security; if that security falls, they shift elsewhere.

Who is still buying, and who is fleeing?

The headline buyers in the first quarter were Russians and Iranians, but both groups are reducing activity.

• Russian buyer purchases fell by around 10% in the first quarter versus the same period a year earlier.
• Iranian buyer purchases fell about 15% in the same comparison.

That pattern suggests wealth holders from nearby regions are weighing Turkey against other options and sometimes choosing alternatives. Turkey’s traditional advantages — geographic proximity to energy and wealth flows from the Middle East and Eurasia — are not enough right now to offset policy or macroeconomic drawbacks.

In our view, the remaining pockets of foreign demand will be selective and price-sensitive. Investors who still buy will look for:

• Clear title and fast transfer processes
• Properties with established rental demand or demonstrable income
• Deals priced to reflect currency and legal risk

Sellers and developers that can guarantee legal clarity and predictable handover schedules will have a relative advantage.

Practical advice for buyers and investors

If you are considering property in Turkey today, you must plan for a market with elevated legal, currency and macro risks. Here is a practical checklist based on the current dynamics:

Due diligence and legal safeguards

• Hire a Turkish lawyer experienced in foreign-title transactions and property litigation.
• Confirm land registry information and check for encumbrances.
• Ask for a timeline and contractual penalties for delayed handover or non-delivery.

Currency and financing strategy

• Avoid large unhedged exposures if your income is in a foreign currency.
• Consider structuring purchase contracts with currency clauses or payment tranches to reduce FX shock.
• Expect local finance to be expensive if available, given advertised interest rates above 30%.

Assess the citizenship-by-investment angle carefully

• If your primary motivation is residency or citizenship, make sure you understand current thresholds and timelines: the qualifying real estate threshold was raised to $400,000 at the end of 2022.
• Don’t assume rules will remain constant; legislative changes have shifted buyer behavior in the past.

Exit planning and yield realism

• Model returns using conservative assumptions on rental growth and resale prices to account for inflation and currency moves.
• Prepare for longer marketing periods and price negotiation if you need to sell quickly.

Our analysis: buying is still possible and sometimes attractive, but you cannot treat Turkey the same way you would a lower-risk market. The premium you pay for access must buy you legal clarity and risk mitigation.

What policy changes could bring buyers back?

Economists and market participants identified several reforms that could restore confidence among foreign buyers.