Foreign sales of Turkish property have surged 75 per cent in the last year, as international buyers return to the country.
New data from TurkStat this week shows that the number of Turkish residential real estate transactions involving foreign buyers totalled 2,236 homes in September 2017, up 75 per cent on the same month in 2016.
Across the country, foreigners of various nationalities bought intended for residential use. The top 5 buyer groups were Iraqis (17 per cent), Saudis (15 per cent), Kuwaitis (7 per cent), Russians (5 per cent), British (4.6 per cent). Industry experts are excited by the news.
“This latest data reflects continued confidence in Turkey as well as its foreign investment plan. Incentives such as tax reductions and VIP citizenship are attracting international buyers and given these encouraging numbers, 2017 could well be a record year for Turkish house sales to foreigners. Interestingly the growth is also in line with the record number of houses sold to Turks during this period,” comments Julian Walker, MD of estate agency Spot Blue.
35 per cent of the homes sold (797) were in Istanbul, making the city the most popular location. Turkey’s largest metropolis has consistently been number one for real estate purchases by foreigners and Turks, as the city transforms by building new homes and skyscrapers.
Why are buyers returning to Turkey? See our 7 reasons why investment in Turkish property is increasing.
Weak pound to boost Turkish property appeal?
3rd April 2017
The weak pound could boost Turkish property’s appeal to international buyers, say agents.
UK sellers with homes in the country could offer “some of the best deals right now”, says estate agency Spot Blue, which specialises in Turkish real estate. Indeed, British-owned holiday homes being sold with a sterling price-tag have got considerably cheaper to buyers from Europe and the USA, or anyone purchasing with euros or dollars. This is thanks to sterling’s drop in value against key global currencies. Many of these properties are in prime locations in popular Turkish resorts.
“One custom-designed villa we have in the Fethiye area springs to mind as especially good value,” comments Julian Walker, director at Spot Blue International Property. “The British owner, who has a target Sterling price he wishes to achieve, bought the 1,000-square-metre plot from us in 2009 and employed an award-winning Turkish architect to design his 220-square-metre villa, which was completed in 2010. There are few properties like it in the local Calis area, where plots in prime locations are increasingly hard to find.”
Owner David Barber from Londonderry and his wife, Barbara, have enjoyed family holidays at the villa, but with their two adult children no longer based at home, they have decided to sell. Their property is on the market through Spot Blue International Property for £425,000.
Turkey is certainly looking to attract more international buyers to its housing market, with the announcement at the start of the year of a new Golden Visa scheme for foreign investors.
Golden Visa to boost Turkey’s property market?
25th January 2017
Turkey’s property market may be set for a turnaround this year, as the country introduces a new Golden Visa-style scheme to encourage foreign investment.
The new citizenship law, announced earlier this month, will mean that foreigners who invest in property worth at least $1 million and hold it for a minimum of three years will be eligible for Turkish citizenship. Alternatively, an eligible foreign investor can either make a fixed capital investment in Turkey worth at least $2 million, buy $3 million worth of government bonds or deposit the same amount in a Turkish bank, or create jobs within Turkey.
The scheme is similar to the Golden Visas offered by several European countries to non-EU citizens, with Portugal, in particular, enjoying strong demand from investors as a result. Since its program was launched in 2012, the total amount invested in Portugal stands at almost €2.4bn, with €2.14bn of that involving property purchases.
Turkey’s real estate market could enjoy a similar boost to its international sales this year, say agents.
Julian Walker, director of Spot Blue International Property, welcomes the law as a “welcome positive move that should help attracts buyers back”.
“The threshold of $1 million will suit wealthy Arab investors. Last year, Iraqis, Saudis, Kuwaitis and Russians bought the highest number of properties in Turkey. With this new law, we envisage this trend continuing, with interest from Syrians also growing,” Walker comments.
Indeed, in January, a senior Turkish Government official predicted the new law would trigger an extra $1 billion in revenue from property sales in 2017. Most of the sales are expected to be in Istanbul, with other areas of interest including the south-eastern provinces of Gaziantep and Kilis, and the Black Sea region.
“As a further sign of confidence, Turkey features on A Place in the Sun’s Best Places to Buy in 2017 list,” continues Mr Walker. “They highlight Fethiye, Kalkan and Bodrum as particular hotspots with buyers.”
Turkey was also one of the 10 most popular destinations on TheMoveChannel.com in 2016, responsible for 2.3 per cent of all enquiries, behind Italy, but ahead of Germany, Canada, Thailand and the UAE.
Turkey’s currency is also expected to bolster the country’s appeal to overseas buyers. For those not aiming for the $1 million Golden Visa threshold, the weak lira has fallen more than 15 per cent against the US dollar in the last year, making property more affordable.Google+