The selling of homes to foreigners in the Turkish housing sector over the previous year has achieved fantastic success. The demand for property for investment in Turkey is due to a number of reasons, but the goal of most transactions is obtaining Turkish residence permits and citizenship, as well as preservation and increase of capital.
Let’s consider the results of 2022: how many properties were sold, in which cities foreigners buy housing, what has changed in the rental market, as well as in terms of obtaining a residence permit and a Turkish passport. We will also talk about the forecasts of real estate experts for 2023.
Results of 2022: statistics and facts
Whereas earlier Turkey was considered a transit country for those planning to immigrate to Europe, today it is increasingly becoming the final destination of foreign citizens. According to official statistics, every year the number of people wishing to move to the Republic of Turkey for permanent residence increases.
Some are attracted by a confident geopolitical position and economic development of the country, a wonderful climate, while others are attracted by good business prospects, ease of legalization, and the opportunity to buy high-quality real estate and live in comfortable conditions on the Mediterranean coast. This became especially noticeable in 2022 against the backdrop of geopolitical crises and economic shocks.
In general, over 3 million transactions for the sale of real estate in the Republic of Turkey were concluded, of which 1.3 million were for residential purposes. At the same time, the share of foreign investment in housing has almost tripled compared to 2021, and 14,000 foreigners have received ownership.
The most common reasons why citizens of other countries invested in the Turkish real estate sector in 2022 are to obtain a Turkish residence permit and citizenship, to preserve and increase capital.
As a result of Turkey’s high levels of immigration, there is a lack of rental properties, which has driven up costs. Those who at least had a little amount of money hurried to invest their savings in Turkish housing market and were completely successful. Prices per square metre started to rise dramatically and are still rising, which guarantees a profit.
What changes affecting the real estate market in Turkey are possible in 2023
This year, presidential elections will be held in the republic, and each candidate will present his election program. Since issues related to the ban on obtaining a residence permit for foreigners on the basis of rental housing and raising the investment threshold for obtaining country’s citizenship are being actively discussed today, political decisions can be the most unpredictable.
Already now, foreign citizens are being massively denied a residence permit, and in those areas where the number of foreigners has reached 20% of the total population, they have completely stopped issuing Ikamet. So, in Alanya, the issuance of residence permits was suspended in Mahmutlar, Kestel, Avsallar and Kargicak. But citizenship if you have invested in real estate the sum starting from $400,000 is still issued here.
However, in terms of the investment program for obtaining a Turkish passport, changes may occur. Due to the incredibly huge number of applications for citizenship of the country, there are active discussions to increase the minimum investment threshold, that is, from $400,000 to $750,000 and even more. Whether there will be a real increase in the investment input for citizenship is not yet clear, but there are all prerequisites to witness this in the nearest future.
Experts believe that throughout 2023 the country will remain a “safe haven” and a desirable relocation destination of many foreign citizens, despite a serious increase in the cost of buying and renting a home.
Property price forecast in 2023
Given the unprecedented rise in prices for Turkish villas and apartments, experts agree that this trend will continue. There are absolutely no factors contributing to cheaper square meters in Turkey. On the contrary, demand continues to grow, and, most likely, at the end of 2023 it will be impossible to buy housing at 2022 prices. There are other prerequisites for the rise in price of Turkish housing:
- increase in the cost of construction;
- shortage of land plots;
- rapid development of the regions of the republic;
- lack of choice of rental offers;
- construction of large-scale projects in the country.
Some potential buyers are confused about the future developments in the country’s housing market and are wondering if property prices in the republic will fall. Based on the above information, the answer is obvious. At the pit stage, prices per square meter are 30–40% lower than their market value, but even these prices grow.
How will the appearance of large-scale infrastructure facilities affect the real estate market in Turkey
By the Day of the Republic of Turkey in Turkey, they plan to complete the construction of grandiose projects and please guests and residents of the country during the holiday. It’s about building:
- a large-scale airport receiving 150 million passenger seats;
- artificial islands on the coast of the Sea of Marmara;
- water channel as a link between the Black and Marmara seas.
It is obvious that the expansion of passenger capacity at the airport will have a positive impact on the tourist traffic of the country. Artificial islands will attract inquisitive tourists from many countries of the world, and the water channel will have a positive effect on the economic relations of the Republic of Turkey with other states.
Of course, the appearance of grandiose projects will lead to the intensification of the construction of new residential complexes, which will be distinguished by incredibly high profitability. And if you are still thinking whether it is worth buying property in the republic now, then you are wasting precious time.
Real estate in Turkey
Choose a property in the republic according to your preferences and budget expectations. Hurry before real estate prices in Turkey reach exorbitant heights!