Real estate ownership in Turkey - February 2021

The recovery in the real estate ownership sector in Turkey continues for the second month of 2021, as last February witnessed a clear continuation of real estate sales to foreigners in Turkey, especially members of the Arab communities, according to a report by the Turkish Statistics Institute seen by Fanar Realty. 

In this article, we will introduce you to the accurate statistics of real estate sales in Turkey to foreigners during the second month of this year, with readings and analyzes of the implications of these numbers and statistics, and the future of real estate investment in Turkey in the coming months.

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About 3000 properties in Turkey for foreigners in February 2021

According to the monthly statistics of the Statistics Institute of Turkey, real estate sales to foreigners in Turkey during February 2021 amounted to about 2,995 properties in Turkey, achieving an increase of 10.34% within one month. With a closer reading, we can say:

• The average rate of real estate ownership in Turkey by foreigners during one day: between 106 and 107 properties

• The average rate of real estate ownership in Turkey by foreigners during one hour: between 4 and 5 properties

• The state that witnessed the most real estate sales to foreigners during February 2021: Istanbul (1525 properties)

• Most foreigners who own real estate in Turkey have Iranian citizenship (577 properties)

In the coming paragraphs, detailed and accurate information about the statistical and analytical aspects of real estate sales during February 2021. This statistic comes about a year after the start of the Corona crisis in Turkey, which means that it has great and deep implications for the recovery of the real estate sector in Turkey, and neutralizing it from the damage caused by measures to combat the spread of the Coronavirus in the country.

The most popular nationalities to own real estate in Turkey

For about a year ago, the first three ranks appeared to be stable for the nationalities who own the most real estate in Turkey, namely: Iranian, Iraqi and Russian, and competition appears in its peak between Iraqis and Iranians to top the list of the most foreigners owning real estate in Turkey. 

The twenty most nationalities owning real estate in Turkey

the following is the comprehensive statistic of the most twenty nationalities whose children owned real estate in Turkey during the past month, along with the number of real estate sales they completed during the mentioned period:

Arab ownership of the real estate in Turkey

The number of real estates owned by Arabs in Turkey during the past month exceeded the 1,200 marks, with Arabs receiving 40% of the total real estate sales to foreigners. As mentioned in the above table, 8 Arab countries have won first seats in the list of countries that buy most real estate in Turkey, and for the Iraqis, they occupy second place, with a very small difference between them and the Iranians, in a fierce competition for the top of this list. 

Absence of Gulf Arabs from the real estate market in Turkey

Before the Corona crisis, the Gulf people had recorded a prominent presence in the real estate market in Turkey, but since the middle of last year there has been a clear gradual decrease in the Gulf’s demand for owning real estate in Turkey, and their presence remains at the forefront of real estate buyers, with the exception of Kuwaitis who bought 41 properties last month only. This absence, or to call it "the shy presence below the standard" of Gulf nationals in the field of buying real estate in Turkey, is explained by three main points:

• Gulf people tend to invest in the stock market, not real estate

• Gulf real estate purchase is based on the principle of luxury, not investment

• Real estate investment incentives in Turkey "such as real estate residency and Turkish citizenship" are not considered relatively important for the Gulf investor.

Read also: Gulf investments in Turkey

The reason for the increase in Iranian and Russian ownership in Turkey

The increasing Iranian and Russian demand for real estate ownership in Turkey has several reasons, perhaps the most important of which are:

• The political rapprochement between these three countries: Turkey, Iran, and Russia

• Turkey's growing attractiveness to Russian and Iranian tourists

• Investors from Russia and Iran are heading towards Turkish real estate to save their money from exchange rate fluctuations in their countries

• Turkey does not impose restrictions on real estate ownership for Russians, Iranians and other foreign nationals, and this enhances the desire of foreigners to own property in Turkey.

Which Turkish states are the most attractive for real estate ownership?

After reviewing the information about the foreign nationalities who own real estate in Turkey, we must ask:

Where do these foreigners prefer to buy their real estate in Turkey?

In fact, Istanbul has no competitor in its attractiveness to foreign investors and those looking for real estate for sale in Turkey, as it is the first and has the largest balance of real estate sales for Turks and foreigners. 

The following are the statistical details of the numbers of properties sold to foreigners in the ten most attractive Turkish states for foreign investors:

Notes on Real Estate Ownership Statistics in Turkey - February 2021

You have read in detail the exact figures of the number of properties sold to foreigners in Turkey, during the last month, February 2021, but what does this statistic mean?

What are the observations we made in Fanar Realty recorded by reading this statistic?

• It has become axiomatic to talk about Istanbul as the best Turkish state to live and work in and to invest not only in the real estate field but in all economic fields available in Turkey.

• Iraqis in Turkey maintain a distinguished leader in the list of foreign real estate buyers, and their interest is primarily in Istanbul and Ankara.

• Most of the real estate sales for Russians in Turkey are in Antalya, while Iranians prefer Istanbul for housing and investment.

• The Egyptians, Lebanese, Sudanese, Jordanians, and Palestinians have recently increased their demand for real estate purchases in Turkey, while Kuwaiti, Qatari, Saudi and Emirati demand has declined.

• This reflects the continuity of the real estate sector in its activity inside Turkey and the presence of many nationalities that still dream of owning in Turkey, as there is no place for stagnation in the Turkish real estate market for foreigners.

• During the last period, the percentage of real estate ownership by Afghans, Azeris, and Kazakhs increased, as well as the Chinese forming a good presence, albeit below the required level.

• As for the Turkish states, there is still a great correlation between the preferred states for housing and residence, and between the tourist and vital states, and there is no serious movement outside the circle of the first ten states, which is repeated in almost every statistic, despite the presence of dozens of other Turkish states, this point makes us sure that the market Real estate in Turkey needs to search out of the ordinary and usual to get unique opportunities to own real estate in Turkey.

• The number of real estate sales to foreigners in Turkey since the beginning of the year has reached 5707 properties, and this number is still lower than the statistics for the same period in 2020 before the start of anti-Corona measures in Turkey last year, as the number of properties sold to foreigners at that time reached 7,993 properties.

• The road is still difficult for real estate activity to return to the previous track, and to advance real estate sales to levels commensurate with the ascending line before Corona. However, what we see is a clear recovery, and with the presence of Turkish facilities and laws encouraging real estate ownership for foreigners, the upward streak will return to its previous state in a short period.

So it is not an ordinary statistic, but rather it represents one of the most important features of the gradual return to the brilliance of the real estate market in Turkey and its rise in the usual way, and the expectations desired from it, and this matter depends on the flexibility of real estate laws in Turkey and its ability to keep pace with emergency changes and conditions that hinder real estate investment or limit its options. 

Statistical source: National Statistical Institute of Turkey 

Editing: Fanar Realty