The month of March 2021 witnessed a great demand for the ownership of real estate in Turkey by foreigners, in the highest statistic since the beginning of this year.The editorial team at Fanar Realty has reviewed the official statistics issued by the National Institute of Statistics in Turkey - Turkstat for this month, we presented it to you in this article, accompanied by economic analyzes, and a simplified study of the reasons for the increase in the number of real estate sales in March 2021 and expectations for the coming months.

Valuable information 

and readings from the heart of the real estate market in Turkey.

We wish you a good and beneficial follow-up.

 

What was the amount of real estate sales to foreigners in March 2021

Foreigners in Turkey achieved a significant rise in owning real estate within Turkish territory, bringing the number to 4,285 properties during the month of March 2021, an increase of 28.5% compared to the same statistic last year, which amounted to 3,036 properties in the same month last year.

In the same context, still The rise in the number of properties bought by foreigners since the beginning of this year is below the required level, as real estate sales to foreigners in Turkey during the first quarter of 2021 amounted to about 9,992 properties, while the number of properties sold to foreigners in the same period last year amounted to about 11,068 properties, meaning that The difference between the two stats is 10.77%, but the increase that appeared last March heralds the speed of the real estate sector overcoming this difference during the next two months as the latest estimate.

In other words, about the March 2021 statistic, we can talk about:

  • Foreigners buy at least 138 properties per day

  • Foreigners buy between 5 to 6 real estate in Turkey every hour

  • The demand for real estate ownership increased between February 2021 and March 2021 by 22.4%

  • The number of properties sold to foreigners in Turkey during March 2021 represents about 43% of the total real estate sales to foreigners since the beginning of the year, an increase of 10% over the average share imposed for this month.

In the coming paragraphs, we will present a detailed study of real estate statistics for the month of March 2021.

 

The states that are most attractive to foreigners

Although it has become obvious that Istanbul has acquired the largest share of real estate sales to foreigners in every month of the year, what is striking is that this share is growing more and more each time, which suggests that the demand for real estate ownership in Istanbul exclusively significantly exceeds the total demand for housing and investment in more than 80 Turkish states combined. 

As the share of Istanbul in the March 2021 statistic was nearly half, in one of the highest statistical rates that Istanbul had in the field of real estate ownership. 

The following is a table prepared for you by Fanar Realty to see the number of properties sold to foreigners in the 10 states that attract foreign real estate investors and buyers in Turkey, with the percentage of each of these states

States

The number of real estates 

The state's percentage of total real estate sales

İstanbul  

2119

49.5%

Antalya  

889

20.7%

Ankara   

252

5.9%

Mersin

184

7.4%

Yalova

129

3%

Bursa  

70

1.6 %

Samsun  

70

1.6%

İzmir   

58

1.4%

Muğla

66

1.5%

Sakarya

76

1.7%

Other states 

372

5.7%

In a later section, we will study the analytical readings of these percentages, but after we learn about the second aspect of the statistic, which is the nationalities that are most inclined to own real estate in Turkey in March 2021.

The most nationalities owning real estate in Turkey

The statistical report that we are talking about also talked about the 20 most foreign nationalities whose citizens bought real estate in Turkey last March. The Iranians topped the list with a slight difference between them and the Iraqis who ranked second, and we at Fanar Realty have previously talked about the Iraqi and Iranians competition to own property in Turkey.

In the following table, the exact figures of the number of properties that have been transferred to the most famous 20 foreign nationalities with the percentage of each nationality from the total real estate sales to foreigners in Turkey:

Nationality

The number of real estate 

Percentage of total real estate sales 

İran 

663

15.5%

Iraq 

644

15%

Russia

419

9.8%

Afghanistan 

302

7%

Kazakhstan 

166

3.9%

Germany 

142

3.3%

Yemen 

120

2.8%

Palestine

96

2.2%

Azerbaijan 

106

2.5%

China

100

2.3%

Egypt

99

2.3%

Jordan 

91

2.1%

Ukraine  

93

2.2%

America

91

2.1%

Pakistan 

82

1.9%

United Kingdom 

98

2.3%

Lebanon

70

1.6%

Kuwait 

49

1.1%

Sudan  

57

1.3%

Libya 

54

1.2%

Other nationalities 

743

17.6%

After getting to know the numbers, statistics and ratios, it is necessary to stop to read between the lines of this statistic, and what it predicts for the future of real estate in Turkey. 

 

Notes on the March 2021 statistic

As usual in Fanar Realty, we do not stop at the limits of numbers and statistics, but we read with you what this statistic means, and the readings and analyzes it carries, and the following are the most important points that can be deduced from the statistics of real estate sales to foreigners in Turkey in March 2021:

What is the secret of Istanbul?

Istanbul has maintained a very advanced level in the field of attracting foreign buyers, for reasons that may have become self-evident when talking about Istanbul:

  • It is the most vibrant city in Turkey, which competes with major European and international capitals

  • The tourism boom that provided foreigners with the opportunity to learn more about real estate in Istanbul and the advantages of housing in this state

  • The rising investment and commercial activities of foreigners in Istanbul have further consolidated the idea of ​​stability in the families of foreign investors

  • Istanbul's share of urban growth is also very large, and its residential complexes have a distinguished reputation

  • Attractive geographical location, the seas surround the state from all sides, and each residential complex has its share of charming views

  • The large number of foreign residents in Istanbul compared to the rest of the other Turkish states

  • The abundance of Turkish universities and strong infrastructure such as fast transportation, which greatly facilitates life in the city

  • The abundance of job opportunities, good salaries and wide areas of work, which gives foreigners peace of mind about their source of livelihood if they live in Istanbul

All these reasons, when combined, made Istanbul the first state in terms of attracting foreigners to own real estate in Turkey.

Arab ownership of real estate in Turkey

  • The Arabs always represent the difficult number in the real estate ownership sector in Turkey, despite the fact that only Iraq is at the forefront, but among the first 20 foreign nationalities whose children own real estate in Turkey, the Arabs gained 9 seats, in addition to Saudi Arabia, which ranked twenty-first, one property behind Libya ranked 20th.

  • The total number of properties in Turkey that Arabs bought in March 2021 amounted to about 1,350 properties, which is equivalent to 31.5% of all real estate sales in Turkey to foreigners during this month.

  • In a more precise sense, every day in March 2021 there were more than 43 Arabs who bought real estate in Turkey

Has the real estate sector recovered from the effects of Corona?

The real estate sector in Turkey suffered from the effects of Corona to a limited extent only during the fourth, fifth and sixth months of last year 2020, due to the suspension of flights with other countries, which caused a disruption to many real estate ownership plans by foreigners at the time. 

However, with the new Corona wave, no significant impact was recorded on the real estate sector, despite the increase in precautionary measures, closure hours and bans, but the Turkish government was able during the last period to ensure that the real estate sector was neutralized from emergency waves and achieved a growth in real estate sales since late last year.

So, in answer to the question posed at the beginning of the paragraph: 

Yes ... the real estate sector in Turkey has fully recovered from any significant impact of the spread of the Corona virus or its fight against the level of demand for real estate ownership in Turkey, especially by foreigners

The future of real estate ownership in Turkey 2021

In the next three months, real estate sales in Turkey will witness a significant increase compared to the statistics of the same months of 2020, and this is very natural. The two clear challenges to determine the features of the future of real estate ownership in Turkey are:

  • Continuing international flights

  • Summer 2021 tourist season

If Turkey is able to pass the coming months without stopping flights with other countries, and while ensuring the recovery of the tourist season, we can say that the number of properties that will be sold to foreigners in Turkey by the end of this year will exceed the threshold of 50,000 properties, at least.

 

The future of real estate ownership in Turkey is also related to the level of incentives that Turkish real estate laws can provide, as well as the improvement of Turkish-Egyptian relations on the one hand, and Turkish-Saudi relations on the other hand, which will significantly increase the recovery of the real estate sector, and its impact may appear in the last quarter of this year.