Market Trends of Residential Real Estate Industry In Turkey
Increasing FDI Flow in the Residential Real Estate Market in Turkey
The number of house sales to foreigners has accelerated in Turkey due to legislative amendments that eased citizenship with investment limits for foreigners, campaigns launched by real estate developers and banks, and spiking foreign currency that brought an annual record of 78.4% increase in 2021 compared to the previous year.
According to official sources, the country's most populous city, Istanbul, has continued to be the top choice for foreign buyers. Residential property sales to foreigners in the city in September 2021 increased by 25% year-on-year to 2995, compared to 2370 in September 2020. On the other hand, when it comes to nationalities, Iranian citizens continue to top the list of foreign buyers of residential properties. Iraq was followed by Iran with 7622 units, Russians with 4494 units, Afghanistan with 2508 units, and Germans with 2062 units in 2021.
Chinese investment in Turkey has increased dramatically, and it is expected to increase in the coming years. They generally invest in luxury properties and beautifully designed five-star managed apartments, with services and excellent facilities.
Decrease in Sales of New Homes in the Residential Segment in 2021
In Turkey, new home sales refer to the first-time sale of a house that was bought through a landownership agreement made between buyers and firms or persons that build the property. New home sales in Turkey averaged 48,758.25 units from 2013 until 2021, reaching an all-time high of 511682 units in 2019 and a record low of 461523 units in 2021.
The overall residential sales for Turkey suffered a decline of 21.4% in 2021, compared to the same period of 2019. But the rise in mortgaged sales was 25.3% in the same period. Overall sales and mortgaged sales in the country were -16.2% and 26%, respectively, in the same period. The proportion of first-hand sales in overall sales between 2014 and 2021 declined to 12% - 15%.
