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Housing prices climb with record sales to foreigners

Along with the increase in housing prices and rents around the world and in Turkey, the reasons for this increase are also discussed.The fact that the house is seen as an investment tool rather than a shelter, the supply-demand imbalance, low interest campaigns and the increase in construction costs, together with the sales made by the countries to attract funds from abroad, come to the fore in the discussions as the reasons for the increase.In Turkey, the increase in house sales to foreigners draws attention after the government's regulation that envisages granting citizenship to those who buy real estate worth 250 thousand dollars or more.

Out of every 100 houses sold in August, 11 in Istanbul and 18 in Antalya went to foreigners. Housing sales to foreigners exceeded 30 thousand in 8 months, breaking a record. The increasing foreign demand with the citizenship regulation for 250 thousand dollars increased the price especially in the first hand.

Along with the increase in housing prices and rents around the world and in Turkey, the reasons for this increase are also discussed.

The fact that the house is seen as an investment tool rather than a shelter, the supply-demand imbalance, low interest campaigns and the increase in construction costs, together with the sales made by the countries to attract funds from abroad, come to the fore in the discussions as the reasons for the increase.

In Turkey, the increase in house sales to foreigners draws attention after the government's regulation that envisages granting citizenship to those who buy real estate worth 250 thousand dollars or more.



Record reached in August

According to the data released by the Turkish Statistical Institute (TUIK), 5,866 houses were sold to foreigners in August 2021. This figure was the highest sales figure after the record 6 thousand 276 units in October 2018.


Sales to foreigners increase prices

The share of foreigners in house sales in Turkey is around 3.5 percent on the basis of units, but it is around 7-8 percent when considered in terms of turnover, and that the share of foreigners in the sales of primary hand houses in Istanbul is 15 percent, and the sales to foreigners in this market increase in price.

The average value in sales to foreigners is about twice that of locals, the citizenship arrangement in return for the purchase of real estate of 250 thousand dollars also increased the foreign demand.

Although the housing market slowed down compared to the previous year, it has become active especially since June, adding that there are 6-7 thousand sales per working day, which is a strong performance.

Their share is 3.5 percent, but their turnover share is about twice that. We see that they are effective in the first-hand market. Their share in Istanbul in first-hand housing is close to 15 percent. Mostly projects are sold. That side affects prices.

According to the report prepared by BETAM, the price of houses for sale throughout Turkey in August increased by 38.9 compared to the same month of the previous year, while the prices of rental houses increased by 34.6 compared to the same month of the previous year. The annual price increase of rental apartments in Istanbul was 50.7%.

Antalya and Muğla are one of the provinces with the fastest increase in housing prices.

Housing sales to foreigners increased by 50.7 percent in August compared to the same month of the previous year.

In the property sales to foreigners, Istanbul took the first place with the sales of 2 thousand 729 houses. Antalya was followed by Antalya with 976 house sales, Ankara with 400 house sales, Mersin with 242 house sales and Yalova with 233 house sales.

According to the nationality of the country, the most house sales were made to Iranian citizens. In August, Iranian citizens bought 911 houses from Turkey. Citizens of Iran were followed by Iraq with 900 residences, Russian Federation with 451 residences, Afghanistan with 313 residences and Kuwait with 264 residences.


Foreign sales exceeded 30 thousand in 8 months

Housing sales to foreigners increased by 47.6 percent in the January-August period compared to the same period of the previous year and became 30 thousand 849.

In terms of the first eight months, 2021 was at the top of all time with 30,849 sales. In the first eight months, 20 thousand 896 houses were sold in 2020, 27 thousand 479 in 2019, and 18 thousand 540 houses in 2018.


11 of every 100 residences in Istanbul are owned by foreigners

While 24,286 residences were sold in Istanbul in August, 11,2 percent of them were sold to foreigners, with 2,729 units.

In the January-August period, 151,221 houses were sold in Istanbul, and 9.8 percent of this, with 14,788 units, was sold to foreigners.


18 of every 100 residences in antalya are owned by foreigners

The share of foreigners in house sales in Turkey in the first eight months was 3.8 percent.

The share of foreigners in the total of 5,487 houses sold in Antalya in August reached 17.8 percent.

While a total of 34,827 houses were sold in Antalya in the January-August period, 16.9 percent of this was sold to foreigners with 5897 units.


Citizenship by Investment property sales exceed 130 thousand mark

In the three and a half years following the government's regulation of granting citizenship to those who buy real estate worth 250 thousand dollars or more, foreigners bought a total of 134,100 residences in Turkey.

The top four are citizens of Iraq, Iran, Russia and Afghanistan.



( Source : Sözcü Gazetesi )

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