Because of coronavirus, international travel restrictions and quarantine applications that had been experienced due to an obstacle in front of naturally also being able to buy housing in Turkey by foreign investors. However, with the introduction of its new normal process recently, the interest of foreign investors in housing investment signals a return to what it was before the pandemic. The intensity of housing sales to foreign investors started to give positive signals when compared before the Covid-19 epidemic has begun to be seen again for the last 5 months.
Housing sales to foreigners, which started to decline in March when the Covid-19 virus was seen for the first time in the country and saw the lowest level in recent years, started to rise again with May, when the new normal process entered. Housing sales to foreign investors reached 5,269 units in September 2020, making history as the highest value of the current year and all time. Housing sales to foreigners in September increased by 26.1% compared to the same month of the previous year and 35.3% compared to the previous month.
Based on the first three quarters of 2020, a total of 26 thousand 165 houses were sold to foreigners, while this number was 31 thousand 925 in the same period of last year. Although these figures represent an 18% decrease compared to the same period of 2019, it is predicted that the acceleration of the increase will continue in the last quarter of the year and that more than 40 thousand houses will be sold to foreigners in 2020 despite the pandemic.
İstanbul Takes the Lead
Istanbul was the most preferred city in Turkey last month, 2 thousand 370 units sales in the history of the highest September housing sales seen in Istanbul, the first 9 months a total of 11 thousand 966 sales to foreigners of housing was held this year. Later, Antalya became the second most preferred city for foreigners with 1,18 houses sold. Antalya was followed by Ankara with 347 houses, 239 Bursa and Yalova with 168 houses. On the other hand, foreign investors invested 5 thousand 125 houses in Antalya, 1829 from Ankara, 882 from Bursa and 821 from Yalova in the 9-month period.
In September, the most house sales were made to Iranian citizens with 908 units. Iraqis followed Iranians with 826 houses and the Russians with 448 houses. Thus, Iranians continued the leadership in 2020 with 4,716 houses.
Expectations are so Positive for Near Future
The 26% increase on housing sales to foreigners in September makes a positive expectation about near future. Foreign investor demand is increasing day by day more for the purchase of housing in Turkey. With the reduction of the effects of the coronavirus pandemic, foreigners’ interest in housing investment seems to increase even more. Turkey’s stability and strong health system provides confidence to foreign investors from all over the world.
On the other hand, although the increase in the exchange rate negatively affects the domestic market, this situation provides an advantage for foreign investors’ interest in housing. For this reason, sales to foreign investors are expected to increase more in the coming months. In addition, the effect of the incentive for citizenship rights to foreigners in return for housing investment continues to increase demand.
An increase is expected in housing sales figures for foreigners
During the quarantine process of Covid-19 that waiting period in the field of foreign investors in investment decisions, the successful fight against the epidemic process also revealed that Turkey’s entry into the real estate industry is counting the days to do it again under the influence. It is known that the pending demand will rapidly turn into housing sales.
The recent interest of foreign investors to the existing residential projects in Turkey seems to gradually gain weight. With the effect of the increase in foreign exchange rates, foreign investors find the conditions they have been looking for in the Turkish real estate sector for years. In addition, potential investors living abroad in many countries through representative offices opened recently, is going to have to come to Turkey without having to buy or sell housing easiness.