According to the data announced by the Turkish Statistical Institute (TUIK), house sales increased by 107.5 percent in May compared to May last year.
Russians were the foreign buyers group that made the most purchases in 122 thousand 768 house sales in May. Russians are at the top of the list of foreigners who have bought a house in Turkey for the last two months.
TURKSTAT said that house sales to foreigners rose to 5,962 with an annual increase of 235.7 percent. Foreigners are trying to take advantage of a government scheme that gives Turkish citizenship to homebuyers.
Sales to foreigners soared before a law went into effect this week that raised the minimum purchase value from $250,000 to $400,000 in a citizenship by property plan, according to industry officials.
Gül Gül, the founder of real estate sales company Golden Sign, said that after the new border was announced last month, the demand for foreigners in the real estate market has increased.
“Foreigners bought too much to avoid being affected by the price increase,” said Gul.
Russian citizens were at the top of the list by purchasing 1,152 houses in April and 1,275 houses in May. Iranians and Iraqis followed the Russians on the list.
According to the data, Russians and Ukrainians make up more than 25 percent of foreign sales.
Many real estate companies say wealthy Russians are pouring money into real estate in Turkey and the United Arab Emirates after Moscow’s invasion of Ukraine and Western sanctions.
TSKB Real Estate Appraisal General Manager Makbule Yonel Maya said that besides the upper limit in the citizenship plan, sales to foreigners increased due to the intense demand from Russians after the conflict in Ukraine.
Sales to foreigners help support the lira, which is under sales pressure, by earning foreign currency to the Turkish economy.
Industry officials estimate that 10 billion dollars entered the economy in 2021 thanks to the sales of 58 thousand 576 residences to foreigners.
The data also showed that mortgage sales in May increased by 177.8 percent year-on-year to 29,335, accounting for 23.9 percent of total sales during the period.