Since Turkey lifted restrictions on foreigners purchasing property in 2012, the country's real estate market has captured the attention of many international buyers. According to data from the Turkish Statistical Institute (TurkStat), foreign buyers have purchased over 380,000 properties in Turkey to date. Among them, the citizenship by investment program has been a significant factor in attracting foreign investors, allowing them to obtain Turkish citizenship by purchasing property in the country.

Turkey's citizenship by investment program initially required investors to invest at least $1 million in property, which was later reduced to $250,000, attracting significant attention from foreign investors. However, in recent years, to control the surge in market demand and address issues such as property valuation fraud and contract abuse, authorities have adjusted the citizenship thresholds multiple times. The most recent adjustment was in 2022, raising the minimum investment threshold to $400,000, with rumors of further increases to $600,000.

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These policy adjustments have led to changes in the market. While the Turkish real estate market has attracted many foreign buyers, some investors have begun to wait and see or sell their properties as prices continue to rise. It has been reported that some investors have been able to sell their Turkish properties at significantly higher prices within just a few years, yielding substantial profits, leading to a decline in property transaction volumes.

Data shows that since 2019, the sales of Turkish properties to foreigners have been declining, with a 48.1% decrease in 2023, reaching a historic low. Experts attribute this decline to factors such as inflation, earthquake risks, and stricter citizenship requirements.

However, Turkey's reliance on foreign direct investment in its real estate market remains significant. Since 2002, Turkey's total foreign direct investment has reached $254.2 billion, with as much as 27% coming from property sales to foreigners. Therefore, despite market changes, Turkey may continue to rely on foreign buyers to support the development of its real estate market.