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Turkish real estate market: Lifting restrictions to meet challenges
Jun 4, 2024
Turkish real estate market: Lifting restrictions to meet challenges Istanbul
By   Internet
  • City News
  • Turkish Real Estate
  • Foreign investment in Turkey
  • number of property sales
Abstract: Turkey's real estate market is attracting global investors while also facing various challenges and opportunities. The Turkish government needs to strike a balance between maintaining market stability and attracting foreign capital to ensure the sustainable development of the real estate market.

The Turkish real estate market has been a focal point for international investors. According to data from the Turkish Statistical Institute (TurkStat), since the lifting of restrictions on foreigners purchasing properties in 2012, the number of properties purchased by foreign buyers in Turkey has steadily increased. In the past 12 years leading up to April 2024, foreign buyers acquired approximately 388,379 properties, a remarkable figure.


The impact of this policy adjustment extends beyond numbers. With the enactment of the Citizenship by Investment Law, the Turkish government has attracted significant attention from foreign buyers, aiming not only to purchase properties but also to obtain Turkish citizenship. The success of this initiative has accelerated the growth of the local real estate market, injecting new vitality into the Turkish economy.


Russian citizens have become one of the major participants in the Turkish real estate market in recent years. According to data from TurkStat, Russian citizens topped the list in terms of the number of properties purchased in Turkey, reaching 39,876 units. Additionally, citizens from Iran and Iraq have actively participated in the Turkish real estate market, acquiring 35,870 and 31,424 properties, respectively.


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Internet


However, the attractiveness of the Turkish real estate market is not limited to Eastern Europe and the Middle East. Citizens from China have gradually become important participants in the Turkish real estate market in recent years, purchasing a total of 3,842 properties as of April 2024. This indicates that the allure of the Turkish real estate market is gradually expanding, attracting investors from around the world.


In addition to driving the growth of the real estate market, the Turkish government has also balanced market demand and price stability by adjusting the thresholds and restrictions for investment citizenship. In 2012, the Turkish government lifted restrictions on foreigners purchasing properties, initially allowing foreigners to obtain citizenship by investing at least $1 million in Turkish real estate. Subsequently, in 2017, the government lowered this threshold to $250,000 and raised it to $400,000 in 2022. These adjustments are aimed at ensuring the healthy development of the Turkish real estate market and preventing significant fluctuations in housing prices.


However, despite the strong growth momentum of the Turkish real estate market, it also faces some challenges and issues. One of them is the imbalance between housing supply and demand, leading to housing shortages in some areas. Additionally, the increased threshold for investment citizenship and rising housing prices have put pressure on some investors, necessitating the search for new solutions.

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Turkish real estate market: Lifting restrictions to meet challenges
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