To attract more overseas investors, the Turkish government initially lowered the investment immigration thresholds, reducing the required investment amount from $1 million to $250,000. This move resulted in a substantial influx of investment buyers purchasing properties in Turkey and obtaining citizenship.
However, as property prices in Turkey continued to rise, the government started considering raising the investment immigration thresholds to control the number of foreign buyers and ensure the sustainable development of the real estate market.
On June 13, 2022, the investment threshold for obtaining Turkish citizenship through property purchases was once again increased from $250,000 to $400,000. Rumors suggest that by January 1, 2024, the investment citizenship amount may be raised to $600,000 or even higher.
Several factors contribute to the rapid increase in property prices in Turkey. Firstly, property transactions in the Turkish real estate market are primarily priced in US dollars, including land auctions and the purchase of construction materials.
In recent years, factors such as US dollar interest rate hikes, inflation, and the Russia-Ukraine war have led to the depreciation of the Turkish currency, contributing to the rise in property prices.
Secondly, investment immigration programs have attracted a large number of overseas investors who rush to purchase properties in Turkey to obtain Turkish citizenship, further driving up property prices.
High property prices have made it challenging for many ordinary Turkish citizens to afford housing in major cities like Istanbul. To garner more local support, politicians have proposed increasing the investment immigration thresholds to restrict the number of foreign buyers, ensuring quality and gaining more votes and public approval.
However, the Turkish real estate market remains attractive to investors. Despite the increase in investment thresholds, a rise from $1 million to $600,000 is still within a manageable range compared to the past.
Moreover, Turkey remains one of the few countries where citizenship can be directly obtained through investment, making its investment immigration program a focal point globally.
For investors considering purchasing property in Turkey, they need to carefully assess market risks and potential returns. Given the volatility of Turkish property prices and market uncertainty, it is advisable for them to conduct thorough research and due diligence before making investment decisions. They need to cautiously evaluate market risks and conduct comprehensive research and due diligence before making investment decisions.