In September 2018, the government significantly lowered the investment threshold from $1 million to $250,000, attracting a large influx of investor clients.
As of June 13, 2022, the threshold for obtaining citizenship through property investment in Turkey has increased from $250,000 to $400,000, still making it one of the most cost-effective citizenship programs globally.
However, according to rumors, it is anticipated that starting from January 1, 2024, the investment amount for Turkish citizenship by investment might be raised from $400,000 to $600,000 or even higher.
Considering the past threshold of $1 million, an increase to $600,000 is not entirely out of the realm of possibility.
Political parties in Turkey are gearing up for local elections scheduled for March 2024, with the Republican People's Party having lost to the current President Erdogan and his Justice and Development Party in the 2019 elections.
Currently, the Republican People's Party aims to retain its positions in major cities like Ankara and Istanbul in the municipal elections scheduled for March 2024.
The Turkish real estate market operates in US dollars, with transactions, from land auctions to purchasing building materials, conducted in dollars. In recent years, various factors, including US interest rate hikes, inflation, the Russia-Ukraine war, and a significant influx of overseas investors into Turkey for investment and property purchases to gain higher-level identity recognition, have contributed to the surge in Turkish property prices.
Many local citizens can no longer afford housing in major cities like Istanbul. Hence, politicians propose increasing the investment immigration threshold, limiting the number of overseas property buyers, to ensure investment quality and garner more local voter support.
Earlier, a report by the renowned real estate consulting firm Knight Frank revealed that global property prices increased by an average of 3.6% in the first quarter of 2023, the lowest growth rate since 2015. Turkey led the global real estate market with a price increase of 132.8%, maintaining its leading position in the global property market.
The latest property price index released by the Central Bank of Turkey shows a 3.6% growth in the property price index in May compared to the previous month. The overall property price index increased by 103.6% compared to the same period last year, with new house prices rising by 102.6% and second-hand house prices rising by 103.9%.
Istanbul, as Turkey's largest city, has consistently high property prices, with the property price index rising by 95.2%. New house prices increased by 99.2%, and second-hand house prices rose by 92.3%. Ankara and Izmir also experienced similarly robust upward trends.