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INVESTMENT CONSULTANCY
Despite the plummeting property prices worldwide, Turkey’s real estate market continues to be a safe bet for both local and foreign investors.
In 2023 rising interest rates and recession in some of the world’s biggest economies caused prices to plummet worldwide. Meanwhile, Turkey’s real estate market is booming due to high immigration and the inflow of foreign investments.
In March 2023, Residential Property Price Index[1] showed a 5.4% increase from the previous month and a 132.8% nominal increase from the previous year, whereas the inflation-adjusted price increase was 55.4% annually.
In April 2023, 85,652[2] residential properties were sold in Turkey. Around 3% of these transactions involved foreign nationals as buyers.
In April 2023, out of all foreign nationals, Russian nationals bought the most properties in Turkey, with Iranian nationals coming in far second most. Around 1% of all residential transactions involved Russian buyers.
Citizens of 183 countries have been able to purchase residential and commercial real estate just as freely as Turkish nationals since 2012. This free trade of properties accelerated both local and foreign investments in real estate.
One of the major factors behind the real estate boom is the Turkish Citizenship by Investment (CBI) Program that went into effect in September 2018. The CBI program allowed foreign investors to obtain Turkish citizenship by investing a minimum amount of 250,000 USD per family into real estate and agreeing to not sell it for a minimum of 3 years. The program quickly became one of the most popular CPI packages in the world, attracting tens of thousands of investors and their families. In 2022, Turkey raised this limit to 400,000 USD per family. Despite this limit raise, the program is even more popular than ever.
Turkish Passport grants visa-free entry to 114 countries as of 2023. More importantly, Turkish citizenship grants its holder permission to freely reside, work and start businesses in Turkey. It has been observed that many international investors who wanted to legally expand their businesses to Turkey applied for the CBI program as a solution to the issue of residence, work and business permit.
There are several business opportunities in Antalya that international investors may see as the reason to expand their businesses and use the CBI program to smoothen this expansion. Tourism, the benchmark of Antalya’s economy, is steadily improving as the sudden drops caused by Covid-19 between 2020-2021 turned into shark spikes in 2022. Plans are being considered to expand the city’s ports, airports and commercial zones, as both its population and the number of visitors demand more housing and facilities. Construction is proving to be a profitable business model for real estate investors.
In every crisis lie both the risk and the opportunity. Navigating through the hurdles of business in pursuit of investment opportunities can be costly without someone to safeguard your interest. Safeguard Investment offers tailored solutions to high-profile investors in Antalya.
[1]https://www.tcmb.gov.tr/wps/wcm/connect/tr/tcmb+tr/main+menu/istatistikler/reel+sektor+istatistikleri/konut+fiyat+endeksi/
[2] Turkish Statistics Institution https://data.tuik.gov.tr/Bulten/Index?p=Konut-Satis-Istatistikleri-Nisan-2023-49520