The Institute of Statistics in Turkey publishes monthly reports on the sale of residential real estate; during the first half of 2022, a total of 726,398 sales contracts were finalized, making the total number of transactions 726,398. This shows a 31.4% increase compared to the same period in 2021.
Between January and June of 2022, foreign investors purchased 35,383 residential properties in Turkey. This shows a 72.7% increase according to the data of the previous year at the same time.
4.9% of the total amount of real estate transactions has been made by buyers from outside of the country. Yet, it is still 1.5 times more than it was last year.
The price of real estate is increasing on a yearly basis as a result of the increased demand from non-native buyers. Foreigners can get Turkish citizenship in exchange for investments in Turkish real estate. You need to make purchases totaling at least $400,000 to get Turkish citizenship.
Izmir, Istanbul, and Ankara are the top three cities in Turkey in terms of residential real estate sales among both domestic and international buyers.
33% percent of the sales contracts have been made in these three cities.
When compared to the same period of the previous year, the first half of 2022 showed an increase in sales of both new and existing homes of 24.2% and 34.6%.
The demand for residential properties increases every year. Geopolitical climate changes throughout the world have become a contributing factor in the meteoric rise in sales that occurred between March and June. The number of real estate contracts that were finalized in Turkey during the period beginning in January 2022 and continuing through June 2022 is listed down below.
The vast majority of residential properties in Turkey were purchased by Russians, with a number of 6,877 sales contracts. Iran and Iraq came in second and third place.
The top five nations that purchased real estate in Turkey in 2022 are as follows:
- Russia - 6877
- Iran - 5315
- Iraq - 4445
- Kazakhstan - 1607
- Germany - 1577
Expectations for Turkey's Real Estate Market in 2022
The cost of purchasing a home in Turkey continues to go up every year. According to the information provided by Eurostat, this assertion is true: the rate of change in property prices in Turkey is higher than the change rate in the European Union.
Every year, the cost of residential properties in Turkey increased by 110% in the first quarter of 2022, placing it in first place on the Eurostat home price index. Additionally, the cost of residential properties in Turkey increased by 641.35% according to the previous 12 years. To put this into perspective, the rise in the typical cost of housing within the European Union is 44.7%.
The prices of real estate increased by 12.4% in May 2022 compared to April, and 41.1% yearly, according to estimates provided by the Central Bank of Turkey. The greatest increases in home prices during the past year are listed down below:
- Istanbul: 165.4%
- Ankara: 147.5%
- Izmir: 139.9%
The increase in demand for real estate acquisition has also affected the market for land buying. During the first five months of the year, 216,582 properties were sold. Over the previous year, there was a rise of 83% in the price of plots.
Read our article named State of the Real Estate Market in 2022 in Turkey for further information about the real estate sector in Turkey and the latest data.
Step-by-Step Guide to Acquiring Turkish Citizenship Through Property Investment
Turkish citizenship can be obtained by participation in a government scheme by investors. The choice to invest in real estate is by far the most common one, accounting for around 95% of all investments. The minimum amount required for investment is $400,000.
Foreigners are permitted to purchase any type of real estate in Turkey, including pre-existing structures, newly constructed ones, residential or commercial properties, shares in properties that are still in the process of being built, and land.
For inhabitants of certain countries, the acquisition of real estate in Turkey is subject to certain limitations and restrictions. For instance, non-locals are not allowed to own land parcels bigger than 30 hectares, which is equal to 300,000 m2.
The Citizenship by Investment Program in Turkey is one of the most preferred citizenship programs by investors all around the world.
An investment of more than $400,000 in a country's economy is required to gain second citizenship. You have the choice of purchasing real estate, units of an investment fund, bonds, participating in the share capital of a Turkish firm, or creating a savings account with a Turkish financial institution.
The acquisition of a piece of property is consistently the most popular choice. In Turkey, annual increases in real estate prices range from 15 to 25 percent. As a direct consequence of this, the number of real estate sold to investors increased by 43.5% in 2021.
Along with the investor, other members of the investor's family, such as a spouse and children (who should be younger than 18 years old), are eligible for Turkish citizenship.
Advantages of Being a Turkish Citizen
- Travel to countries within the Schengen region
Citizens of Turkey can apply for a Schengen visa of type C-2, which is valid for five years. Citizens are permitted to stay in any Schengen country for up to 90 days out of every 180 days with the proper visa.
- Chance to enter more than 110 countries without a visa chance
With a Turkish passport, one can travel to more than 110 countries without a visa. In addition to that traveling to Japan, Singapore, and South Korea, is much easier than the other nations.
- "Safe haven"
Even if Turkey's borders are blocked, businesspeople are free to travel there at any moment. It is extremely important in the event of a crisis, whether it be a political crisis, an epidemic, or a threat to the safety of members of the family.
The acquisition of dual citizenship grants the unrestricted ability to live, work and study in Turkey, as well as to establish and manage a business there.
- A visa for American businesses designated as E-2.
An E-2 visa is available to nationals of Turkey, which paves the way for investors and their families to live and work in the United States. To obtain a visa, the investor creates or acquires a firm in the United States. Although there is no set minimum investment amount, most candidates put at least 100.000 dollars into a business venture.
- A visa for visitors to the United States
Turkey citizens who want to invest in the United States may apply for a B-1/V-2 visa. They can submit an application, and if their application is accepted for the interview process, they can attend one of the US consulates in Turkey. (In Istanbul or Ankara).
- The possibility of a return on the investment
Through the sale of investment real estate, an investor has the opportunity to recoup their initial capital three years after becoming a citizen of Turkey. There are no restrictions about the selling.
Who Can Get Turkish Citizenship?
- People who are older than 18 years
- Neither has a criminal record nor any pending charges
- No serious diseases
- In a position to verify that the revenue was earned legitimately
Spouse & Children
- Under 18 years old
Real Estate Investment Opportunities in Turkey: Examples
Additional investment opportunities are available through the Turkish citizenship program. An investor has the following options to get a Turkish passport:
You can build a firm with a capital of $500,000 or hire 50 workers, make a deposit in a bank to purchase government bonds, acquire shares of investment funds, or open a business with a deposit.
If an investor obtains Turkish citizenship, he or she will have the ability to enter the nation at any time, travel visa-free to more than 110 countries around the world, and receive an E-2 business visa, which would allow them to relocate permanently to the United States of America.
The provision of free medical treatment in public hospitals, free attendance in public kindergartens, and free education in public schools are all available to citizens of Turkey.
Within the Turkish government, Bari Global operates as a licensed agency. If you are interested in obtaining Turkish citizenship, you should seek the guidance of investment program professionals of Bari Global as soon as possible.