Great Increase in Real Estate Purchases by Foreigners in Turkey

The Turkish Statistical Institute released a monthly report on residential property sales; in the first half of 2022, a total of 726,398 sales contracts were signed, corresponding to 726,398 transactions. This represents an increase of 31.4% compared to the same period in 2021.

Between January 2022 and June 2022, foreign investors purchased 35,383 residential properties in Turkey. At the same time, compared with last year's data, it has increased by 72.7%.

Overseas homebuyers accounted for 4.9% of total real estate transactions. But this is still 1.5 times the previous year.

Property prices are rising every year due to increased demand from foreign buyers. Foreigners can obtain Turkish citizenship by investing in Turkish real estate. You must purchase at least USD 400,000 to obtain Turkish citizenship.

Izmir, Istanbul and Ankara are the top three cities in Turkey in terms of residential property sales to domestic and international buyers.

33% of sales contracts were signed in these three cities.

Compared with the same period last year, new home sales and existing home sales in the first half of 2022 will increase by 2

4.2% and 34.6%, respectively.

The demand for residential real estate is increasing every year. Geopolitical climate change around the world led to a surge in sales between March and June. The number of real estate contracts concluded in Turkey between January 2022 and June 2022 is listed below.

The vast majority of residential real estate in Turkey was bought by Russians, with a total of 6,877 sales contracts. Iran and Iraq came in second and third, respectively.

The top five countries to buy property in Turkey in 2022 are as follows:

• Russia - 6877
• Iran - 5315
• Iraq - 4445
• Kazakhstan - 1607
• Germany - 1577

Expectations for the Turkish Real Estate Market in 2022

The cost of buying a property in Turkey is increasing every year. According to Eurostat, this statement is true: the rate of change in property prices in Turkey is higher than in the EU.

Annually, housing costs in Turkey increased by 110% in the first quarter of 2022, ranking first in Eurostat's house price index. Additionally, residential property costs in Turkey have increased by 641.35% over the past 12 years. To put this in perspective, the typical housing cost increase across the EU is 44.7%.

Real estate prices rose by 12.4% in May 2022 compared to April and 41.1% annually, according to estimates from the Central Bank of Turkey. The list of property prices with the largest increases in the past year is as follows:

• Istanbul: 165.4%
• Ankara: 147.5%
• Izmir: 139.9%

Increased home buying demand has also affected the home buying market. A total of 216,582 properties were sold in the first five months of the year. Compared with the previous year, land prices increased by 83%.

A step-by-step guide on how to obtain Turkish citizenship by real estate investment

Turkish citizenship can be obtained by participating in government programs for investors. The decision to invest in real estate is by far the most common, accounting for approximately 95% of all investments. The minimum amount required to invest is $400,000.

Foreigners can buy any type of real estate in Turkey, including existing buildings, new construction, residential or commercial properties, property interests under construction, and land.

For residents of certain countries, there are certain restrictions on buying real estate in Turkey. For example, non-natives are not allowed to own more than 30 hectares (ie 300,000 square meters) of land.

The Turkish citizenship program is one of the most popular citizenship programs for global investors.

Obtaining second citizenship requires investing more than $400,000 in a country's economy. You can choose to buy real estate, mutual fund shares, bonds, participate in equity in a Turkish company or open a savings account with a Turkish financial institution.

Buying a property has always been the most popular option. In Turkey, the annual growth rate of real estate prices is between 15% and 25%. As a direct result, the number of properties sold to investors increased by 43.5% in 2021.

Apart from the investor, other family members of the investor such as spouse and children (should be under the age of 18) are also eligible for Turkish citizenship.

Benefits of Becoming a Turkish Citizen

Travel to Schengen Area Countries

Turkish citizens can apply for a C-2 Schengen visa, which is valid for five years. Citizens with an appropriate visa can stay in any Schengen country for a maximum of 90 days out of 180.

Opportunity to travel visa-free to over 110 countries

With a Turkish passport, you can travel visa-free to over 110 countries. Also, traveling to Japan, Singapore and South Korea is much easier than other countries.

Safe "haven"

Even with the Turkish border closed, businessmen can travel there at any time. This is extremely important in times of crisis, whether political, pandemic, or a threat to the safety of family members.

Acquiring dual citizenship means unlimited opportunities to live, work, study, start and run a business in Turkey.

U.S. business visa, designated E-2.

Turkish nationals can obtain an E-2 visa, paving the way for investors and their families to live and work in the United States. To obtain the visa, the investor establishes or acquires a business in the United States. While there is no set minimum investment amount, most candidates invest at least $100,000 in a company.

Visa to visit the US

Turkish citizens wishing to invest in the United States can apply for a B-1/V-2 visa. They can apply, and if their application is accepted by the interview process, they can visit any U.S. consulate in Turkey. (in Istanbul or Ankara).

Likelihood of return on investment

By selling the investment property, the investor has the opportunity to get back the initial capital after three years of Turkish citizenship. There are no selling restrictions.

Who Can Get Turkish Citizenship?

Investor

• Individuals over the age of 18
• Have neither a criminal record nor any pending charges
• no serious illness
• Ability to verify that income is legally earned

Spouse and Children

• Under 18

Property Investment Opportunities in Turkey: Examples

Additional investment opportunities are available through the Turkish Citizenship Program. Investors can obtain a Turkish passport in the following ways:
You can start a business or hire 50 workers with $500,000 in capital, deposit in a bank to buy government bonds, buy shares in a mutual fund, or start a business with savings.

Obtaining Turkish citizenship gives investors the opportunity to enter the country at any time, travel visa-free to more than 110 countries around the world, and obtain an E-2 business visa, which will allow them to permanently immigrate to the United States of America.

Turkish citizens enjoy free medical care in public hospitals, free admission to public kindergartens and free tuition in public schools.

Within the Turkish government, Property Superiors is a licensed institution. If you are interested in obtaining Turkish citizenship, please contact Property Superiors investment program specialists as soon as possible.