Turkey Ranks 14th Among the World's Most Advantageous Real Estate Markets for Foreigners

In a new study listing the 25 most favorable markets for real estate investment, Turkey ranked 14th, ahead of countries such as Spain, Portugal and Greece, thanks to affordable prices, growth forecasts and a stable tourism market.

After the reciprocity law was introduced in 2013, foreign home sales in Turkey surged, contributing to the country's real estate sector, which has become one of the main markets on the Mediterranean coast. These laws and regulations make the country more competitive and in a recent example in a good position in global studies.

Since the introduction of the reciprocity law, Turkey's foreign sales revenue has surpassed the $6 billion mark, breathing new life into the industry. Last year alone, residential sales to expatriates amounted to 45,483 units, with demand diversifying year by year.

The survey conducted by Remote Ventures, an international real estate investment company based in the United States, identified the 25 most advantageous real estate investment markets among the 200 surveyed countries, and Turkey ranked first in terms of characteristics such as growth rate, cost of living, income tax and transaction costs, In addition to the growth of tourism.

Colombia topped the list, while Montenegro, a country that has also attracted attention for its rapid growth prospects in recent years after becoming a full member of the European Union, came second in the list titled "25 best real estate markets for foreigners".

"Türkiye has all the basic qualities"

Matthew Campbell, co-founder and CEO of Remote Ventures, told Anadolu Agency (AA) that they are an investment firm that helps clients easily monitor foreign markets, explore emerging locations, identify and analyze properties and opportunities in detail to convert into investments. As a result, Turkey has emerged as a country that offers great opportunities for international property seekers.

"Turkey stood out because it offered all the basic amenities we were looking for in an attractive market," Campbell said. Explaining the criteria on which the list was based, he added, "Turkey is a huge economy in the region, world-class cities with beautiful coastlines, reasonable visa and residency facilities, rich culture and history, vibrant population "structure" as well as a stable tourism industry and other characteristics, Campbell noted that her index is largely based on specific indicators, including relative gross domestic product (GDP) growth, low cost of living and cheap real estate prices.

Campbell emphasized that the resulting index shows that Turkey's price attractiveness compared to similar countries sends a message to investors that these discounts will not last forever.

According to the Turkish Statistical Institute (TurkStat), the number of homes sold to foreigners rose 11 percent to 11,068 between January and March this year, despite a short-term standstill in the real estate market caused by the coronavirus pandemic.

Study reveals attractiveness of Turkish real estate

Selman Özgün, chairman of Antalya-based Helmann Yapı, also told AA that in countries such as Portugal and Spain, foreigners can buy property for around 400,000 euros ($440,000), while in Istanbul the figure is around 120,000. EUR.

Özgün said the study showed Turkey's attractiveness in terms of real estate investment and profitability, adding that the diversity of investors had also started to increase in recent years.

He went on to say that those who buy housing in Turkey stay in the country for about 90 days, which is also important for other industries as they purchase housing-related materials, further contributing to the economy.

Istanbul, Turkey's most popular tourist destination, and the Mediterranean city of South Antalya topped the list of homes sold to foreigners. Özgün points out that other cities are also starting to emerge as alternative locations with favorable opportunities.

Turks buy property in Montenegro

Meanwhile, Montenegro is one of the countries where Turks buy homes abroad the most.

According to Serkan Şahin, CEO of Mirnadom, a Turkish company that develops real estate projects in Montenegro, the most important characteristics of the country are its growth rate and low real estate prices. The average cost of a house in Montenegro is 50,000 euros, Şahin said, adding that the increase in the number of tourists is the highest in the world. Türkiye followed Montenegro.