Turkey ranks 14th among world's most advantageous real estate markets for foreigners
In new research that listed the 25 most advantageous real estate investment markets, Turkey secured 14th place, outpacing countries like Spain, Portugal and Greece thanks to its affordable prices, growth projections and stable tourism market.
Foreign residential sales in Turkey significantly increased following the reciprocity law launched in 2013, contributing to the country’s real estate sector, which came to the fore as one of the leading markets along the Mediterranean coastline. These laws and regulations have made the country more competitive and also put it in a good position in global research, as in the latest example.
Foreign sales-born income has surpassed $6 billion in Turkey since the implementation of the reciprocity law, breathing new life into the sector. The sale of residential properties to foreigners reached 45,483 units last year alone, with demand increasingly diversifying each year.
The survey, conducted by the U.S.-based international real estate investment company Remote Ventures, revealed the 25 most advantageous real estate investment markets among 200 countries it reviewed, and Turkey placed high with features like growth rate, cost of living, income taxes and transaction costs, in addition to tourism sector growth.
Colombia placed first, and Montenegro, a country that has also drawn attention in recent years with its rapid growth projections after achieving full membership to the European Union, finished second on the list titled "Top 25 Real Estate Markets for Foreigners.”
"Turkey meets all basic qualities”
Remote Ventures co-founder and CEO Matthew Campbell told Anadolu Agency (AA) that they are an investment company that helps customers to easily monitor foreign markets, explore emerging locations, recognize and analyze properties in detail and turn opportunities into investments. Accordingly, he said, Turkey emerged as a country that offers tremendous opportunities to international real estate seekers.
"Turkey stands out because it has all the basic amenities we are looking for in an attractive market,” Campbell said. Explaining the criteria that the list was based upon, he added that “Turkey, a huge economy in the region, has world-class cities with beautiful coastlines, proper visa and residency opportunities, rich culture and history, dynamic demographics” along with stable tourism and other features. Campbell noted that their index was mainly based on specific measures, including gross domestic product (GDP) growth, relatively low cost of living and cheap property prices.
Campbell stressed that the prepared index shows that Turkey's attractiveness in price compared to similar countries gives investors a message that those discounts will not always stay like this.
According to the Turkish Statistical Institute (TurkStat) data, the number of houses sold to foreigners jumped 11% and reached 11,068 in the January-March period of this year despite a short-term stagnation in the housing market due to the coronavirus pandemic.
Study reveals attractiveness of real estate in Turkey
Selman Özgün, chairman of Antalya-based Helmann Yapı, also told AA that a foreigner can buy real estate for about 400,000 euros ($440,000) in countries such as Portugal and Spain, while this figure is around 120,000 euros in Istanbul.
Özgün said that the study reveals the attractiveness of Turkey in terms of real estate investment and profitability, adding that in recent years the investors’ diversity is also beginning to increase.
He went on to say that those who buy a housing unit in Turkey stay in the country for about 90 days, which is important for other sectors as well, as they buy house-related materials that further contribute to the economy.
Turkey's most popular tourist destinations, Istanbul and southern Antalya, a coastal city on the Mediterranean, top the list for home sales to foreigners. Özgün noted that other cities have also started to become alternative spots with advantageous opportunities.
Turks buying homes in Montenegro
Meanwhile, Montenegro is among the countries where Turks have bought the highest number of houses abroad.
Serkan Şahin, the CEO of the Turkish company Mirnadom, which carries out real estate projects in Montenegro, said that the country's most important feature is its growth rate and low housing prices. A housing unit in Montenegro averages 50,000 euros, Şahin said, adding that it saw the highest increase in the number of tourists in the world. Turkey followed Montenegro on the list.