Foreign Investors Want to Hold Their Properties in Turkey!
Real Estate International Promotion Association (GİGDER) has published the results of the field survey named "Competition and Inspiration: Rethinking the future of real estate investments in Turkey" which aims to learn the motivations and expectations of foreign property buyers and investors in Turkey. The research, which has 410 participants from 48 different countries, has emerged as the most comprehensive work done in this field while holding the pulse of investors who bought real estate in Turkey.
The research shows that 92,7% of the participants prefer to keep holding onto their properties. The other notable results are that the average property ownership duration is 5,7 years, and only 1 out of 4 foreign citizens, who invest in Turkey, aims to acquire Turkish citizenship. It means that foreign buyers invest in real estate by having confidence in Turkey. Also, Turkish citizenship is not the only factor that determines their investment decision. The average value of all types of properties purchased by participants is 161.500 USD, and the average value of flat/apartment type is 150.750 USD.
GİGDER President: “Foreigners rely on the Turkish real estate market”
The fieldwork of the research was carried out by AGB Global market research company with the participation of 410 international investors from 48 countries in 8 languages. Evaluating the results, GİGDER President Ömer Faruk Akbal said: “Foreign buyers spend an average of 2,8 months/years in Turkey, and the average number of properties purchased is 1,66. In other words, despite all the adverse developments in the global market, foreigners rely on the Turkish real estate market.”
“Apart from the monthly and annual data of property sales made to foreigners by TUIK and the experience of professionals in the sector, the absence of a field survey motivates GIGDER into carrying out research that analyzes the tendencies, preferences, and decision-making mechanisms of foreign investors in Turkey on a scientific basis. We have analyzed every aspect of the market in detail and made important strategies based on comparative analysis. As GİGDER, we will continue to share with the public the future parts of this research, which we reached very striking results in line with our goal of drawing the road map for the next ten years in the international real estate market.”
Bayram Tekce, Chairman of Tekçe Overseas and Vice President of GİGDER, stated that this research, which they conducted to provide reliable data to the sector, attracted attention as the first and most comprehensive research of the sector. Bayram Tekce expressed as follows: "Turkey is one of the 5 most important tourism destinations in the world. With people living the atmosphere of our country during their touristic visit here, Turkey is becoming a destination country also for real estate purchases. With this study, we took a valuable contribution of our customers to strengthen Turkey's brand image. We thank our thousands of customers who trusted us for their contribution to this work.”
1 Out of 10 Investors is a Turkish Citizen Now!
The most important results obtained from the research can be summarized as follows:
• The share of foreign real estate investments in the worldwide market is around 2,6-3%, which is worth approximately 400 billion dollars in value. In Turkey, the share of international investments within the real estate market is 10,6% which is worth 6.85 billion dollars. In 2015, the rate of property sales made to foreigners was 1,7% in quantity. By the end of 2020, this rate reached 2,7%.
• In recent years, one of the main reasons for the increase in real estate sales in Turkey was the Turkish Government's incentives related to the acquisition of citizenship. On the other hand, the research shows that only 1 out of 4 foreign citizens, who invest in Turkey, aims to acquire citizenship. So, we can say that Turkish citizenship is not the only factor that determines their investment decision.
• According to the results, 75,4% of the participants stated that they did not apply for or obtain citizenship during their buying process while the rest indicated that they are about to apply for citizenship in Turkey. 1 out of every 10 participants said that they completed their citizenship process after investing.
• In the first purchases, the most preferred property type was flats/apartments (90,4%). The following ones are houses/villas, commercial properties, buildings, student dormitory, and land for sale in Turkey. The average amount paid for all types of properties was recorded as 161.500 USD. Flats/apartments have an average value of 150.750 USD.
• 57.2% of the purchased properties are new developments, 31.8% are under construction, and 11% are resale properties.
• When analyzed as a percentage of their purposes of buying a property in Turkey by allowing the participants to submit multiple options, we see investment purposes on top with 45.40% of the answers, then 30.50% with a short-term holiday, 27.80% with permanent life, 27.60% with the acquisition of Turkish citizenship, 23.70% with retirement, 13.90% with the residence permit and 9.5% with education.
• When country-based investment purposes are examined, the rates of the countries' motivations to buy a property in Turkey as follows;
• Jordan - %89,5 of investment purposes, %84.2 of Turkish citizenship.
• Russia - 76.5% of short-term vacation, 35.3% of retirement, 23.5% of health.
• The United Kingdom - 50% of permanent life and 25% of education.
• Iran - 46.2% of a residence permit and 23.1% of business/commercial reasons.
• Germany 64% short-term vacation.
To read the full version of the report please contact us.