Why foreigners are buying Turkish Real Estate

Over the past decade, Turkey has witnessed a remarkable surge in foreign real estate investments, with more than 400,000 units being acquired by non-Turkish buyers between 2013 and 2023.

This trend underscores the growing allure of Turkey's real estate market to international investors, driven by a combination of strategic economic policies, geographical advantages, and robust market potential.

Turkey’s unique position as a bridge between Europe and Asia has long made it an attractive destination for international investors. The country's vibrant cities, stunning coastlines, and rich cultural heritage further enhance its appeal.

Investor-friendly policies by the Turkish government

Turkey's government has implemented a series of investor-friendly policies that have significantly boosted foreign interest in the real estate sector. These include offering Turkish Citizenship to foreign buyers who invest a certain amount in real estate, streamlined property purchasing processes, and various incentives aimed at making investment more accessible and profitable.

The year 2022 marked a particularly noteworthy peak in foreign real estate investment in Turkey. Over 67,000 investors directed their funds into Turkish properties, driven by the country's stable economic growth and favourable investment climate. This influx of investment capital pushed the annual investment in Turkish real estate by foreigners to exceed $7 billion.

The surge was not just in residential properties but also in commercial real estate, indicating a diversified interest from global investors.

Several key factors have contributed to this remarkable investment boom:

- Economic Stability and Growth: Turkey's economic policies and growth trajectory have played a crucial role in attracting foreign investors. The government's focus on infrastructure development, urban renewal projects, and economic reforms has created a conducive environment for real estate investments.

- Citizenship Incentives: One of the most significant drivers has been the Turkish citizenship by investment program. Foreigners who invest a certain amount in Turkish real estate are eligible for citizenship, which provides numerous benefits including easier travel, business opportunities, and living in a strategically located country.

- Strategic Location: Turkey's strategic location as a gateway between Europe and Asia offers significant logistical advantages. This has attracted not only residential investors but also commercial investors looking to capitalise on the country’s connectivity and trade opportunities.

- Affordable Prices: Compared to many European countries, Turkey offers relatively affordable real estate prices, providing higher value for money. This has been a major draw for investors looking for lucrative investment opportunities with potential for high returns.

Market Fluctuations and Future Prospects

While the period from 2013 to 2023 saw a significant increase in foreign investment, the years 2024 and 2025 indicate a slight decline in demand. Several factors could explain this temporary dip, including global economic uncertainties, geopolitical factors, and market saturation. However, experts suggest that this downturn is likely to be short-lived. The global economy's gradual recovery post-pandemic is expected to revitalise investor confidence and demand.

Additionally, the stabilisation of real estate prices in Turkey presents new opportunities for investors. The market correction observed in recent years has made property valuations more realistic and sustainable, which is likely to attract a fresh wave of investment.

Looking Ahead: A Promising Future for Turkish Real Estate

The period following 2025 is anticipated to mirror the robust investment activity witnessed between 2021 and 2023. With ongoing economic reforms, infrastructure projects, and a continued focus on enhancing the investment climate, Turkey remains a promising destination for global real estate investors.

The stabilisation of property prices coupled with the potential for high returns ensures that Turkey will continue to be an attractive option for international investors seeking to diversify their portfolios and capitalise on emerging market opportunities.

In conclusion, the past decade has firmly established Turkey as a key player in the global real estate market. Despite the anticipated short-term fluctuations, the long-term prospects remain bright, driven by strategic economic policies, favourable investment conditions, and the country's unique geographic advantages.

As the global economy recovers and stabilises, Turkey's real estate market is well-positioned to continue attracting significant foreign investment, promising sustained growth and development in the years to come.