2017 set to be record year for Turkish home sales

The number of residential property sales in Turkey rose in September, putting the country on track to beat 2016’s 1.3 million property sales record.

TurkStat has reported that more than 140,000 homes were sold in Spetember, a year-on-year increase of 28.8. The figure is 16.7 percent higher over the preceding month.

Foreign buyers return to the market

The number of residential properties sold to foreigners rose by 75 percent year-on-year in September.

Last year, 18,189 properties were sold to foreign buyers. The first nine months of 2017 have seen foreign property sales reach 15,241 already. This includes a year-on-year 147 percent increase in the number of Istanbul property sales.

Of the total September sales, 2,236 properties were sold to foreigners, and around a third of those in Istanbul. After Istanbul, the resort city of Antalya was in second place, with overseas buyers accounting for 520 sales.

Iraqis topped the list of September buyers, snapping up 383 properties. Saudi Arabians followed with 344 properties, Kuwaitis 160, Russians 129 and British 103. The figures follow the recent trend which has seen Middle Eastern buyers investing heavily in Turkey.

2017 shaping up to be best ever year

The figures could well mean Turkey is on track for a new property sales record. In 2016, Turkish house sales hit an all-time high, with total sales reaching 1.3 million. In the first nine months of this year, the number of residential properties sold reached almost one million units. With October being a traditionally high-volume month for property sales in Turkey, experts predict this year’s sales could reach 1.5 million.

Sales were boosted by the government’s hefty VAT discount, and the offer of citizenship for property purchases over $1m, as well as automatic Turkish residence for any first home buyers.

Property Turkey director Cameron Deggin says the numbers are something to be celebrated. “The jump in sales points to increased confidence about Turkish real estate, definitely. By exempting VAT and making it easier to obtain Turkey citizenship or residency, the Turkish government has worked to ensure buying property in Turkey is easy, and has done everything possible to facilitate investor success.”

EU buyer interest set to rise

Turkey’s long relationship with the EU has meant European citizens naturally target the country for investment and second home properties. So far, 140,832 foreigners have bought property in Turkey - and a third of these purchases were made after 2012, when the government relaxed buying laws.

EU citizens make up 44 percent of this figure. UK investors have led the way, buying 24,456 investors, followed by almost ten thousand German investors, then 4500 Dutch investors. The last three years have seen a drop in demand from these groups, but ructions within the EU such as Brexit are tipped to see EU buyers once again rise to the fore.