Foreign real estate investments in Turkey predicted to rise

A senior real estate sector representative has said that house sales in Turkey to non-nationals are predicted to see a significant increase in the forthcoming period due to the currency exchange rate and the country’s effective containment of the COVID-19 pandemic.

An expert said that purchases by natives and foreigners had seen a rise during the normalisation process that Turkey was undergoing after the coronavirus epidemic, saying: “Investments from abroad have increased significantly due to exchange rates. We are very hopeful.”

Lifting restrictions improving Turkey’s attractiveness

The loosening of travel restrictions by other countries was also affecting foreign investment in a positive way, as buyers can now travel to Turkey to view and buy Turkish properties. Some companies are even offer online virtual real estate tours for those who cannot or do not want to fly.

The expert added that the management of the coronavirus pandemic by Turkey had improved its attractiveness, especially when it comes to real estate investment, as people regard Turkey as a ‘safe haven’ from the COVID-19 crisis, saying: “Turkey was already a desirable investment destination. The pandemic only consolidated its attractiveness.”

Numbers compared to last year

Compared to last year, there was a 38.1% decline in the total number of units sold to foreigners in the June period. 2020 saw 1,664 units purchased by non-nationals so far. The most popular tourist destinations in Turkey – Istanbul and Antalya, were at the top of the list for sales.

Representatives of the sector have said that they are expecting the data from July and August to show increasing sales of properties to foreign travellers, as the country continues to open up to foreign flyers and travellers.

Mortgage packages offered to buyers

Turkey’s three biggest state-owned banks – Ziraat Bank, Halkbank and VakıfBank – began offering new additions to their products which included mortgages and credit for home appliances at below-inflation interest rates as of June 1.

Mortgages for new homes are being offered by banks with maturity of up to a 15 years, with interest rates as low as 0.64% and an initial grace period of 12 months.

Public lenders last week went on to renew the mortgage packages campaign conditions, upping the interest rates for new homes from 0.64% to 0.87%, and increasing second homes from 0.74% to an interest rate of 0.99%.