New peak in foreign real estate purchases by Turks

Turks' real estate purchases abroad reached 597 million dollars in the first three months of 2024, an increase of 62 percent compared to the same period last year. The last year's figure was 2 billion 315 million dollars.
While real estate purchases by foreigners in Turkey are decreasing, Turkish purchases abroad are increasing rapidly.
While the price increase in real estate in Turkey remains below inflation, the rich are heading abroad, causing foreign exchange outflow from the country.
According to the Central Bank (CBRT) data, foreign real estate investments of domestic residents broke a monthly record with 298 million dollars in March 2024.
For the first three months, before the pandemic, foreign real estate investments were 74 million dollars in 2019, 99 million dollars in 2020, 126 million dollars in 2021, 97 million dollars in 2022, 368 million dollars in 2023, 2024. It rose by 62 percent to 597 million dollars.

EXCEEDED 2.3 BILLION DOLLARS IN ONE YEAR
Foreign real estate purchases of Turks reached 2 billion 315 million dollars in the last 12 months between April 2023 and March 2024.
Foreign real estate investments broke a record with 2 billion 86 million dollars in 2023, an increase of 163.7 percent compared to the previous year.
Turks' foreign real estate investment was 282 million dollars in 2020, 526 million dollars in 2021, and 791 million dollars in 2022.
The distribution of Turks' foreign real estate investments by country is not included in the CBRT data, but it is possible to reach the country breakdown of Turks' general foreign direct investments.
While real estate investment was increasing, the direct investment of Turks in Greece, which was 21 million dollars in 2021 and 52 million dollars in 2022, quadrupled, increasing to 203 million dollars in 2023.
It was noteworthy that in Portugal, which, like Greece, stands out in golden visa applications of Turks through real estate purchases, the direct investment figure in question increased from 13 million dollars in 2022 to 159 million dollars in 2023.
In Turkish direct investments, from 2022 to 2023, Italy increased from 26 million dollars to 112 million dollars, Spain from 39 million dollars to 89 million dollars, England from 211 million dollars to 513 million dollars.

HOUSING SALES TO FOREIGNERS DECREASED
According to TUIK data, housing sales to foreigners decreased by 48.1 percent in 2023 compared to the previous year, reaching 35 thousand 5. This figure was recorded as the lowest in the six years after 2017.
The share of housing sales to foreigners in total housing sales, which was 4.5 percent in 2022, decreased to 2.9 percent in 2023.
Net foreign inflow into the real estate item, which broke a record with 6 billion 273 million dollars in 2022, decreased by 43.3 percent to 3 billion 560 million dollars in 2023.
Housing sales to foreigners decreased by 48.0 percent in the January-March period of 2024 compared to the same period of the previous year, reaching 5 thousand 685.
Net real estate investment of foreigners in Turkey also decreased to million dollars in the first quarter of 2024, with a decrease of 41.9 percent compared to the same period last year.
The price required for real estate purchases for citizenship was reduced from 1 million dollars to 250 thousand dollars as of September 2018, and was increased to 400 thousand dollars on June 13, 2022, following the reactions.
As of October 16, 2023, the lower limit for real estate purchases by foreigners in order to obtain a residence permit was increased from 75 thousand dollars to 200 thousand dollars.
Experts point out that there is a decrease in housing purchases by foreigners in Turkey due to reasons such as the high prices in dollar terms, the risk of earthquakes, and the increase in the limits required for citizenship and residence permits.

Kaynak:https://www.sozcu.com.tr/turklerin-yurt-disi-gayrimenkul-alimlarinda-yeni-zirve-p47300