Analysis of the Drop in Foreign Property Sales in Turkiye in May 2024 and Prospects Ahead
Turkiye has long been an attractive destination for foreign investors, thanks to its natural beauty, cultural richness, and strategic location. However, recent data from the Turkish Statistical Institute (TÜİK) reveals a significant decline in property sales to foreigners in May 2024. Sales dropped by 34.8% compared to the same month last year, totaling 2,064 transactions.
General Overview of Foreign Property Sales in May 2024
According to the Turkish Statistical Institute (TUIK), property sales to foreigners in May 2024 declined by 34.8% compared to the same month last year, amounting to 2,064 transactions. This decrease indicates that foreign property sales accounted for 1.9% of total property sales. From January to May, property sales to foreigners totaled 9,021, marking a 45.8% decrease compared to the same period last year.
Most Sold Cities
In terms of cities, the highest number of property sales to foreigners were recorded in Antalya, Istanbul, and Mersin. Antalya led with 797 transactions, followed by Istanbul with 668 and Mersin with 164. These cities continue to be the most attractive property markets for foreign investors.
Sales by Nationality
Property sales to foreigners in May 2024 were dominated by citizens of the Russian Federation, who accounted for 437 transactions. They were followed by Iranian citizens with 207 transactions and Ukrainian citizens with 171 transactions. This data highlights the sustained interest of Russian and Iranian buyers in the Turkish property market.
Evaluation and Expectations
The decline in property sales to foreigners may be attributed to global economic conditions and internal dynamics within Turkiye. Fluctuations in exchange rates, high inflation rates, and general economic uncertainties could have reduced foreign investor interest in the Turkish property market.
However, cities like Antalya, Istanbul, and Mersin maintain their appeal due to attractive property projects and living conditions offered to foreigners. The strategic development of policies by the government to encourage foreign investment and effective promotion of Turkiye’s tourism and lifestyle opportunities could potentially increase foreign investor interest.
Future Expectations
The future of property sales to foreigners will largely depend on Turkiye’s economic stability and global market developments. Strategic initiatives aimed at revitalizing foreign investor interest could play a crucial role in attracting more transactions. Despite the decline observed in May 2024, Turkiye remains a lucrative market for foreign investors, particularly in cities like Antalya, Istanbul, and Mersin.
In summary, while the May 2024 data indicates a significant decrease in property sales to foreigners, Turkiye’s potential and the opportunities it offers continue to make it an attractive market. Strategic steps in these key areas could reignite foreign investor interest in the coming periods.
Source: Emlakdergisi / Prepared by Irem Yildiz