Great Decline in Real Estate Investments
The last two years have been a period in which we closely followed the movements of foreign investors in the real estate market in Turkiye. The latest evaluations made by EVA Real Estate Appraisal reveal the significant changes that took place during this period, with an analysis covering the first three months of 2023 and 2024. The data, examined in a wide range from the provinces where foreign investors prefer to purchase to the most purchased real estate types, draws attention especially with the dramatic decreases observed in the first quarter of 2024. This analysis discusses in detail the current situation and trends of foreigners in the Turkish real estate market.
EVA Real Estate Evaluation evaluated the foreign investors of the first 3 months of 2023 and 2024
EVA Real Estate Evalaution discussed the real estate investments made by foreign investors in Turkiye in the last two years, based on the top 10 countries and the top 10 most preferred provinces. EVA Real Estate Appraisal, which evaluates foreign investments in Turkiye on the basis of total surface area and all transactions, revealed that investments decreased by 71% on a square meter basis in the first 3 months of 2024 compared to the same period of the previous year.
EVA Real Estate Evaluation, which scrutinized all real estate purchases made by foreign investors in Turkiye as of 2024 and the first 3 months of 2023, determined that there was a 71% decrease in square meters and a 45% decrease in the number of transactions as of the first 3 months of 2024, compared to the same period of 2023.
EVA Real Estate Evaluation examined the real estate purchases made by foreign investors in Turkiye in the same period of 2024 with the data of the first 3 months of 2023. According to the data of the Land Registry Foreign Affairs Department; Real estate acquisitions by foreigners, which were 1 million 628 thousand 744 square meters at the end of the first 3 months of 2023, decreased by 71% in the same period of 2024 and became 471 thousand 116 square meters.
According to TUIK data, a total of 19 thousand 275 houses were sold to foreigners throughout Turkiye.
According to the data announced by TUIK regarding housing sales; In terms of units, a total of 5 thousand 685 houses were sold across Turkiye as of the first 3 months of 2024. There was a 48% decrease in the first quarter of 2024 compared to the same period of 2023. While the ratio of residences sold to foreigners in total housing sales was 3.86% as of the end of the first 3 months of 2023, this rate decreased to 2.03% in the same period of 2024.
In real estate, Iraq ranks first in terms of surface area, while the Russian Federation ranks first in terms of sales.
As of the first 3 months of 2024, when all real estate investments of foreigners on the basis of surface area corresponding to the total share in Turkiye are examined, Iraq ranks first in terms of surface area. Iraq is followed by Afghanistan, Iran, Russian Federation, Germany, Azerbaijan, the United States, Kazakhstan, China and Ukraine.
Russian Federation ranks first in real estate sales across Turkiye
As of the first 3 months of 2024, the Russian Federation, which ranked first last year, took the first place in the total number of real estate sales to foreigners across Turkiye. The Russian Federation was followed by Iran, Ukraine, Iraq, Germany, Kazakhstan, Azerbaijan, Afghanistan, the United States and China.
Istanbul, Antalya and Mersin are in the top three in terms of foreign sales in real estate investment.
In terms of total area share of all property types, Istanbul was the most preferred city for foreign real estate investments in the first three months of 2024, followed by Bursa, Mersin, Yalova, Antalya, Sakarya, Mugla, Izmir, Ankara, and Kocaeli in order.
Among the most preferred cities in terms of all real estate in the first 3 months of 2024, Istanbul ranked first in terms of sales volume. Istanbul was followed by Antalya, Mersin, Ankara, Bursa, Yalova, Mugla, Izmir, Kocaeli and Sakarya, respectively.
The share of Gulf countries in foreign real estate investments fell to 21%
The investments made by the Gulf countries, which have a significant weight in foreign real estate investments, on a square meter basis in all real estate types, which were 377 thousand 606 m² in the first 3 months of 2023, decreased by 74% to 99 thousand 429 m² in the same period of 2024. In addition, evaluating the situation of the Gulf countries in total foreign investments, EVA Real Estate Appraisal reveals that the share of the Gulf countries in the total foreign investment on a square meter basis in the first 3 months of 2023, which was 23%, decreased to 21% in the same period of 2024.
There was a 67% decrease in real estate sales to foreigners in Istanbul on a m2 basis in 2024 compared to the same period in 2023.
Regarding real estate purchases made by foreign investors in Istanbul at the end of the first 3 months of 2024 and in the same period of 2023, according to the data of the Land Registry Foreign Affairs Department; Real estate acquisitions by foreigners, which were 60 thousand 600 square meters in the first 3 months of 2023, decreased by 67% in the same period of 2024, reaching 60 thousand 600 square meters.
Iran ranked first in housing sales to foreigners in Istanbul
As of the end of the first 3 months of 2024, Iran ranks first in all real estate investments by foreigners in Istanbul in terms of total units. In terms of total units, Iran is followed by the Russian Federation, Iraq, China, Palestine, Afghanistan, Azerbaijan, Egypt, Algeria and Saudi Arabia.
There was a 42% decrease in housing sales to foreigners in Istanbul in terms of units in 2024 compared to the same period in 2023.
Regarding the number of house sales, according to the data received from the Land Registry Foreign Affairs Department, a total of 2 thousand 612 houses were sold to foreigners in the first 3 months of 2024, across Istanbul. With this figure, there was a 42% decrease compared to the same period in 2023.
According to TUIK data, the ratio of houses sold to foreigners in Turkiye within total housing sales was 3.86% as of the end of the first three months of 2023, while this rate decreased to 2.03% in the same period of 2024.
District preferences were Esenyurt, Beylikduzu, Basaksehir
The districts most preferred by foreigners in terms of quantity for real estate acquisitions in Istanbul were Esenyurt, Beylikduzu, Basaksehir, Kucukcekmece, Avcilar, Bagcilar, Buyukcekmece, Kagithane, Sisli and Sariyer, respectively, in the top ten.
Source: Emlakdergisi / Prepared by Irem Yildiz