Latest news from WST Immigration: Recently, a report from Nevita International stated that in the first half of 2019, foreigners purchased $3 billion worth of real estate in Turkey! It is noteworthy that previous data released by the Turkish Statistical Institute (TURKSTAT) indicated that foreigners purchased $4.6 billion worth of Turkish real estate in 2018, and within just half a year in 2019, this figure has already soared to $3 billion, which shows the level of demand for the Turkish real estate market among international investors!
According to data reports from the Turkish Statistical Institute (TUIK) and the Central Bank, during the period from January to June 2019, Turkey sold a total of 19,952 houses to foreigners, compared to 11,816 houses sold during the same period last year, representing a 67% increase. Among these, Istanbul accounted for the highest number of houses sold to foreigners, reaching 8,900 units, or 45%. The agency predicts that this year the number of houses purchased by foreigners in Turkey will reach a record 50,000 units!
So, why is the Turkish real estate market so booming? Experts from WST Immigration express that Turkey, as a rapidly developing emerging market, is a land of opportunity for European investors! As one of the key drivers of Turkey's economic growth, the real estate sector will welcome tremendous investment opportunities!
The demand for housing in Turkey is continuously rising.
Turkey currently has a population of approximately 81 million, with an average age of 31 years and a population growth rate near 2%. Analysts predict that the population structure in Turkey will continue to be growth-oriented until 2050, releasing demographic dividends for at least another 30 years. Compared to EU countries, Turkey has a large youth population, mostly young, vibrant, and well-educated people from diverse cultures. There is a strong domestic demand for housing due to this significant demographic dividend!
On the other hand, as a country with significant net immigration, Turkey shows a consistent trend of increasing foreign population! According to reports from the Turkish government, the number of residence permit applications reached as high as 992,330 in 2019, indicating nearly 1 million immigrant investors annually, resulting in substantial housing demand! The net inflow of population is leading to a sustained rise in rental and purchase demands in Turkey!
The Turkish government's incentive policies for property investors.
The growth in Turkish real estate sales can be attributed to a series of favorable policies implemented by the government. A key measure was announced on September 18, 2018, when the Turkish government reduced the citizenship investment threshold by 75%, from $1 million to $250,000! This move caused a seismic shift in the industry, leading a large number of immigrant investors to rush into Turkey, making Istanbul a hot city for global real estate investment! At the same time, the Turkish government's stimulus policies for property investors have further fueled the boom in the Turkish real estate market, including lower property purchase taxes, exemption from value-added tax, optimized digital land registration and cadastral management systems, and reduced transfer fees for property ownership. These significant changes have not only enhanced the appeal of immigration through real estate purchases in Turkey but also actively promoted international investors to invest in Turkish real estate.
Good opportunities for Turkish real estate investment.
Recently, against the backdrop of the onshore and offshore RMB exchange rates breaking 7 against the US dollar, diversified asset allocation has become imperative. Including real estate in investment portfolios can enhance the stability of investments! Turkish properties, being rare USD assets, can assist investors in achieving favorable global asset allocation! At the same time, due to fluctuations in the exchange rate between the Turkish lira and the US dollar, foreign buyers can acquire Turkish real estate at a lower cost, significantly reducing investment expenditures. Experts from WST Immigration express that given the current relaxation of Turkey’s property purchase immigration policies and fluctuations in currency, now is an excellent time to immigrate and invest in Turkey!