Why do foreigners prefer buying real estate in Istanbul?
Istanbul has witnessed a quantum leap in the real estate sector. It is equipped with real estate with smart and modern designs, as well as classic designs. If you want to buy a property in Istanbul, here is everything you should know about the future of real estate investment in this city:
With the aim of examining the behavior of foreign real estate investors in Istanbul, a report was prepared in coordination between the “Association for the Promotion of Foreign Real Estate” or what is known as GİGDER and AGS Global, which specializes in real estate marketing studies, and the report was entitled “Competition and Inspiration: Rethinking Enhancing the Future of Foreign Real Estate Investments in Istanbul”.
What are the goals of foreign real estate investors from owning apartments in Istanbul and what is the future of real estate investments for foreigners within the next ten years:
- Determining the strategy for promoting real estate in Turkey in general and in Istanbul in particular.
- Identify strengths and weaknesses in the real estate market
- Study of external demand and the factors affecting it
- Study of competitive markets
- Study the variables that affect foreign real estate investment, whether they are social, political or legal.
According to official reports, the Turkish state is at the forefront of the world in the real estate sector and is witnessing a great demand from foreign investors. The value of these investments amounted to about 6.8 billion dollars in 2019, while the volume of real estate investments around the world amounted to about 380 billion dollars.
These reports mention some data about foreign investment rates in Istanbul:
- Only 45% of foreigners seek to buy a property as an investment
- Only 30.5% buy a property for the holiday
- While the percentage of real estate purchases for investment is about 28%.
- As for those wishing to obtain Turkish citizenship, their percentage is 28%, and those wishing to reside in real estate constitute about 14%.
- 40% of foreigners buy real estate after retirement
- As well as those wishing to buy a property in order to follow up on some procedures in Istanbul, such as trade, work and science
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How do the facilities for granting Turkish citizenship affect the real estate sector in Istanbul?
The above-mentioned figures and data indicate that nearly a quarter of real estate investments for foreigners are for the purpose of obtaining Turkish citizenship, which is a significant number. Real estate records indicate an increase in demand by foreigners for real estate investment in Istanbul, and these investments must be classified according to the type of property Purchased:
- The overwhelming proportion of foreigners (90% of them) have purchased apartments within residential complexes or buildings, and this percentage is divided into: 57% of them preferred new apartments ready to move in, 3% of them bought apartments in progress, 11% of them went to used apartments
- 5% of foreigners have bought houses or villas.
- 2.9% of foreign investors choose commercial real estate
Through the survey, it was found that the vast majority of foreigners, 92.7 percent, still keep the properties they owned, while 7.3 percent are selling them again, and the bulk of the investors as a whole want to buy another property.