Big decrease in housing sales to foreigners
There has been a decrease in housing sales to foreigners throughout Turkey, including Alanya and Istanbul, for the last 7 months. This decline is seen by many industry experts as being linked to increased "international hostility". Istanbul Chamber of Commerce President Şekib Avdagiç and Real Estate Affairs Association President Bayram Tekçe also support this idea.
The decline in housing sales to foreigners continues. According to the news by İbrahim Ekinci from Ekonomim, İTO President Avdagiç said that xenophobia is "the biggest threat in the near and medium term" for housing sales and tourism. In a statement, GİGDER President Bayram Tekçe stated the "negative perception of irregular immigrants" as the primary reason, and sector expert Ahmet Büyükduman also pointed out legislation and implicit xenophobia.
Experts listed the reasons for the decline as follows:
Loss of investment appetite in Turkey, economic and political uncertainties, earthquake disaster and possible Istanbul earthquake, frequent changes in bureaucratic and legal rules, lack of a transparent and investor-friendly market, insufficiency of financial instruments such as Montgage, rival countries such as Dubai becoming attractive.
Although buying a house to obtain citizenship is still attractive, there is a decline in sales.
According to Endeksa's data, while the value of houses across Turkey increased by 65% in 2021, there was an increase of 147% in 2022 and 84% in 2023. After the pandemic, the amount required to obtain citizenship was reduced to 250 thousand dollars, which significantly increased the sales volume. At this point, it has fallen to the level of 1000-2000 per month due to the increase in the housing value required for citizenship and the impact of inspections.
According to GİGDER's predictions, this decline will continue in the next 3 months.
The consequences of the decline were listed as follows:
DECREASE IN FOREIGN EXCHANGE INTRANS
Real estate sales are considered foreign direct investment (FDI). The decline also causes a decrease in FDI inflows. FDI inflows decreased by 43 percent in 2023 compared to 2022.
UNCERTAINTY IN HOUSING PRICES
Some investors think there is a bubble in housing prices and expect them to fall. This situation negatively affects sales.
EVEN CIVIL SERVANTS SELL HOUSES
Some of those who have obtained the right to sell after completing 3 years are selling their homes. This indicates that more sales may increase in the future.
Experts think that the decrease in sales in the long term may negatively affect Turkey's economy and real estate sector. Reducing xenophobia and removing bureaucratic obstacles are suggested as solutions.
