Turkish real estate market after quarantine


The introduction of quarantine measures caused by the coronavirus pandemic had a negative impact on real estate sales in the vast majority of countries around the world. Turkey, which has been one of the most popular destinations among Russian investors in recent years, is no exception in this regard. However, the Turkish real estate market after quarantine began to recover much faster than others, and already in July broke all historical records.

If in the first 10 days of March 2020 not a single purchase and sale transaction was registered in Turkey, in April sales volumes fell by more than 50% compared to the same period last year, and in May the first signs of recovery were just beginning to appear. Then June and July became truly turning points. According to official data from the Turkish Institute of Statistics (TUIK), 190,012 properties were sold in June, an increase of almost 210% compared to June 2019. At the same time, a third of the transactions occurred in the main metropolitan areas of the country: Istanbul, Ankara and Izmir.


TURKISH REAL ESTATE MARKET AFTER QUARANTINE

An unprecedented mortgage campaign launched by the local government in May played an important role in such a sharp increase in demand for housing in Turkey. Within its framework, loan rates dropped to 6% per annum for foreigners, and for Turkish citizens they amounted to 1%. This was also reflected in prices, which in large cities and seaside resorts increased by 15-30% during June alone. On average, prices for apartments in modern houses within walking distance from the sea and in close proximity to all necessary infrastructure start from 60 thousand USD, although when purchasing a new building at the foundation stage you can save up to 30% without risking anything. The cost of housing in Turkey is also affected by the number of floors of the building and the presence of a closed area with a swimming pool, recreation areas, children’s and playgrounds. It is no coincidence that the majority of foreign buyers were families with children, who are increasingly thinking about moving to Turkey for permanent residence.


TURKISH REAL ESTATE MARKET AFTER QUARANTINE

This issue turned out to be especially relevant due to the fact that many companies have transferred their employees to remote work. This circumstance has also influenced the preferences of foreign investors, who are now focusing on apartments with spacious balconies and terraces or small houses with land plots in residential complexes located at a distance from the center. This trend will continue in the near future, since the likelihood of restrictions returning to one degree or another remains almost everywhere.

At the same time, the closure of borders did not stop foreigners who had previously decided to buy property in Turkey. This was facilitated by the introduction of a special offer, thanks to which it became possible to make a purchase online. During the quarantine period, Russian citizens purchased about a hundred residential properties in this way, and after the opening of the border, which took place on August 1, their number will grow. Moreover, in addition to the Germans, many Turkish realtors place their main hopes on the Russians and are even ready to make concessions to them.


TURKISH REAL ESTATE MARKET AFTER QUARANTINE

For those who are considering buying a property in Turkey for holidays and/or investment with a view to subsequently renting it out, this country is attractive for its proximity and the absence of a visa requirement. Those who plan to stay here for a longer period can quickly and easily obtain a residence permit for two years with the possibility of its extension, and in the case of purchasing real estate at a price of 250 thousand USD, obtain Turkish citizenship.



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