Istanbul Property: Consequences of the Increase in the Minimum Requirement Limit for Turkish Citizenship by Investment

ISTANBUL, April 29, 2024 /PRNewswire/ -- After Turkiye's revised decisions for the real estate sector, the requirement to benefit from the citizenship application program increased from $250 thousand to $400 thousand.

Following the legislative changes post-2018, the adoption of the Golden Passport scheme in Turkiye sparked a surge in interest among foreign investors. This trend was clearly evident in the 2019 real estate sales data to foreigners released by the TurkStat data portal. In 2019, the number of housing sales to foreigners reached nearly 50 thousand. However, after a subsequent revision in regulations, notably in 2023, there was a significant downturn, with sales to foreigners decreasing by approximately 67%.

The rate of house sales to foreigners has been declining in the last two years and will continue to do so.

There are differing viewpoints regarding the impact of the changes in the Turkish Citizenship Programme regulations in 2018 on property values in Turkiye. Some contend that these alterations caused a sudden surge in property values. Conversely, others argue that the sale of housing to foreigners did not directly contribute to an increase in property values.

Former President of the Chamber of Civil Engineers, Cemal Gokce, highlights the correlation between housing sales to foreigners and the escalation of property prices. Gokce asserts, "The sale of properties to foreigners, conducted in dollars and euros, becomes a focal point for construction firms, shaping market prices accordingly. This inevitably drives prices upwards."

The real reason for the increase in value can be determined in the coming years.

Despite the recent decline in the rate of house sales to foreigners due to the latest regulations, global events have the potential to reignite growth in Turkiye's property sector. Analyzing the nationalities of buyers in house sales to foreigners during the first quarter of 2024 reveals a resurgence in interest. Russian Federation citizens reclaimed the top position, purchasing 411 houses in March alone. Following Russia in sales were citizens from Iran with 182 houses, Ukraine with 129 houses, and Iraqi citizens with 82 houses, demonstrating continued international interest in Turkiye's real estate market.

Murat Padar, CEO of Istanbul Property, Turkiye's one of leading real estate companies, and his team have noted a period of "calmness" in property sales to foreigners in Turkiye. However, they emphasize that Turkiye retains its top position in the property investment league, largely owing to the Citizenship by Investment Application, which is comparatively easier than similar programs in other countries.

Contact: Baris Kurt, [email protected], +90 530 451 51 51

SOURCE Istanbul Property