In the first six months of 2018, the number of foreign buyers of Turkish real estate increased by 23% year-on-year. This shows the country is still a popular overseas destination for property investors, according to Julian Walker of Spot Blue International Property.

At a glance:

• Nearly 12,000 houses were sold in Turkey to foreigners in first six months of 2018.
• Domestic sales have dropped by 1.3%.
• Istanbul remained the most popular destination for foreign buyers.
• Since 2013, the number of Turkish properties sold to international buys has almost doubled.

Attracted by low prices and the current exchange rate working in their favour, nearly 12,000 houses were sold across the country to foreigners, which was a surprise for many considering domestic sales have dropped by 1.3%.

The decline of domestic sales is a result of higher interest rates on mortgages, which are down 18% year-on-year. Mortgages usually account for 31% of all domestic house sales in Turkey.

The results announced by TURK STAT (Turkish Statistical Institution) showed that a third of overseas sales were to Middle Eastern nationalities, with nationals from Germany and the UK also being within the top 10 foreign nationalities to buy property in Turkey. 

Staying true to form, Istanbul remained the most popular destination for foreign buyers with nearly 4000 houses sold to various nationalities. Antalya followed closely by selling 2883 homes to overseas buyers, while Bursa, having climbed the ranks over the last four years, took third place with 812 properties.

The results follow a successful year for overseas purchases in 2017. Last year, results show that foreigners bought just over 4.6 billion USD worth of property, or just over 22,000 homes, a welcome relief after 2016 when sales declined.

Credit for the increase has been given to the citizenship and VAT exemption schemes offered by the Turkish government. A significant factor is also appealing worldwide to a variety of different nationalities which really take place when the reciprocal law was lifted in 2013.

Apart from 2016, the amount houses sold in Turkey to foreigners has increased each year since 2013, when the number amounted to only 12,181. The climbing trend of foreign buyers of Turkish real estate is expected to continue through the rest of 2018 and into 2019.

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