Sales of real estate to foreigners in Turkey Increased in the first half of 2019
Housing sales to foreigners in turkey increased by 30.5 percent in June, Where the number of apartments sold to foreigners during the last month 2,689 homes. The number is the highest in half a year in the history of home sales to foreigners in Turkey.
Istanbul was ranked first among the Turkish states, the number of apartments sold to foreigners during the first half of the current year: 8,903 housing units.
According to the nationality of the buyers, the highest number of houses sold to Iraqi citizens, where the number of housing sold to Iraqi citizens during the month of June last 429 apartments, respectively Iranians with 415 unit, and in third place Russian citizens with 190 apartments. followed by German, British and Kuwaiti nationalities, respectively.
The number of homes sold to foreigners in all Turkish states during the first six months of this year was 19,952 units, i.e. an increase of 68.8% over the same period last year.
Effect of the Turkish citizenship Law:
The Turkish citizenship law and its subsequent amendments had the greatest effect on the increase in sales to foreigners. This law grants every foreigner who buys a property worth $ 250,000 or more the right to apply for Turkish citizenship. which reflected positively on the Turkish real estate sector, Only Istanbul achieved an increase of 22.6% during the first half of 2019 compared to the same period of 2018.
Mortgage sales drop:
The high interest rate of mortgages has led to a significant drop in mortgage sales, where the number of housing mortgages in June 2019 decreased by 84.6% compared to the same month last year.
In addition to the high interest rate, the citizenship law was instrumental in reducing the demand for mortgages, because the law requires payment of the full price of the property when applying for citizenship. In addition to the discounts provided by construction companies to investors who want to buy in cash.
Particularly, large-scale branded housing projects direct foreign sales by seeking high added value and prestige, the new regulations that facilitate the investment in turkey is not only effect the real estate sector, But it gains the Turkish economy as a whole.
Foreigners who invest in real estate sector spend a certain period of the year in turkey, that creates new business fields in turkey.
The upward trend of foreign investment is expected to continue in the coming months.
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