Real Estate

26 thousand 165 houses were sold to foreigners in Jan-Sept period

The construction sector, which is one of the sectors most affected by the pandemic, has managed to erase the traces of the pandemic in sales thanks to the proactive measures taken by the government and the low-cost credit opportunity of the sector under the leadership of public banks.

Housing sales to foreigners, which started to decline in March, when Covid-19 case was first seen in Turkey, decreased to the lowest level of the last 7 years with 790 units in April and started to rise again in May.

September was recorded as highest selling month of 2020 and the highest selling month in the history of the sector with 5 thousand 269 sales.

In September, housing sales to foreigners increased by 26.1 percent compared to September 2019 and 35.3 percent compared to August; thus, housing sales to foreigners returned to their pre-pandemic high levels.

In the Jan-Sept period of this year, a total of 26 thousand 165 houses were sold to foreigners, this number was 31 thousand 925 in the same period last year. Although these data indicate a decrease of 18 percent compared to the same period of the previous year, sector representatives said that the upward momentum will continue in the last quarter of the year and they can complete the year with a sale of over 40 thousand.

The highest sales in the sector history was made in September

Istanbul was the most preferred by foreigners and had the highest sales in September with 2 thousand 370 units; also, a total of 11 thousand 966 houses in Istanbul sold foreigners in the first 9 months.

Antalya became the second most preferred city of foreigners with 1,018 houses sold. Antalya was followed by Ankara with 347 houses, Bursa with 239 and Yalova with 168 houses.

Iranians bought the most house from Turkey with 908 units in September; Iranians were followed by Iraqis with 826 houses and Russians with 448 houses. Iranians also purchased the most houses in the first 9 months with 4,716 units; during the 9-month period, Iraqis owned 4 thousand 165 houses, Russians 1895, Afghans 1277 and Azerbaijanis 711 houses.

‘’It is important that the sales number exceeded 5 thousand despite the pandemic.’’

Faruk Akbal, the board chairman of Real Estate Overseas Promotion Association (GIGDER) and Nevita stated that 26.8 percent increase in September housing sales gave hope to the international investors for the future. He said:

‘’The international investors increasingly demand Turkish housings. 26 thousand 446 houses were sold to foreigners in the first nine months of the year. The number of houses sold to international investors increased with the decrease in the pandemic effects.

The increase in these sales will continue. Turkey’s growing leadership, gives confidence to international investors. It is important that the sales number exceeded 5 thousand despite the pandemic. Turkey is now organized in marketing housings to the foreigner. It is a strong sign that we are now getting ahead in the competition with Europe.’’

‘’Foreign investors trust and interest in Turkish housings.’’

Altan Elmas, the board chairman of Housing Developers and Investors Association (KONUTDER) and Sur Construction stated that the sale number of 5 thousand 200 is a success. He said:

‘’The international investors’ interest is a sign showing the vitality of Turkish real estate sector. Although the increase in the exchange rate has a negative effect on us, it has a positive effect on foreign sales. We will see that the sales to foreigners have increased a little more in the next month.’’

Ibrahim Babacan, the board chairman of Babacan Holding stated that the interest and trust of foreign investors still continue and that the effect of citizenship right incentives on the increase in demand continues. He also mentioned that reliable companies stand out in the sector since foreigners mostly prefer the houses that are completed, deeds given and delivered.

‘’Foreign representatives will accelerate the sector sales.’’

Abdulkadir Akkus, the board chairman of Akkus Group also talked about the issue:

‘’The foreign investors were back down due to the negative pandemic effects; but after they see the successful pandemic management of Turkey, they inclined to the sector again.

Health, tourism and estate sector support each other and utilize each other. The direct relation of these sectors was observed during the pandemic period. The initiative of the Ministry of Environment and Urbanization to open representative offices in 12 countries in order for foreign investors to easily access housing will accelerate the increase in demand. We will see an increase in sales to foreigners until the end of the year. We are in a period where we are laying the foundations of 2021.”

‘’The sales will be accelerated with the effect of the foreign investors.’’

Tamer Ozyurt, the board chairman of Ozyurtlar Holding stated that foreign investors witnessing the successful pandemic management of Turkey, will accelerate the housing sales if the appropriate conditions are provided. Ozyurt talked about the increasing foreign interest in the normalization process:

‘’The pending demand has rapidly turned into hot sales; we are at the beginning of a process where we are experiencing the gains of the pandemic for foreign investors.

The interest of foreign investors in our current projects has increased. the foreign investor found the trust they were looking for in the Turkish real estate sector with the effect of the increase in the exchange rate. Thanks to the representative offices to be opened by the Ministry of Environment and Urbanization in 12 countries, Germany, England, Greece, Austria, Holland, Denmark, Norway, Russia Belgium, Qatar, Azerbaijan and to the potential investors living in the Central Asian Turkish Republics, which may come to Turkey without having to buy or sell housing. Therefore, It is possible to sat that the increase in foreign investors will continue till the end of the year. “

source: AA / translated by Melisa Karayusufoglu

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