Russians Take the Front Seat in Purchasing Property in Turkey
In 2024, Turkey witnessed a surge in real estate sales, with over 4,800 Russian buyers making property purchases, 438 of which occurred in December. Iranians and Ukrainians followed closely behind with nearly 2,170 and 1,630 deals, respectively, for the year.
The surge in housing sales across Turkey reached 1.48 million, marking a 20.6% increase from the previous year. Istanbul saw the most sales, with over 239,200 properties, followed by Ankara and Izmir with 213,000 and 80,400, respectively.
According to RBK-Real Estate, Russians have been leading in foreign real estate purchases in Turkey since April 2022. However, the volume of deals with Russians has dwindled significantly in comparison to 2023 and 2022. In 2023, Russians bought 10,560 properties in Turkey, and in 2022, they recorded a high of 16,310.
Experts interviewed by RBK-Real Estate attributed this dynamic to several factors. These include Turkey's volatile economic situation, inflationary pressures, and currency depreciation, which collectively contribute to a decrease in demand. Alexey Kotlov, General Director of GZH.A.RF, added that decreased demand from Russian citizens was also due to many individuals executing their plans to obtain a residence permit or move to Turkey in previous years.
Current obstacles for foreign real estate purchases in Turkey, according to Kotlov, include difficulties in transferring funds abroad. Notably, foreign home buying in Turkey, particularly in preferred destinations like Istanbul, Antalya, and Mersin, has seen a substantial retreat. Antalya, a traditional hotspot for Russian buyers, has experienced a drop in foreign home sales by over 20% year-on-year, signifying decreased demand from Russian investors. Housing prices in Turkey, driven by inflation, depreciation of the Turkish lira, and increased construction costs, have also reached record highs, making properties less affordable.
In the face of economic instability and affordability issues, Iranians and Ukrainians have been seen investing in Turkey's real-estate market, as Russian buyers slow down their purchases following a peak in 2022. This shift in financing patterns has been partially attributed to factors such as Turkey's volatile economy, inflation, and difficulties in transferring funds abroad, which have led to a decrease in demand from foreign investors, particularly Russians.
