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The Turkish real estate market has long been a promising sector in the region, attracting both local and international investors. Despite global and domestic economic challenges, Turkey’s recent housing statistics reveal a significant rebound in sales, particularly in October 2024. According to the Turkish Statistical Institute, housing sales across the country increased by 76.1% compared to the same month last year, reaching a total of 165,138 homes. However, while domestic sales have surged, foreign property sales have experienced a downturn. Below, we explore the market dynamics shaping this growth and the potential opportunities for foreign investors considering buying property in Turkey.

Surge in Domestic Sales: Renewed Confidence Among Turkish Buyers

The recent data shows that Turkey's major cities, such as Istanbul, Ankara, and Izmir, recorded the highest number of property sales in October 2024. Istanbul led with 24,812 sales, followed by Ankara with 15,257, and Izmir with 8,658. This remarkable increase highlights a robust demand within the domestic market, largely attributed to government policies encouraging Turkish citizens to invest in property as a means to hedge against inflation and soaring rental prices.

Additionally, housing sales from January to October 2024 rose by 11.9% compared to the same period last year, totaling 1,112,374 units. This steady growth offers a positive indicator of market stability and resilience, especially amid the ongoing global economic challenges. The increased activity within the local market signals renewed confidence and provides a foundation for sustained growth in the Turkish real estate sector.

Decline in Foreign Sales: Is the Market Still Attractive?

While the domestic market has rebounded, property sales to foreigners declined by 16.3% in October 2024 compared to the previous year, with only 2,122 units sold. Factors contributing to this decline include fluctuations in the Turkish lira and regulatory changes impacting foreign ownership. Nevertheless, Turkish cities like Antalya and Istanbul continue to attract foreign investors, with Antalya recording 750 sales to foreigners and Istanbul following closely with 724 sales.

Despite the dip in foreign sales, Turkey remains a top choice for international investors thanks to its strategic geographic location, comprehensive amenities, and relatively safe environment compared to other countries in the region. The Turkish government has also been proactive in creating incentives for foreign buyers, including flexible financing options and residency programs, which are particularly attractive in key cities that serve as hubs for tourism and investment.

Rise in Mortgage Sales: Increased Accessibility for Domestic Buyers

Another notable trend is the significant increase in mortgage-financed home purchases, with mortgaged sales across Turkey rising by 278.2% in October 2024, reaching 21,095 units. This increase reflects a strong shift towards homeownership through financing, making real estate investment more accessible for local buyers. This shift not only enhances market stability but also strengthens investor confidence by offering various payment options for property purchases.

Real Estate Investment Opportunities in Turkey: Why Foreign Investors Should Seize the Moment

Turkey boasts several advantages that make it a prime destination for real estate investment, including its robust safety and infrastructure, diverse amenities, and government-backed incentives. The Turkish government has been laying the groundwork to attract more foreign investors by revising property laws, improving infrastructure, and easing restrictions on property ownership.

For foreign investors, Turkey’s major cities such as Istanbul, Antalya, and Izmir offer a wide range of property options, including apartments for sale in Istanbul and Antalya, at competitive prices and varying sizes to meet diverse needs. Additionally, the country provides enticing incentives for foreign property buyers, including citizenship for purchases exceeding a certain value, enhancing Turkey’s global appeal as a real estate investment destination.

The Turkish Real Estate Market Poised for Renewed Growth

Recent data suggests that Turkey’s real estate market is indeed back on a growth trajectory, particularly with robust local demand reflecting renewed trust in the sector. While challenges remain in attracting foreign investors, Turkey’s real estate market continues to offer a unique investment opportunity. In the current global economic climate, investing in Turkish property remains an attractive prospect for those seeking stability and growth in a competitive market.