“Economic paradise” without sanctions for the Russians, Turkey: “First” in the housing markets

Sales of Turkish homes recorded jump 107.5% in May compared to 122,768 homes last year, according to data released today by Turkish Statistical Institutewith Russians to be at the top of the ranking of foreign buyers for the second consecutive month.

Sales to foreigners jumped 235.7% year-on-year to 5,962 properties, according to the institute, as they sought to capitalize on a government plan giving Turkish citizenship to homebuyers.

Industry executives said sales to foreigners jumped before the law, which raises the minimum purchase value to $ 400,000 from $ 250,000, came into force this week.

Gul Gul, founder of real estate firm Golden Sign, said foreigners had flocked to the market after the measure was announced last month.

“Foreigners have made intensive purchases in order not to be affected by the price increase,” she said.

Russian citizens are again at the top of the ranking in May with 1,275 houses, compared to 1,152 in April. The Iranians and the Iraqis follow. Russians and Ukrainians account for more than 25% of foreign sales, according to the figures.

Wealthy Russians are pouring money into real estate in Turkey and the United Arab Emirates, seeking an economic paradise following Moscow’s invasion of Ukraine and subsequent Western sanctions, many real estate companies have said.

Macbul Gionel Maya, general manager of real estate appraisal company TSKB, said that in addition to the upper limit on citizenship, sales to foreigners had also increased due to higher demand from Russians after the outbreak of the conflict in Ukraine.

Sales to foreigners are also bringing foreign exchange to the Turkish economy, with many hoping for support for the pound, which continues to be under pressure.

Industry officials estimate that $ 10 billion entered the economy in 2021 thanks to the sale of homes to foreigners, with sales amounting to 58,576 properties.