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Key Insights from July 2024

1. Overall Foreign Property Sales Decline
In July 2024, foreign buyers purchased 2,350 properties in Türkiye. This figure marks a significant decrease of 16.1% compared to July 2023. Despite the decline, these sales accounted for 1.8% of the total property sales in Türkiye for the month.

2. Regional Breakdown: Antalya Leads the Way
When examining the data on a regional basis, Antalya continues to dominate as the top destination for foreign property buyers, with 878 properties sold in July 2024. Istanbul followed closely with 752 sales, while Mersin rounded out the top three with 218 properties sold. These numbers highlight the continued appeal of coastal and metropolitan areas for international investors.

3. Year-to-Date Overview
Looking at the broader picture, from January to July 2024, a total of 12,811 properties were sold to foreign buyers, reflecting a sharp 42.0% decrease compared to the same period in 2023. This year-to-date decline underscores the challenges faced by Türkiye’s real estate market in attracting foreign investment during this period.

Nationalities Driving the Market

1. Russian Federation Citizens Lead the Pack
Russians remain the most active foreign buyers in Türkiye’s property market. In July 2024, citizens of the Russian Federation purchased 485 properties, making them the top nationality in terms of property purchases.

2. Ukrainian and German Buyers Follow
Ukrainian buyers ranked second with 171 properties purchased, while German buyers came in third with 162 properties. These figures highlight the diverse range of nationalities investing in Türkiye, with European buyers continuing to play a significant role.

Analyzing the Trends

1. Geopolitical Factors and Economic Conditions
The decrease in foreign property sales can be attributed to various factors, including global economic uncertainties and geopolitical tensions, particularly in the region. The ongoing conflict between Russia and Ukraine, along with economic sanctions, may have impacted the purchasing power and investment decisions of Russian and Ukrainian buyers.

2. Market Adjustments and Currency Fluctuations
Fluctuations in currency exchange rates and inflationary pressures in Türkiye may also have influenced the purchasing decisions of foreign investors. The Turkish lira’s volatility can either attract or deter foreign buyers, depending on market conditions.

3. The Appeal of Coastal Regions
Despite the overall decline, the continued interest in properties in Antalya and Istanbul underscores the lasting appeal of Türkiye’s coastal and metropolitan regions. These areas offer a mix of luxury, lifestyle, and investment potential that continues to draw foreign buyers, even in challenging market conditions.

Conclusion: What Does This Mean for Future Investors?

While the decline in foreign property sales in Türkiye during July 2024 presents challenges, it also highlights opportunities for savvy investors. The continued interest in key regions like Antalya and Istanbul, coupled with the dominance of Russian and European buyers, indicates that Türkiye remains an attractive destination for international property investment.

For foreign investors considering entering the Turkish real estate market, this period of market adjustment could offer favorable conditions for long-term investment. Properties in desirable locations are likely to maintain their value, and the current market dynamics may present opportunities to negotiate favorable terms.

At Dom Istanbul, we specialize in guiding international clients through the complexities of Türkiye’s real estate market. Whether you are looking to invest in a coastal property, a city apartment, or a luxury villa, our team of experts is here to help you navigate the market and make informed investment decisions.

Contact Dom Istanbul today to explore the best real estate opportunities in Türkiye and discover how we can assist you in finding the perfect property for your investment needs.