Turks make the most housing investments abroad in housing countries? Among European countries, Portugal, Greece and Malta generally grant residence permits with the “Golden Visa” program for 5-10 years. At the end of the residence permit period, the right to apply for citizenship can also be obtained.
So, why is the demand for overseas investment in housing increasing? Which countries are on the investor’s radar? What should be considered when investing?
Turkish investors’ housing purchases abroad have accelerated. According to Central Bank data, the amount of overseas real estate investment increased by 173 percent in 2023. The sector is expected to become even more active with Hungary joining the countries that issue golden visas this year.
Dubai also joined the Golden Visa race in 2019. The USA started issuing Green Cards with EB 5 visas with an investment of 800 thousand dollars. Saudi Arabia’s initiation of the indefinite life program with property investment and Hungary’s launch of a Golden Visa program with an investment of at least 250 thousand euros this year will further activate the sector.
On the other hand, in addition to Turkey, Antigua, Dominica, Grenada, St. Kiss and Nevis, St. Lucia, Austria, Malta, and Vanuatu are also among the countries that issue passports.
Real estate investments abroad have become a trend in Turkey. Making a statement on the subject, Landmark Titan Realty CEO Çağatay Köroğlu stated that Turkish investors are increasingly interested in purchasing real estate abroad.
6 Countries on the Turks’ Radar
Among the countries that attract investment from Turkey, England, Portugal, Greece, The United States and the United Arab Emirates stand out. According to Köroğlu, the most important reason why these countries are preferred by Turkish citizens is rental income. Köroğlu continues as follows: “The intention to invest in foreign currency comes second. The demand of those who want to diversify their investments is also significant. The desire to invest in stable economies, life and work opportunities abroad are among the leading reasons. We can also add the higher education opportunities and other socio-economic advantages offered by these countries. However, I should also point out that there may be changes in the countries preferred every year and these preferences may differ depending on personal and economic factors.”
Köroğlu stated that high housing prices and increasing costs have directed some investors to markets outside of Turkey, and said, “Investors are turning to foreign markets in search of more affordable and potentially more profitable real estate opportunities. However, factors related to foreign real estate markets need to be taken into consideration, because each market has its own risks and opportunities. Therefore, it can be said that changes in housing prices in Turkey affect demand abroad.”
Things to Consider When Buying Real Estate Abroad
So, what should be considered when buying real estate abroad? Landmark Titan CEO Çağatay Köroğlu draws attention to 3 issues:
- When buying real estate abroad, it is important to manage the purchasing processes with a real estate consultant, lawyer and financial advisor.
- Contracts and invoices must be carefully examined and the money must be sent from an official source.
- In addition, it is important to pay attention to factors such as legal status, region and location, costs, financing options, property type, investment potential, professional assistance and language/cultural differences during the purchasing process. These factors will help them have a successful property acquisition experience.
In recent years, the interest of Turkish investors in the housing market in Dubai has increased significantly. Turks, who invested over 2 billion dollars in real estate abroad in 2023, have signed important transactions, especially in Dubai. Saying that Turkish investors, who play an active role in the international real estate market, have entered the top 10 nations that have made the most real estate investments in Dubai for the first time, Çağatay Köroğlu said, “Dubai has become the most important destination where Turks have invested.”
Turks prefer to invest in real estate between 300 thousand dollars and 1 million dollars.
Stating that real estate investment in Dubai and real estate investment abroad is the first overseas experience for many investors, Köroğlu said, “Even our customers with large budgets prefer to invest in low and medium segment budgets compared to the Dubai market in general for testing purposes. In general, real estate in the 300 thousand dollars/1 million dollars range is the budget we sell the most. And these are usually branded, studio, 1+1, 2+1 apartments from residence projects.”
Housing projects in Dubai are sold out in a time period of 2 hours to two months from the pre-launch and launch.
Çağatay Köroğlu, who emphasized that the biggest difficulty experienced by Turkish investors is
the difference in sales speed between the two markets, said, “Since housing projects in Turkey generally continue to be sold for 3-5 years from the initial launch to the completion of construction, they take their purchasing decisions slowly. Since housing projects in Dubai are sold from A to Z within 2 hours to 2 months from the launch, we sometimes have customers every month who miss out on the apartment they wanted to buy, despite warning us while discussing the project, saying, “You may miss this apartment while thinking about it.”