Luxury sales will increase, the economy will gain


In Turkey real estate wishing to become a naturalized citizen foreign investorChanges have been made to the minimum purchase amount of a house for As a result, the real estate value to be taken in the application for Turkish citizenship has been increased from $250,000 to $400,000. In 2018, it was reduced to $250,000 in order to increase the purchase of foreign housing. The increase in the figure to $400,000 was welcomed by the real estate industry.


Istanbul Builders Association (IDER) Chairman of the Board Nazmi Durbakalım said: “For those who wish to acquire Turkish citizenship by buying real estate, it is a good decision to increase the lower limit at $400,000. Raising the lower limit of citizenship would be a positive development in many ways. Because every inch of our country’s land and citizenship is very valuable in geopolitical, historical and natural terms. On the other hand, the money that those who want to have this value will pay will contribute more to the economy of our country. In addition, it will be conducive to more qualified foreigners who will buy real estate in our country.


Murat Kurum, Minister of Environment, Town Planning and Climate Change, made a statement on this and said, “There are about 40-45-50,000 foreigners selling houses per year. Last year, home sales to 59,000 foreigners were at issue. This rate means 3 percent in a sale of 1.5 million. When you look at Istanbul specifically, it corresponds to 3 or 5%. Selling to strangers is not a situation that increases the price of housing. There is no human attitude like being kind to people, instilling trust, saying “Come and sit in the safe harbor”. We are talking about a globalized world. Are our fellow citizens buying a house abroad? They get it,” he said.


Stating that there will be an increase in luxury home sales with the decision, Denge Valuation’s Chairman of the Board, Baki Budakoğlu said, “When we look at today’s current prices, the Real estate prices in our country are always reasonable compared to the purchasing power of foreign investors. With this settlement, it would be appropriate to say that a more prominent investor will come to our country after the amount required for citizenship reaches $400,000.


Dilek Tunç, Real Estate Project Director of Bosphorus International, said: “We are in a period of growth in sales to foreigners. Everyone expected such a change during this period. Especially in branded housing projects in Istanbul, since the price of houses bought for citizenship is established according to the rate of return on investment, citizenship can be obtained even when 1+1 is bought, but now they will have to buy 2 + 1 or 3+1. If we look across the country, more foreign exchange inflows will be obtained during this period when sales to foreigners increase. I think it has a positive effect from all points of view. It’s good for all of us,” he said.


According to TURKSTAT data, the highest period of sales to foreigners was achieved with 5.7% in November 2018, after the property price was reduced from $1 million to $250,000, while the record of home sales to foreigners was announced as 7 thousand 841 in December 2021. 293 thousand 271 of the 12 million 263 thousand 850 houses sold in Turkey in the last 10 years after the law, which was enacted in 2012 and according to the revision in 2018, were sold to foreigners, bringing the total share of foreigners in sales to 2.5%. Istanbul, Antalya and Ankara are among the most popular cities.


> PORTUGAL: Foreigners who buy a house worth at least 500,000 euros in Portugal have the right to travel without a visa. Again, a residence permit is granted to foreigners who establish a business in the country that employs at least 10 people. To apply for permanent residency, one must spend five years in the country.

> MALTA: To apply for Maltese citizenship, there is a minimum investment requirement of €800,000 and you must donate at least €650,000 to the Maltese government. Or you must buy a house in Malta worth at least 350,000 euros. Alternatively, you can rent a residence for five years.

> CANADIAN: In order to obtain a residence permit and citizenship in Canada, you must invest at a certain level. For this, a business investment of $400,000 or a bank account of $800,000 is enough for you to obtain citizenship.

> United States: There are two ways to obtain permanent residency in US government-designated areas; Invest 500 thousand dollars and provide employment for at least 10 people with this investment. The other is to create a company with a capital of 1 million dollars.

> GREECE: When you buy a house worth 250,000 euros or more in Greece, you can get a residence permit for five years. The program, which obtains a five-year residence permit by buying real estate in Greece, is called the “Golden Visa”.

> SPAIN: For citizenship in Spain, you must purchase a property worth at least 500,000 euros. After that, if you have been legally residing in the country for at least 10 years, you can become a naturalized citizen.

> GERMANY: There is only one condition for obtaining the right of residence and then citizenship in Germany; Create a company with an investment of 250,000 euros and provide jobs for German citizens in this company.

A fifth of foreign investment in housing is for citizenship
It was determined that 22.1% of the 68,168 real estate investments made in Turkey last year by foreigners in housing and all other types of real estate were for the acquisition of citizenship.

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