Russian citizens emerged as the leading foreign buyers of real estate in Türkiye, according to data from the Turkish statistics agency TUIK. In July alone, a total of 109,000 apartments were sold in the country, marking a 16.7% increase compared to the same month last year. Among these purchases, 2,801 properties were acquired by foreigners.
Out of all the foreigners buying property in Türkiye, Russians took the top spot by purchasing 772 apartments in July. This displaced Iranian and Iraqi nationals, who ranked second and third respectively. The most popular destinations for foreign buyers were Antalya, Istanbul, and Mersin.
This surge in Russian property purchases follows a trend highlighted by earlier data, which revealed that Russian nationals had tripled their home acquisitions in Türkiye in 2022. These increased investments were attributed to sanctions that prompted Russians to divert their funds away from Western countries and toward Türkiye.
However, the real estate market in Türkiye has experienced significant inflationary pressures, with prices more than doubling in nominal terms since May of this year, as reported by the country’s central bank. In response, the Turkish authorities have committed to addressing skyrocketing rental prices and are reportedly considering implementing a tax on owners of vacant apartments.
It has been suggested that the growing number of Russian homeowners in Türkiye has contributed to a decline in the demand for hotels. Many tourists now opt to purchase their own apartments rather than rent expensive short-term accommodations, according to the country’s tourism minister, Mehmet Nuri Ersoy.
The rise in Russian investments in Türkiye has significant implications for the country’s economy and finance sectors. It signals a shift in financial focus, with Russians increasingly seeking opportunities in Türkiye over other destinations. This trend has the potential to impact various industries, including real estate, tourism, and related service sectors.
In conclusion, the latest data from Türkiye’s statistics agency indicates that Russian citizens have become the leading foreign buyers of property in the country. The surge in Russian investments follows a broader trend of Russians shifting their financial interests away from Western countries. This development has significant implications for various sectors of Türkiye’s economy and underscores the country’s growing appeal as an investment destination.