Turkey has fast become the destination of choice for HNW investment and the nation’s citizenship by investment program has fast become the most popular in the world. Research by Astons, the international experts on real estate, residency, and citizenship through investment, has found this is causing Turkish property prices to boom, with values jumping by as much as 57% on an annual basis in some areas.
Turkish citizenship via investment
In June of last year, cumulative naturalization under Turkey’s citizenship by investment program totalled just 981 main applicants and 2,766 dependents. As of June 2020, this total has increased by 819% to 9,011 main applicants and 25,411 dependents.
Turkey offers investors speed which is a vital commodity in today’s world, providing a fast route to obtain alternative citizenship in just two months.
It also offers variety when investing and at a relatively low level compared to other programs, with a requirement of $500,000 via a fixed-asset investment confirmed by the Ministry of Industry and Technology, deposited in a Turkish bank account for three years, or invested in Government bonds with the potential of receiving interest.
Failing that you can set up a company within the nation that creates jobs for at least 50 Turkish employees.
But Turkey is about to get even more desirable from an investment standpoint with the Turkish Government continuing on their mission to secure EU status, but first setting their sights on 90-day visa-free access to the Schengen Zone. Having fulfilled the obligations set in 2016 to do so, it seems that the country is now within grasp of achieving this.
Managing Director of Astons, Arthur Sarkisian, commented: “The ability to offer visa-free travel throughout the Schengen Zone will make the Turkish program for citizenship through investment all the more attractive to investors and we expect Turkey to remain at the forefront where incoming investment is concerned as a result.
One area that is particularly attractive is the Turkish real estate sector as many investors realise that a move closer to EU status is only going to help boost a market that has already performed well in recent years. With a minimum investment of $250,000, it also offers a more cost-effective route to obtaining citizenship, as well as one of the most affordable when compared to other programs.”
Turkish real estate market
In fact, the Turkish real estate market has exploded over the last year alone, with house prices climbing 36% and averaging 15% over the last three years.
Antalya has seen the largest growth, with real estate up 57% on an annual basis, while Izmir, Gaziantep and Diyarbakir have also seen a notable jump of 39%. Although Bursa has seen the lowest annual increase, real estate values have still climbed 24% annually.
Why is Turkish real estate so attractive to investors? Well, they can qualify for citizenship by investing just $250,000 into the Turkish market either via the residential or commercial markets. What’s more, the property can be rented to generate income and can be sold after just three years, with investors also able to acquire several properties at once.
Arthur Sarkisian continued: “Many investors prefer the real estate route as it gives them a tangible asset and one that either serves a personal purpose as their home away from home or a commercial one that generates income to provide a return on their investment.
We expect the Turkish real estate option to grow in popularity due to the low investment requirements and the buoyant market conditions seen in recent years, conditions that are only going to improve with further investment and the possibility of visa-free travel.”
Turkish residential property (all types and rooms)
- Antalya
AveHP Turkish Lira ₺ – Feb 2021: ₺456,500
Average change last 3 years: 28%
Change 2020 to 2021: 57% - Izmir
AveHP Turkish Lira ₺ – Feb 2021: ₺499,125
Average change last 3 years: 17%
Change 2020 to 2021: 39% - Gaziantep
AveHP Turkish Lira ₺ – Feb 2021: ₺429,760
Average change last 3 years: 22%
Change 2020 to 2021: 39% - Diyarbakir
AveHP Turkish Lira ₺ – Feb 2021: ₺336,600
Average change last 3 years: 27%
Change 2020 to 2021: 39% - Adana
AveHP Turkish Lira ₺ – Feb 2021: ₺397,044
Average change last 3 years: 15%
Change 2020 to 2021: 37% - Konya
AveHP Turkish Lira ₺ – Feb 2021: ₺325,280
Average change last 3 years: 15%
Change 2020 to 2021: 30% - Kayseri
AveHP Turkish Lira ₺ – Feb 2021: ₺323,730
Average change last 3 years: 18%
Change 2020 to 2021: 29% - Ankara
AveHP Turkish Lira ₺ – Feb 2021: ₺304,720
Average change last 3 years: 13%
Change 2020 to 2021: 29% - Istanbul
AveHP Turkish Lira ₺ – Feb 2021: ₺507,642
Average change last 3 years: 6%
Change 2020 to 2021: 29% - Bursa
AveHP Turkish Lira ₺ – Feb 2021: ₺352,128
Average change last 3 years: 12%
Change 2020 to 2021: 28%
Turkey
AveHP Turkish Lira ₺ – Feb 2021: ₺392,860
Average change last 3 years: 15%
Change 2020 to 2021: 36%
Cumulative naturalizations under the Turkey CIP
- To June 2019
Number of naturalizations (main applicants): 981
Number of naturalizations (dependents): 25,411
Total: 3,747 - To June 2020
Number of naturalizations (main applicants): 9,011
Number of naturalizations (dependents): 25,411
Total: 34,422
Change: 819%
Source: Ecoworld Magazine
