Striking Change in Foreign Investors' Housing Preferences

The period from January to October 2023 significantly changed the preferences of foreign investors regarding housing purchases in Turkey. Statistics show that the number of property purchases has decreased in many popular locations such as Istanbul, Antalya, Mersin, Sakarya, Yalova, Aydın, and Bursa. Meanwhile, Ankara and Muğla have attracted the interest of foreign investors, showcasing a 16.2% increase in housing sales.

According to TÜİK data, a total of 1 million 293 thousand 33 houses were sold throughout Turkey during the January-October period. This figure was recorded as only 1 million 112 thousand 374 in the same period of 2022. In other words, housing sales among foreign buyers showed a significant increase compared to previous years; this contributed to the overall increase in total housing sales.

The decline in Istanbul's housing market can be attributed to various factors. High housing prices and rising living costs may have redirected foreign buyers' preferences towards different cities. On the other hand, the rise of Ankara and Muğla seems closely related to more affordable prices and the quality of living conditions in these areas.

Particularly, Ankara is on the radar of both domestic and foreign investors with the increase in new projects and housing developments. Real estate investments in the capital continue to attract investor interest due to the ability to offer spacious properties at more affordable prices. Muğla, on the other hand, stands out with its tourism appeal and ranks high on the foreign buyers' preference list for vacation homes.

When considering all these data, it is clear that the dynamics of Turkey's housing market are variable and that analyses catering to investors' needs must be continually updated. Turkey presents new opportunities for foreign buyers every day, and it may pave a new path for its housing market in the upcoming periods with these shifts.