Boom and Bust: Foreign Investment in Turkiye’s Housing Market (2016–2024)

Foreign house sales in Turkiye rose sharply from 24,700 units (TTM) in June 2018 to 47,400 units (TTM) by February 2020, driven by factors such as regional instability and Turkiye's relatively low property prices. After a temporary decline during the COVID-19 pandemic, sales rebounded strongly, reaching a peak of 74,300 units (TTM) in June 2022. However, since July 2022, sales have steadily declined, falling to 23,800 units (TTM) by October 2024.

Key drivers of foreign investment included political instability in Iraq, economic uncertainty in Iran, and the Ukraine war. Turkiye’s comparatively affordable housing market and government incentives—such as granting citizenship through property investment—attracted over $50 billion in foreign investments. However, skyrocketing property prices (doubling in USD terms) and Turkiye’s high inflation contributed to the sharp downturn in foreign purchases.

From 2018 to October 2024, Russians were the largest foreign buyers, purchasing 44,500 units (14% of total), followed by Iranians with 40,500 units (13%) and Iraqis with 40,300 units (13%). While government policies boosted foreign investment, they also exacerbated housing price inflation, creating challenges for the domestic market.