Dip in foreign sales in 2016 fails to dampen Turkish market as a whole

Turkey recorded more property sales in 2016 than in 2015, according to the latest figures from the Turkish Statistical Institute, signalling an ongoing strength in the market.

Looking closer, house sales in Turkey increased four per cent year-on-year in 2016, reaching 1.34 million. Unsurprisingly, Istanbul attracted the highest share of sales, namely 232,428 transactions which accounted for 17.3 per cent of the market. Next was Ankara with a 10.8 per cent share, thanks to its 144,570 sales, followed by Izmir with a 6.1 per cent share and 81,316 sales.

House sales to foreigners alone numbered 18,189 in 2016, representing by 20.3 per cent fall compared to the previous year. Istanbul was the most popular province with international investors, attracting 5,811 sales last year. This was followed by Antalya province, which recorded 4,352 foreign sales. After Antalya were Bursa with 1,318 sales and Aydin with 871 sales. Antalya, with a busy coastal city of the same name, is home to the popular second home resorts of Alanya, Belek, Side and Kalkan.

The foreign nation that bought the most Turkish property in 2016 were Iraqis, who accounted for 3,036 transactions. Saudi Arabians purchased the second highest number of Turkish homes (1,886), followed by Kuwaitis (1,744), Russians (1,224) and Afghans (1,205).

Real estate mortgages made up 34.4 percent of all real estate sales in Turkey in 2016. Currently, the rate for a 120-month mortgage is between 0.92 per cent and 1.15 per cent in Turkey, following the decision by the Turkish Government and Ziraat Bank at the end of August 2016 to reduce rates, as part of an initiative to drive the property market in Turkey.