Last Updated on 14/09/2023
Russian house sales in Turkey increased by 199% in just 3 quarters
Russians have made significant investments in Turkish real estate over the past five months since the beginning of the Russian invasion of Ukraine. Demand increased significantly and house sales in Turkey made to Russians tripled compared to last year’s data. In this article, we will be treating this aspect closer to determine the reasons and consequences of the important flow of Russian investment in Turkey.
Foreign house sales in Turkey between January-September 2022
The total number of house sales in Turkey made to foreigners nationwide between January and September climbed by 32.5% on an annual basis, reaching 49,644, according to figures from the Turkish Statistical Institute.
Istanbul sold 19,594 housing units over the first nine months of the year, making it the top province with a share of 40% About 40 of home sales in Turkey made to foreigners.
Antalya and the capital Ankara followed Istanbul with 14,656, and 2,295 units respectively. This data was revealed in September’s house sales statistics in Turkey.
Russian house sales in Turkey in January-September 2022
Since March 2022, we have witnessed a rapid increase in the number of house sales in Turkey made to both Russian and Ukrainian nationals. In fact, Russian nationals bought 9,311 properties in the period January-September 2022 after it was only 3155 units in the same period in 2021. Thus we talk about an increase of 199% in only 9 months. Similarly, Ukrainian home purchases climbed also by 125% this year. Experts consider this remarkable increase as one of the Russia-Ukraine conflict impacts.
Real estate investment in Turkey, a financial haven for Russians
A suitable way to escape western sanctions
Western sanctions against Russian oligarchs started to loosen after Russia invaded Ukraine. Yet, Ankara didn’t enforce the sanctions against Moscow while relying on Russia’s energy needs. Trade and gas flow continue to occur through the two pipelines, TurkStream and Blue Stream, that connect to Russia. Besides, Turkey’s foreign minister declared said that his nation welcomes Russian oligarchs so long as their commercial endeavors adhere to international law. Moreover, Turkish Airlines flights from Russia kept operative which facilitated the exit of Russian oligarchs and helped increase Russian investment in Turkey.
Turkish Citizenship by investment to start a new life
The primary incentive for Russian nationals to invest in Turkey is the Turkish citizenship by investment program. In fact, by investing at least $400,000 in real estate or foreign the acquisition of the Turkish passport is eligible within 3 to 4 months. As a result, it appears to be a desirable chance for Russian oligarchs who want to start again and shield themselves from political difficulties.
Just to remind, this investment scheme has been popular since its application in 2018, especially among Middle Eastern investors. However, the current Russia-Ukraine political situation has included Russians as the top real estate investors in Turkey which contributed to increase remarkably the number in house sales in Turkey.
Antalya the “little Russia”
Russians have always favored traveling to Turkey, primarily for leisure. Many Russian tourists visit Antalya each year where they were successful in establishing their community. Therefore, Antalya Province is often referred to as the “Little Russia of Turkey” in modern times. In fact, according to the Turkish Statistics Institute, there were 18,905 Russian inhabitants in 2021.
As a result, Russians in Turkey, particularly in Antalya, do not feel alienated and many of them view the country as a second home.
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