COVID-19 IMPACTS ON TURKEY REAL ESTATE
In a year unlike all years, the biggest challenge was resilience at all levels and sectors, as Corona defeated many areas. Despite this, it could not weaken many sectors that resisted and demonstrated success in the height of the spread of the virus.
The real estate sector is one of the sectors that overcame the new conditions created by Corona, and here we special mention the real estate sector in Turkey, which reaped good numbers that surprised everyone.
In 2020, many foreign investors and residents purchased many real estates in Turkey despite many obstacles, including travel restrictions.
- More than 247 thousand foreigners bought real estate in Turkey by 2020
- Real estate sales in Turkey 2020 by nationalities and regions
- Electronic tapu ... payment for real estate sales in Turkey during the time of Corona
In today's article, we will shed light on the numbers achieved by Turkey until 2020 in the real estate sector, and also summarize the percentage of sales to foreigners during the year of Corona; we will talk about decisions that contributed to saving the industry and measures that have had an influential role in doubling sales over the past years.
We will focus on the cities that have received the most demand for ownership by foreigners and the most popular nationality for buying real estate in Turkey, and real estate investment in Turkey.
More than 247 thousand foreigners bought real estate in Turkey by 2020
Two hundred forty-seven thousand one hundred fifty-nine foreigners bought real estate in Turkey by the end of 2020, including 13,805 people who owned apartments for sale in Turkey intending to obtain Turkish citizenship.
Real estate in Turkey witnessed a remarkable increase in sales for the benefit of foreigners between 2013 and 2020. It reached more than 220 thousand real estates.
The Turkish government made some decisions to help investors applying to the Turkish citizenship program. One of the most critical choices is reducing real estate investment to 250 thousand US dollars to obtain turkish passport.
In general, Turkey peaked real estate sales during the year 2019, achieving a jump of 45,483 properties, compared to 12,181 properties in 2013.
As for the past year, which was an exceptional year in the life of all humanity, the number of real estate sales in Turkey to foreigners reached 40,812 properties.
Real estate sales in Turkey 2020 by nationalities and regions
Real estate sales in Turkey to foreigners by nationalities
During the last eight years, Iraq was at the top of the list of countries whose citizens bought real estate in Turkey. The reason for choosing Turkey is related to culture and security.
During the last eight years, the Iraqis ranked first among the most foreign nationalities to buy real estate in Turkey, with 29,349 properties, followed by the Russians who bought 18,918 properties. The Iranians came in third place with 18,154 properties.
In the following graph, we will show you the ten most foreign nationalities who have come to buy real estate in Turkey during the last ten years.
Figure1: Top 10 Nationalities buying property in turkey 2020
Real estate sales in Turkey to foreigners by region
Istanbul is at the top of the Turkish state that sells real estate to foreigners, as the number of properties sold to foreigners in Istanbul reached 87,37 by the end of 2020.
Antalya came second after Istanbul, with sales of 60,336 properties, while Bursa came in third place.
Foreigners have unevenly bought real estate in Turkey in its various cities over the past ten years.
Figure 2: Top Turkish Cities Receiving Foreign Investors
E-tapu: Payment for Real Estate Sales in Turkey During Corona
The real estate sector was one of the most active sectors in the Turkish economy before the pandemic. With the emergence of the Turkey epidemic, the Turkish authorities introduced a new system to facilitate work in the real estate field in Turkey.
Also, they opened branches to purchase real estate through various Turkish diplomatic representations in the most possessing countries in Turkey, such as Russia, Britain, Germany, and Iraq.
The Directorate of the Land Registry, the most necessary directorates to complete Turkey's ownership procedures, has reactivated the Web Tapu service.
The electronic tabu system is one of the most important strategies that Turkey has reactivated during the time of Corona, in a major step for the Turkish government, which has made all efforts to facilitate all transactions of real estate ownership in Turkey, especially in the departments and directorates of the title deed.
As soon as it was relaunched, the electronic taboo system was highly popular with those deprived of movement by Corona or whose travel was restricted.
Since its inception in mid-2018, the electronic tapu system has witnessed a steady increase in its users day after day.
Web Tapu: Online Real Estate Sales to Foreigners
Like what we mentioned above in the paragraph, with the spread of the Corona pandemic, many economic and social life paths have changed in line with the precautionary measures from this dangerous epidemic.
Here, the remote tapu system played an important role in facilitating buying and selling real estate in Turkey by transferring transactions from direct purchase to the Internet available to everyone everywhere and anytime.
The quarantine decisions and the necessity to appear and adhere to the health prevention measures against the pandemic have contributed remarkably to the investors ’tendency to use the Tabu transactions system in general.
The number of electronic tapu users in transactions of buying and selling real estate in Turkey among foreigners and even Turks has quadrupled during the time of Corona.
The statistical figures issued by the General Directorate of Land Registry and Real Estate Survey indicate that the number of real estate purchase transactions in Turkey through the electronic taboo system reached one million and 350 thousand transactions during the period between March 2020 and until the end of the last year 2020, compared to only 300 thousand transactions during the same period of the year before 2019.
In general, the total number of all types of real estate transactions that were processed through the electronic taboo system, including taking electronic appointments during 2020, specifically starting from March, was estimated at two million 203 thousand and 500 transactions.