According to the Turkish Statistical Institute (TurkStat), Iranians bought a total of 3808 housing units in Turkey during the first eight months of the year. Compared to the same period in 2019, the current data implies a straight 20% increase in Turkish real estate sales.
In light of the sharp decline of the local currency Rial, Iranians are rushing to purchase real estate in Turkey primarily to safely invest their funds in a foreign land. As they find ways around Iran’s rigid money-transfer regulations and the US embargoes, the spike in home purchase has further propelled Iranians to become one of the largest real estate buyers in Turkey, just ahead of Iraqis.
Real estate and tourism
While a remarkable portion of foreign direct investment has been poured into the real estate sector, there has also been a laudable surge in capital growth in recent years. The tourism sector and real estate industry are the two main supplementing benefactors that shape a major portion of the Turkish economy.
Despite the coronavirus outbreak and post-partial-lockdown, Irani citizens recommenced visiting Turkey and grabbed the available profitable investment opportunities.
Furthermore, hotel occupancy in many Turkish cities displayed significantly elevated records and Iranians were one of the top-listers. As they prefer visiting Turkey over other nations in the world, the country has relaxed its foreign regulations to promote tourism and commercial expansions.
The eastern provinces of Turkey are the most popular locations for Irani tourists and the reported hotel occupancy rated stood close to 90%. Owing to the mesmerizing culture and traditions, property renting is a well-received lifeline for local traders, shops, restaurants, and homeowners.
Why Iranians purchase real estate in Turkey?
Iranian citizens have traditionally wanted to emigrate, especially to the Mediterranean countries, the EU, the United States, or Canada. However, the ongoing tensions associated with military and political crises in Syria led to alternation in policies and laws implemented against immigrants. This stirred Iranians to turn their attention to Turkey, one of the most developed countries in the world.
Turkey is located close to the Iranian border. It is a beautiful transcontinental country that offers easy access to European and Asian sides. Turkey is stacked with stunning historical monuments, palaces, and natural wonders that make it an ideal holiday destination for Iranians and tourists from all over the world. The fact that Turkey and Iran are both Muslim countries, similar beliefs, ideologies, and cultures are deep-rooted in its citizens. Thanks to the lenient regulations, easy investment process, convenient holiday options, and progressive economy, Iran has exuded commendable tourism and investment interests in Turkey past five years. Research indicates that nearly six million tourists from Iran will be visiting the country by the end of 2020 and this figure is expected to increase in the near future.
The main reasons for Iranians to buy property in Turkey include:
- Real estate prices in Turkey are comparatively lower as compared to European countries.
- The decision to reduce taxes concerning Turkish real estate positively stimulates Iranians to own a property in Turkey. The most important tax exemption for foreign property buyers is the provision of VAT-free real estate purchase.
- Real estate investors who buy a property below $250K get a residence permit that can be renewed every year. A real estate residence permit is granted to the buyer, spouse, and kids below the age of 18 years.
- Real estate investment in Turkey furnishes profitable and remunerative capital gains and returns. Based on the rapid economic growth, urban development, and fast-paced tourism sector, the demand for holiday homes and rentals are preeminently high in Turkish cities.
Turkish citizenship by investment benefits for Iranian citizens
Over the last three years, Turkey has witnessed a significant surge in the number of expats from Iran seeking to purchase real estate or establish businesses in the country. The recent amendments in the ‘Turkish citizenship by investment’ program lowered the capital amount from $1 million to $250K, attracting a multitude of Irani residents to acquire Turkish citizenship.
While being a Turkish citizen is stacked with financially rewarding opportunities, here are some of the merits of owning a Turkish passport:
- The Turkish passport is ranked 38th in the world and the holder is granted visa-free access to 72 countries.
- The Turkish passport and citizenship have a fast-track process and are delivered within 90 days.
- Turkey has amicable relations with the European Union. Turkish citizens will soon be granted the right to enter Europe without a visa.
- The Turkish government provides free access to education and university payment plans to the citizens.
- The ongoing reforms and economic importance as encouraged by the Turkish government are distinctive and plausible for the country’s financial development.
- The Turkish passport is valid for 10 years and can be renewed later.
- The government offers dual citizenship benefits to the citizens and Turkish passport holders.
- The Turkish passport holders have all the voting rights and can participate in all types of elections in Turkey.
Purchasing real estate in Turkey with Extra Property
When it comes to making safe and high-yielding investments, Iranians are ranked first followed by Iraqis in purchasing properties in Turkey and applying for the ‘Turkish citizenship by investment’ program. Due to the progressive economic growth and upscaled government development schemes for foreign investors, Iranians have displayed an increasing interest in buying real estate in Turkey.
At Extra Property, we have assisted hundreds of Iranian property buyers and investors from other countries to purchase lucrative business spaces and apartments in Turkey. We ensure that the entire investment and citizenship processes are hassle-free and are carried out seamlessly.