If you have been thinking about investing in apartments in Oba, Mahmutlar, Istanbul, or any other Turkish city – the time has come. Today, simply ideal conditions are being formed for foreigners who aimed for investment in Turkey real estate market!
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On Thursday, January 6, the Turkish lira fell to 13,89 against the dollar (up 1,7% overnight), losing about 22% over the past nine trading sessions due to continued investor concern about inflation rising to a 19-year high after an unorthodox decline in interest rates.
Relatively recently (December 20, 2021), the Turkish currency completely fell to a record low of 18,4 lira per dollar, subsequently partially regaining positions.
The exchange rate of the national currency of the Republic of Turkey against the dollar as a whole fell by 44% in 2021 (36,1% in December).
For the lira, 2021 has been the worst year since President Recep Tayyip Erdogan’s party came to power two decades earlier. In parallel, there was a jump in annual inflation to 36,1%, and dollarization continued to grow, which clearly indicates the need to revise the political course.
Economists are predicting inflation to pick up further in 2022, and a series of large, manageable price hikes, including utility bills, and wages have illustrated inflationary pressures. Markets no longer believe President Erdogan’s promises that the worst of the economic turmoil in the country of 84 million is over.
In such circumstances, investment in Turkey real estate market becomes extremely profitable for foreigners paying with the use of “strong” currencies. But you need to hurry.
The fall won’t last forever. A quick and fairly significant rebound is possible. Local authorities have announced that they have taken decisive steps in this direction.
Investor Passports When Buying Property in Turkey
The rules for obtaining Turkish economic citizenship by foreigners have changed.
- According to the decree published in the official government gazette on Thursday, January 6, 2022, from now on, applicants have the right to fulfill financial obligations using only foreign currency (previously, payment in the lira was also allowed).
- Moreover, foreign currency received from the sale of real estate to foreigners under the economic citizenship scheme is subject to sale to the Central Bank through the local commercial bank servicing the transaction and converting it into Turkish lira.
The currency placed by foreigners in local commercial banks / invested in securities as a basis for obtaining investment citizenship is additionally subject to conversion into lira. The consequences for those who choose these options will be quite serious due to the risk of a fall in the dollar equivalent of the amount deposited in lira/face value of the security (due to the likelihood of further weakening of the lira). On the other hand, investors will receive increased interest payments on deposits / increased dividends on securities.
Real Estate in Turkey
Given the numerous incentives, a significant influx of motivated buyers into the market from abroad is quite natural. No less natural is the growth in the number of scammers / unscrupulous agents seeking to make money on ignorant foreigners.
Are you planning to profitably buy commercial or residential real estate in Turkey, simultaneously applying for citizenship by investment in turkey real estate? Do not want to lose money, precious time, and nerve cells? Trusted experts with an impeccable reputation from Turk.Estate will help you, go over to the website and check out recent offers.