Foreign home buyers become a central issue in Turkish presidential election
Share Now on:
Foreign home buyers become a central issue in Turkish presidential election
The southern Mediterranean city of Antalya is part of the so-called Turkish Riviera. Tourists flock to its turquoise coast season after season.
More recently, after Russia’s invasion of Ukraine a year ago, so have Russians and Ukrainians looking to ride out the war. The problem is, that’s sent house prices surging and added to an already acute cost-of-living crisis there.
Nazli Erogl and her fiance sell a certain vision to Antalya tourists with their motorcycle rental business called Zero to 100: A ride down the coast with the breeze blowing through their hair. With travelers coming back, business is strong. The couple figured now would be a good time to buy a home. But they were wrong.
“Prices went toward Mars,” Erogl said. “There isn’t much to say. It started to increase exponentially. That’s why we gave up. We said we would expand our business instead of buying a house.“
Home prices are high in part because of inflation, which neared triple digits last year. The increase is also due to the region’s popularity with foreign buyers.
While home sales to foreigners declined over the course of the year-ended March, in Antalya they jumped 21%. Russians, relocating after the invasion of Ukraine, were by far the biggest buyers. That squeezes local buyers like Erogl.
“They want ridiculous prices for houses that are uninhabitable. We were exhausted. Instead, we found a house to rent,” Erogl said.
Still, even rental prices have become unaffordable for some. Talha Berk, a 23-year-old, searched for two years before deciding to stay at home with his mom. He hopes to buy when prices cool.
“If I go in a disciplined way in my career, it might be possible in three years, maybe five years with bank loans,” he said.
Kemal Kilicdaroglu — who is challenging President Recep Tayyip Erdogan for control of the country — has vowed to ban all foreign home sales for five years, or until prices fall.
For Remax real-estate consultant Asli Kortel, this hot market is great. She and her team celebrate each sale by ringing a brass bell.
“Antalya is a place that a lot of people want to come to. They have many nice job opportunities here. Real estate demand is getting higher and higher every day,” she said.
In Turkey, investment properties can also be a vehicle to citizenship with a minimum investment of $400,000. That rate has almost doubled from a year ago, which Kortel said has detracted some foreign buyers. But she doesn’t oppose more restrictions.
“Of course, it will cause a decrease in sales to foreigners,” Kortel said. “This is absolutely undeniable. But it will be a good situation. With the real estate prices coming to the right prices for our country, our citizens will be able to own a house in their own country more easily.”
Erogl though, doesn’t want to see foreigners completely barred from the market.
“Because we also earn money from tourism and foreign visitors in Antalya. A regulation can be brought that will not disrupt local businesses,” she said.
If Kilicdaroglu’s six-party coalition doesn’t win Sunday’s election, it’s not clear if President Erdogan would impose further restrictions on international property buyers.
There’s a lot happening in the world. Through it all, Marketplace is here for you.
You rely on Marketplace to break down the world’s events and tell you how it affects you in a fact-based, approachable way. We rely on your financial support to keep making that possible.
Your donation today powers the independent journalism that you rely on. For just $5/month, you can help sustain Marketplace so we can keep reporting on the things that matter to you.
