Housing prices have risen, investors turn abroad

In Turkey, which ranks as the country with the highest increase in housing prices globally according to the Global House Price Index, access to the housing market is becoming increasingly difficult. In many cities and districts, especially in Istanbul, house and apartment prices are now competing with those in many cities abroad. This situation is directing investors toward foreign countries, primarily the United Kingdom.

The global housing market, which began to rise during the COVID-19 pandemic that affected the entire world, continues its growth due to various reasons. The global real estate market, which was 3 billion 704 million dollars in 2022, is expected to reach approximately 6 billion 219 million dollars by 2032 with a growth rate of 5.32 percent. Turkey stands out as a country where both new and experienced investors struggle to cope with inflation, as housing prices in the country have increased sevenfold in the last 6 years.

The fact that housing prices have become competitive with real estate abroad has also shifted the route of investors beyond the borders. There is also an increase in the number of Turkish citizens purchasing property from abroad. According to the “Statistics on Acquiring Real Estate from Abroad” report published by TUIK, it is observed that while Turkish citizens purchased 35 thousand 184 housing units from abroad in 2020, this number reached 41 thousand 789 units in 2021. The United Kingdom has recently become a frequent destination for those who want to invest in real estate. According to the released data, the number of housing units owned by foreigners in the UK is 280 thousand. As of the end of 2023, this figure is expected to reach 300 thousand.

NEW ROUTE: UNITED KINGDOM

According to an analysis conducted by a London-based research company, a total of 3,118 property sales took place in London in the third quarter of 2023. 23% of the sales belong to individual foreign investors.

News Source: 12punto