Karakoy district of central Istanbul. Source of the photo: arabnews.com

According to the Turkish Statistical Institute, Iranians bought 3168 homes in Turkey during the first seven months of 2020, becoming the biggest investor in real estate in the neighboring country.

Iraqis with 2747 houses purchased are in the second place, followed by Russians with 1081, Afghans with 955, Germans with 559, and Azerbaijanis with 546, according to Turkstat.gov.tr.

Foreigners bought a total of 17.185 homes in Turkey over the seven-month period, registering a 29.52% drop compared with the similar period of last year. This value is attributed to the coronavirus pandemic.

In 2019, Iranians were the second biggest foreign buyers of real estate in Turkey with 5423 homes purchased.

Iraqis with 7596 deals were the biggest foreign buyers of homes in Turkey last year.

Iranians were followed by Russians with 2893 purchases, Afghans with 2191, and Yemenis with 1564.

Foreigners bought a total of 45.483 homes in Turkey in 2019, registering a 14.7% rise compared with 2018.

According to the state-run Arman daily, in the period 2011- 2019, $98.4 billion of capital has left the country. Saeed LEYLAZ, an expert affiliated with former President Akbar Hashemi RAFSANJANI’s “Kargozaran” group said: “From the years 2014-2015, the outflow of capital from Iran began and nobody looked at them. I guess within the past 4-5 years, we have had more than $100 billion capital escape from Iran”.

According to Shargh daily: “During the first seven months of this year, despite the outbreak of the coronavirus, Iranians have so far gained the first rank in buying a property in Turkey by buying 3168 properties, and in less than four years, they have established 2721 companies in Turkey and bought 13.355 properties in this country.

Turkey’s justifying laws on attracting foreign investment has increased Turkey’s interest in attracting Iranian investment,” said a member of the Board of Tabriz Chamber of Commerce.

In relation to Turkey, the issue is the escape of capital from the country and not only the outflow of capital from the country for real estate. With the conditions created by Iran’s neighboring and rival countries to attract capital and facilitate foreign investment laws, the attractiveness of capital outflow from the country increases”, said a government expert.

These facilities create stability for investors who can overcome the fluctuations of the domestic market in the long run. The main motivation seems to be the economy, which prefers to invest in a less risky country due to the risks that may be felt in their investments inside the country”.

Turkey created in 2016 the “Turkuaz Kart” practice similar to the US Green Card application that permits to obtain Turkish citizenship by investing in the country as of 2017.

In September 2018, the lowering of the minimum investment limit in the Citizenship Through Investment Program to $250.000 in real-estate investments led to an increase in foreigners’ interest in the country.

Reza KAMI, a member of Tabriz Chamber of Commerce, said: “Turkey’s policy of granting the right to work and residence to foreigners via investment, which allows Iranians to enter the neighboring country without a visa, and its positive attitude toward Iranians have encouraged Iranians to make more investment there compared with the citizens of the UAE, Cyprus, and Georgia”.

The foreign commerce sector of Turkey has also been attractive for Iranians over the past couple of years. By registering their businesses there, Iranian investors have secured an acceptable status in Turkey.

The Turquoise Card system creates long-term stability for investors. They can leave behind the uncertainties of Iran’s local market and invest in a country with lower risks.

Referring to financial transactions with Turkey, Ali FARNAM an expert in housing and urban development said: “Turkey gives Iranians the opportunity to pay property expenses in rial. Interestingly, home prices in Turkey are lower than in Iran. The country’s transportation system, its tourist attractions, and the ease of traveling from Turkey to other countries add to the appeal of investment there”.

This article was edited using the data from the Financialtribune.com, En.eghtesadonline.com, Tzccim.ir, Realestatenewsturkey.com, and Arabnews.com

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