Foreign Home Sales in Turkey Fall to Nine-Year Low as Investor Interest Weakens

New data released by the Turkish Statistical Institute (TurkStat) for 2025 shows a continued decline in residential property sales to foreign buyers, marking a sharp reversal from the boom years that followed the introduction of Turkey’s Reciprocity Law. Despite Turkey’s long-standing appeal to international real estate investors, foreign home purchases have now been falling for three consecutive years, reaching their lowest level in nearly a decade.

The Reciprocity Law, which came into force in mid-2012 and allowed foreign nationals to purchase property in Turkey on a reciprocal basis, initially triggered a surge in demand. Foreign home sales peaked in 2022 at 67,490 units, but the momentum has since faded significantly.

Foreign Home Sales Drop Sharply in 2025

According to TurkStat figures, home sales to foreigners declined by 9.4% year-on-year in 2025, falling to 21,534 units. This represents the lowest annual figure recorded in the past nine years.

Monthly data also highlights uneven demand throughout the year. The highest number of foreign home purchases was recorded in December, with 2,541 units sold, while April saw the weakest performance, with just 1,440 homes sold to international buyers.

The downturn is also evident in market share. In 2025, sales to foreigners accounted for only 1.3% of total home sales in Turkey, the lowest ratio since the Reciprocity Law was fully implemented in 2013. By comparison, the share had reached a peak of 4.5% in 2022, underlining the scale of the slowdown.

Russian Buyers Lead, Istanbul Remains Top Destination

Despite the overall decline, certain nationalities continue to dominate foreign property purchases in Turkey. Russian citizens ranked first, purchasing 3,649 homes in 2025. They were followed by Iranians (1,878 units), Ukrainians (1,541), Germans (1,376), and Iraqis (1,292).

Buyers from Azerbaijan, Kazakhstan, China, Saudi Arabia, and Afghanistan also featured among the top ten foreign investor groups.

In terms of location, Istanbul remained the most popular city for foreign buyers, with 7,989 homes sold, accounting for 37% of all foreign purchases nationwide. Istanbul was followed by Antalya (7,118 units), Mersin (1,800), Ankara (769), and Yalova (461). Other cities making the top ten included Bursa, Izmir, Mugla, Sakarya, and Trabzon.

Rising Prices and Slower Procedures Curb Demand

Commenting on the trend, Bayram Tekçe, Chairman of the Board of the Association of Real Estate Service Exporters (GIGDER), said the decline in foreign home sales over the past three years is largely driven by rapid price increases and slower processing of residency permits.

Tekçe noted that in some locations, the payback period for housing investments has stretched to 30 years or more, significantly reducing Turkey’s attractiveness compared with competing markets.

“Because we have lost our price advantage, international real estate investors are turning to alternative countries such as Dubai, Spain, and Greece, where investment returns are achieved in a shorter time,” he said.

He also pointed to insufficient overseas promotion, the lack of investor-friendly visa programs, and delays in residence permit processes as additional factors reducing foreign interest in Turkey.

Calls for Golden Visa and Policy Reform

Tekçe emphasized that attracting international investors again will require a shift in strategy, starting with granting residency permits before citizenship options.

“In other countries, only about 15% of investors buy property for citizenship, while 85% prefer golden visa programs,” he explained. “With a golden visa-type system, we can make entry, banking, and utility subscriptions much easier for investors.”

He proposed introducing silver and golden visa programs, simplifying property acquisition and administrative procedures, and centralizing all processes under a single authority. Tekçe also called for ending the practice of granting citizenship through property purchases, arguing that this would help reverse negative public perceptions.

According to Tekçe, the outlook for 2026 remains cautiously optimistic if the right policies are implemented.

“Turkey is increasingly seen as a safe haven amid rising regional and global conflict risks. Our latest survey shows that 77.3% of our members believe Turkey will continue to attract investors. This strong expectation increases our hopes for 2026,” he said.

Industry Calls for One-Stop Investor Management

Echoing similar concerns, Mustafa Kemal Şahin, Chairman of the Association of Real Estate Marketing and Sales Professionals (GAPAS), said the increase of the citizenship-by-investment threshold to $400,000, longer investment return periods, and public backlash have all contributed to the decline in foreign home sales.

Şahin stressed that foreign buyers should be viewed not merely as homeowners, but as capital partners.

“Region- and product-based incentives should be introduced, foreign investors’ property acquisition processes should be managed from a single center, and land registry, tax, and residency procedures should be simplified,” he said.

He added that Turkey must be repositioned internationally as a safe, predictable, and profitable destination, supported by renewed state-backed promotion and branding campaigns. With restored confidence, Şahin believes investment could gradually expand beyond housing into commercial real estate, hotels, and income-generating assets.