Overseas Housing Booms as Turkey's Domestic Market Loses Appeal
"Haberler.com: Turkish overseas real estate spending hit $2.4B in Jan-Nov 2025. Experts debate how Turkey can win back domestic investor appeal. Burak Ustaoğlu reports 12-fold growth since 2021."
Overseas Housing Booms as Turkey's Domestic Property Market Loses Its Appeal
CBRT balance of payments data shows the amount paid by Turkish residents for overseas real estate rose 26.2% year-on-year in January–November 2025 to $2.423 billion — an all-time high. Monthly spending peaked at $288 million in August and bottomed at $144 million in January.
Overseas as a Plan B: Schengen, Residency, and the Search for Safe Havens
GİGDER Chairman Bayram Tekçe attributed the surge to lengthening domestic payback periods and inflation, identifying the UAE and Greece as the two strongest demand markets. He highlighted Dubai's institutional, transparent structure and tax advantages, and noted Greece's unique appeal: it serves buyers who want freedom of movement in Europe and a guaranteed Plan B. Through its Golden Visa program, Greece provides EU residency and Schengen access — though its market is shallower than Dubai's.
Tekçe cited a key yield gap: domestic Turkish rental payback can stretch to 30 years, versus 12–15 years in Dubai. The US and UK attract consistent interest for currency income, residency, and education, while Northern Cyprus features on radar for its pound-based market.
Average €500,000, Central and New Properties in Demand
Golden Visa purchases range from €250,000 to €1 million, averaging €500,000, with buyers favoring centrally located, easily managed, renovation-free new properties. Spain's Malaga and Barcelona attract buyers under digital nomad visa programs, while Hungary — which launched a Golden Visa — and EU-candidate Balkan countries offer affordable entry with visa flexibility.
Burak Ustaoğlu: Domestic Attraction Must Be Rebuilt
International real estate expert Burak Ustaoğlu quantified the transformation: "The level that stood at $216 million in 2021 has now cumulatively surpassed $2.6 billion. This represents approximately a 12-fold increase. The upward trend in overseas investment has been extremely sharp."
He identified three core motivations: "These are 'currency risk and asset diversification', 'return calculation', and 'life planning and the visa/residency equation.' Along the Dubai–Athens–London corridor, demand begins as investment and rapidly transforms into a family relocation plan; in Baku, accessible budgets and regional mobility motivations lead." He also named Montenegro and Baku as rapidly emerging destinations.
GİGDER's Tekçe underlined a broader structural issue: if Turkey's property sector becomes more institutional and predictable, domestic real estate could once again become the preferred choice for both Turkish and foreign buyers — but structural reform is a prerequisite. Özden Çimen projected overseas spending could exceed $6 billion by 2026–2027, with Turkish buyers favoring apartments and installment-based new projects.