Russians have started actively buying apartments in Turkey, most buyers rely on rental income. Political instability and the devaluation of the lira have reduced the cost of housing by more than a third, and local real estate agents say this is a "great time" for those who want to make money in foreign currency. What income can be counted on and what risks should be taken into account?
By the end of 2020 and in the first quarter of 2021, Russians ranked third among foreign home buyers in Turkey, ahead only of citizens of Iran and Iraq according to the real estate agency Turk.Estate and the Turkish Real Estate Institute.
In total, Russians bought 3,078 houses in Turkey in 2020, which is 6% more than a year earlier. The same data is provided by Profit Real Estate, a company engaged in the selection and sale of real estate in Turkey.
The growth will continue in 2021: in the first quarter, Russians bought 938 houses in Turkey - this is already 15% more than in the same period last year according to Turk calculations.Estate. In 2020, Turkey ranked second among Russian-speaking buyers in the list of the most popular countries for buying real estate. Bulgaria is in the first place, Spain is in the third. Residents of Moscow, St. Petersburg, Minsk, Alma-Ata and Kiev were most interested in Turkish real estate. We bought traditionally - in Istanbul, Alanya and all over the Mediterranean coast.
80% of Russians buy real estate and then rent it out, and for some, Turkish citizenship may be a priority. 70% of Russians buying real estate in Turkey want to receive passive income from it.
The most popular tourist destinations among investors are Antalya, Istanbul, Alanya, representatives of Tranio and Astons told Forbes. Knight Frank's main customer demand is in Istanbul.
What does Turkey matter?
Russians' interest in Turkish real estate is explained by low interest rates and the search for alternative investment opportunities. In Russia, according to the Central Bank, interest rates on deposits in rubles for the third decade of April are 4.72%, interest rates on deposits in foreign currency are practically zero.
In addition, Turkey is geographically close, has a developed tourist infrastructure and relatively low real estate prices.
The year 2020 was extremely difficult for the Turkish lira - it fell by 25% against the dollar over the year, and the decline was even more dramatic against the euro - by 36%, due to state instability and currency depreciation, the value of many real estate properties for sale fell by 30-40%.
In Istanbul, the average rental income will be 5-9% in dollars or euros, depending on the property, area and rental options - short-term or long-term.
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