Russian nationals continued to dominate the foreign property market in Turkey in December 2024, holding their position as the top buyers of real estate in the country since April 2022, according to recent data from Turkey’s state statistics agency Turkstat.
However, the pace of Russian property purchases has slowed significantly, with a noticeable decline in both monthly and annual figures.
In December 2024, Russians bought 438 residential properties in Turkey. While this number still placed them at the top of the foreign buyer rankings, it marked a 16.8% decrease compared to the same month in 2023, when 527 properties were purchased.
The figures reflect a broader trend that has seen a decline in demand for Turkish real estate among Russian buyers over the past year.
In total, Russians acquired 4,860 properties in Turkey throughout 2024, a sharp drop of 53.9% from the previous year, which saw 10,560 properties purchased.
The decrease is even more pronounced when compared to 2022, a record year when 16,310 properties were bought by Russian nationals.
The current figures represent a 70.1% drop from 2022 and a 9.5% decline from 2021, when Russians purchased 5,370 homes.
Several factors have contributed to the downturn in Russian property purchases in Turkey. According to analysts surveyed by RBC, the most significant factors include Turkey’s unstable economic situation, rising inflation, and the depreciation of the Turkish lira.
These macroeconomic challenges have made Turkey’s real estate market less attractive to foreign investors, particularly those from Russia, whose purchasing power has also been affected by the weakening of the ruble in 2024.
In addition to economic challenges, the tightening of Turkish residency permit rules has also impacted Russian buyers.
Turkey had previously been a popular destination for Russians seeking to secure residency by purchasing real estate, but the government has significantly tightened the criteria for granting residency permits to property buyers.
This has likely reduced the appeal of Turkish property for those seeking residency options, further contributing to the decline in property purchases.
The first half of 2024 saw a notable decrease in demand from Russian buyers, with some estimates suggesting a decline of between 19% and 35% compared to the same period in 2023.
The downturn was attributed to shifting interest away from Turkey, as well as from other popular destinations like the UAE, in favor of more stable and economically favorable options.
Experts predict that demand for Turkish property from Russian nationals is likely to continue its downward trend into 2025.
The combination of Turkey’s economic challenges, currency fluctuations, and stricter residency regulations is expected to deter potential buyers, leaving many to seek alternative real estate markets where the economic climate is more favorable.
Despite the current decline, Russian nationals remain the dominant foreign buyers in Turkey, a position they have held for nearly three years.
However, the continuing decrease in property transactions suggests that the Turkish real estate market may face ongoing challenges as it navigates both domestic and international economic pressures.