Do Eastern fairy tales make eyes at you? Don't believe their mischievous sparkle, but check everything in practice. With the news summary from Realest Agency, you can do this in just 5 minutes.
Features of real estate markets in the Middle East
Eastern fairy tales in Israel, the UAE and Turkey will never be similar to each other. And although all these countries are included in the generalized concept of the Middle East, they differ significantly both externally and economically. While Oman, the UAE and Qatar rely on tourism, Bahrain is fully absorbed in its financial and banking sectors. Be that as it may, none of them will refuse to cooperate with foreign investors.
The Middle Eastern countries are slowly but surely opening up not only to tourists, but also to foreign businessmen. They are making changes to their tax systems in order to make the terms of cooperation as favorable as possible for all parties and so that even a non-resident of the state does not feel like an unwelcome guest. Foreigners are encouraged in every possible way to enter into partnerships. For example, they can freely buy real estate, which, in turn, brings them closer to obtaining a residence permit. There are also new programs for painless immigration. The conditions in each country are different, but they are mostly quite attractive, as they guarantee high returns. You can see a more detailed analysis of the real estate market in the most popular countries among investors in the table.
| UAE | Oman | Qatar | Saudi Arabia | Bahrain | |
| Residence permit for investors in real estate |
✅ |
✅ |
✅ |
✅ |
✅ |
|
Minimum investment amount to obtain a residence permit |
$204,000 | Any amount | $200,000 | $1,000,000 | $500,000 |
| Purchase of property | ✅ |
✅ |
✅ |
✅ |
✅ |
|
Projected rental yield |
8% (long term), up to 10% (short term) |
6% (long-term),8-10% (short-term) | From 8% | 7-9% | 12-14% (short-term) |
Current situation on the Turkish market
Turkey can literally be called an investor's buffet. It offers local and foreign clients the best properties and conditions. To buy an apartment in Turkey, a standard package of documents is required, and for those who have not yet saved up for the house of their dreams, there is an interest-free loan. Such ideal conditions are tempting to invest money somewhere, but in 2024 even they did not become a strong enough incentive. The Turkish Statistical Institute tirelessly monitors the situation on the market, so at the equator of the year, in July, its employees published a report with not the most comforting results - compared to July last year, 16.1% less real estate was sold to foreigners (2,350 units). The share of foreign investors also decreased significantly and amounted to only 1.8% of the total amount of transactions, the largest number of which were concluded in Istanbul (752), Antalya (878) and Mersin (218). The leading positions among the buyer countries are traditionally occupied by:
- Russia - 485 transactions;
- Ukraine - 171 transactions;
- Germany - 162 transactions.
In the first half of 2024, the amount of real estate sold to foreigners decreased by 42% and amounted to only 12,811 properties, and the total number of transactions concluded on the Turkish market decreased by 0.5% compared to the same period in 2023 and amounted to 672,162 transactions. The volume of mortgage sales also changed beyond recognition - 62,911 transactions, which is 53.8% less than recorded in the first half of 2023.
July was a turning point, from which improvements finally began. Thus, sales of apartments in new buildings increased by 28.9% (40,784 apartments) and amounted to 32.1% of all transactions. The secondary market also showed positive results - +10.8% (86,304 transactions) and 67.9% of all contracts concluded in Turkey. Overall activity increased by 16%. 127,000 housing units were sold, including:
- 19 047 in Istanbul;
- 11 364 in Ankara;
- 6 659 in Antalya;
- 77 in Bayburt;
- 64 in Hakkari;
- 61 in Ardahan.
There was a 3.1% decline between January and July, but the situation has started to change since mid-summer, giving hope for a successful end to 2024 and a return to previous levels for the Turkish real estate market.