Over the past five years, housing prices in Turkey have shown a strong increase in TL terms. The nominal growth rates appear attractive to many investors. However, when evaluating the real performance of real estate investment, the key criterion is the currency in which the increase occurred and the actual real growth rate.
When looking at the current dollar-based value of a home purchased with foreign currency in 2021, it is evident that a significant portion of the TL price increase has been offset by the effects of exchange rates and inflation. Nominal gains do not always correspond to real, foreign currency-based wealth growth.
Investments made abroad during the same period, however, present a clearer picture. For example Greece, particularly Athens , an investment of €250,000 yielded an average increase in value of 35-40% in euro terms. When five years of rental income is added, the total return can reach 60-70%. The return is earned in euro terms within a regulated and transparent market structure.
Similarly Dubaioffered investors a strong foreign currency-based cash flow during the same period, with a value increase of over 50% and an annual gross rental yield of 6–8%. Tax advantages and the international demand structure are among the key factors supporting this performance.
At this point, the issue is not just price increases; it is the growth, preservation, and sustainable cash flow generation of capital in strong currencies.
When evaluating data from the last five years, it is evident that foreign real estate investments made in foreign currency-based and global demand-exposed markets are a more rational and sustainable choice in terms of real wealth growth.
As a Golden Partner, we support our investors at every stage of the process, including the right location selection, financial feasibility analysis, purchase process management, Golden Visa consultancy, and post-investment property management.
