As of September 2018, a residential property investment of only US $250,000 will buy you and your dependent family Turkish passports directly. The previous investment threshold of US $1 million was deemed too high to attract residential investment from foreign nationals, especially at a time when the Turkish economy could benefit from a rapid injection of foreign inbound investments.
The equivalent deposit requirement of of US $3 million has been lowered to US $500,000 as well. In addition, the lower limit of fixed capital investments has been reduced to US $500,000 from US $2 million, making Turkey far more attractive as a business investment destination when it comes to the acquisition of economic citizenship. Where citizenship applications are based on job creation, the threshold for job creation has commensurately been lowered from 100 to 50.
Foreign investors are required to maintain the minimum investments for a minimum of 3 years to meet the criteria for Turkish citizenship. The programme has garnered extensive interest from Iranians, Nigerians and Ukrainians, all seeking to hedge their risks in terms of geo-political uncertainties in their native countries.
The announcement is expected to be well received by high net worth South African nationals, in particular, as the combination of lira depreciation, combined with the lowered investment threshold, will make Turkish investment properties far more accessible.
Demand for Turkish residency by property investment from South Africa has already seen a dramatic increase during the course of 2018. Given the deteriorating socio-economic and political outlook in the country, South Africans are seeking out Plan B options abroad in record numbers.
Head of the Real Estate Investment Partnership Association (GYODER) Feyzullah Yetkin is on record as saying that with the first reciprocity rule in 2012, the country had achieved an increase in property sales to foreigners of $4.6 billion per year. Arab nationals, in particular have been buying properties in Turkey with a view to hedge the risks of geographical instability in their native jurisdictions.
It is expected that he new relaxation of investment requirements will lead to an initial increase in property sales to foreigners worth at least US $10 billion.
It is hoped that the announcement will lead to an annualized property sales value of at least US $20 billion per year.
According to sectoral data, nearly 12,000 houses were sold to foreigners for a total of nearly $2.12billion.
Konutder board member Erden Timur is on record as saying that the average value of property sold to foreigners is in the region of US $177,000, and that the new citizenship programme incentive will likely encourage foreigners to start buying homes in the US $250,000 bracket.
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