Gulf War and Economic Policies: Global Shift in Turkish Real Estate Investments

Data from the Central Bank of the Republic of Turkey (CBRT) shows that residential real estate purchases abroad reached a record 2.675 billion USD in 2025. This figure rose by 44.4% year-on-year to 208 million USD in January and by 18.4% to 225 million USD in February. However, following the Iran-Israel conflict, purchases dropped by 18% year-on-year to 187 million USD in March, by 19.4% to 187 million USD in April, and by 40% to 143 million USD in May. Over the three months, purchases from abroad to Turkey increased by 28.3% year-on-year to 590 million USD. In March, purchases rose by 62.4% to 242 million USD, by 17.1% to 164 million USD in April, and by 7.6% to 184 million USD in May despite the nine-day Eid al-Adha holiday. Dubai and Greece emerged as the top locations for Turkish real estate purchases abroad. The Gulf War's impact nearly halted purchases in Dubai, while Greece's negative stance towards Turkey negatively affected real estate purchases in the region. Observations noted that Russian citizens increased purchases compared to the same period last year, with some bureaucratic barriers being eased. International real estate expert Burak Ustaoğlu noted that investors generally became more cautious about foreign purchases and delayed investment decisions. Ustaoğlu highlighted that Turkey's recent economic policies and steps to strengthen financial stability encouraged some investors to shift towards domestic opportunities. Turkey's perception as a stable and trustworthy country has attracted foreign investors. Currently, Turkey's real estate market offers significant price advantages, with many construction firms selling completed properties at competitive prices due to slowing demand. Observations indicate increased interest from investors in the Gulf, Russia, Azerbaijan, and Kazakhstan.

The price advantage in Turkey's real estate market presents a significant opportunity for long-term investors, while Turkey's strong diplomatic presence on the global stage is enhancing its appeal to foreign investors. This could further solidify Turkey's presence in the global real estate market.