Pakistani property investment in Turkey has plunged, marking a shift in global real estate trends. While Dubai attracts Pakistani business with its investment opportunities, other countries with established migration programs like the European Countries, the United States, Canada, and the UK are also becoming popular destinations for Pakistani investors seeking a better life abroad.
Pakistani investors, who consistently ranked at the forefront of foreign property purchases in Turkey for years, have seen a significant decline in interest at the end of 2023. This shift comes after a period of dominance in the Turkish real estate market for Pakistani buyers.
Overall Market Decline
The Turkish housing market experienced a significant slowdown in 2023. According to the Turkish Statistical Institute (TurkStat), house sales fell by 17.5% compared to 2022, reaching 1.22 million units. Istanbul, the most populous city, remained the leader with 198,739 units sold, followed by Ankara and Izmir. This decline is further amplified by a downturn in foreign property purchases.
- Foreign Buyer Slump: In a noteworthy downturn for the Turkish real estate market, home sales to foreign buyers reached their lowest point in a decade. Data from the country’s central bank shows a significant drop of 48.1% in foreign property sales compared to 2022, reaching only 35,005 units. This represents a steep decline from a record high of $6.273 billion in net foreign inflow for the Turkish real estate sector in 2022. The figure for 2023 sits at a decade low of $3.560 billion, with real estate purchases making up a significant portion (76.1%) of total net foreign direct investment.
- Tightening Conditions: The Turkish government may have implemented stricter regulations or economic policies that impacted the housing market.
- High-Interest Rates: An increase in interest rates for housing loans would make purchasing property more expensive and discourage potential buyers.
- Alternative Investments: The emergence of other investment opportunities offering potentially higher returns could be drawing investors away from the Turkish real estate market.
- Foreign Buyer Slump (Continued): The Sözcü daily reported, citing data from TurkStat, that this 48.1% decline in foreign property sales represents the lowest point in the past six years.
Why Do Pakistanis Migrate Abroad?
While Pakistanis previously held a leading role, Russians emerged as the top foreign buyers in 2023, purchasing 10,560 houses, followed by Iranians and Iraqis. The reasons for the decline in Pakistani investment in Turkey likely reflect broader trends in Pakistani migration. Reports indicate a significant increase in Pakistani emigration in 2024, with over 450,000 people leaving the country since the beginning of the year. The desire for a better lifestyle, improved job opportunities, and access to quality education are historically cited as key drivers of Pakistani emigration.
Where Do Pakistanis Go Now?
Recent updates suggest a growing trend of Pakistani businessmen and wealthy individuals looking towards Dubai as a destination for investment and potentially migration. A report from mid-2022 shows a significant investment in Dubai real estate by Pakistanis, ranking them as the third-largest investors in the city at $10.6 billion. Dubai’s business-friendly environment and ease of setting up trade are believed to be attractive factors.
Beyond Dubai, recent reports suggest an increase in interest from Pakistanis for other countries with established migration programs. The United Kingdom, United States, Canada, Caribbean nations, Greece, Spain, and Portugal are becoming attractive destinations, offering programs catering to skilled professionals, students, and entrepreneurs.
Previous
Next
The decline in Pakistani investment in Turkish real estate presents a significant shift in the global property market. While Dubai appears as a potential new destination for Pakistani investment, particularly for business purposes, other countries with established migration programs are also gaining traction seeking global mobility, opportunities for dual citizenship, and an enhanced quality of life.
BLS Global, a leading provider of B2B and B2C events and multimedia platforms for residence and citizenship by investment, offers expert advice and connects you to sponsors who have assisted thousands of wealthy individuals worldwide.
If you are looking for the most ideal residency or citizenship by investment migration options for you and your family, please request a callback below.
