There is still strong demand for housing in Türkiye, especially from citizens of Gulf countries. So how are these sales taking place? What are the loan utilization rates?

The mortgage law in Türkiye has been in effect since 2007. However, even today, there is debate about whether it is being implemented correctly. Given factors such as high interest rates, banks restricting loan terms, and the inability to transfer mortgages, it would be unrealistic to expect a significant increase in mortgage volume. Only a small percentage of housing sales are financed through mortgages. Due to high interest rates, this percentage has further declined in recent years.

While there's no precise figure for foreigners, bankers say the ratio is around %5. This means that only 5 out of every 100 homes sold to foreigners are financed through mortgages. One of the main reasons for this is that banks aren't very enthusiastic about this type of investment.

Banks are reluctant to lend mortgages to foreigners.

Her ne kadar yurtdışında yerleşik bir yabancı Türkiye’de ihtiyaç ve taşıt kredisi alamasa da, mortgage almasının önünde bir engel yok. Pasaportundaki adresi yeminli tercüman aracılığı ile Türkçe’ye çevirterek bir adres tescil belgesi alması ve vergi dairesinden bir vergi numarası alması yeterli. Ancak kanunen ekspertiz değerinin %75’ine kadar verilebilen mortgage, yabancılar için genelde %50’ye kadar uygulanıyor. Bankalar Türkiye’de yerleşik, Türkiye’de iş yapan ya da konsolosluk çalışanı gibi yabancılara daha kolay mortgage veriyor. Aksi halde eğer Türkiye’de başka evi varsa, kefil yada teminat gösterebiliyorsa ya da geliri konusunda daha detaylı belgeler ibraz edebiliyorsa kredi verilebilme oranı artıyor.

Of course, it is also possible for foreigners who have been residing or working in Türkiye for more than 6 months, or consular staff, to obtain a personal loan for the purpose of acquiring a home. This is called a completion loan. It is mostly used for properties that are not eligible for a loan otherwise.

There are advantages to buying in cash.

Another reason why the number of mortgages given to foreigners is so low is that foreigners don't really prefer them either. There is a price advantage for cash purchases. And the influx of large sums of money into Türkiye is not a major problem.

Furthermore, the company undertaking the project itself can offer more flexible payment terms than banks. Especially in second-hand and neighborhood-based, typically single-block, smaller projects, tax advantages can be obtained by undervaluing the apartment's actual price.

Markalı konut projelerinde ise durum biraz farklı. Tutar ne ise resmi olarak onu belirtmek zorunda. Ayrıca Mortgage verilebilmesi için %70 inşaat seviyesi şartı var. Markalı konutlar genellikle temel aşamasında satıldığından dolayı mortgage verilmesi için banka ile anlaşma yapıp garantör limit açması gerekiyor. Proje aşamasında sağlanan kredilerde ev teslim edilene kadar firma da bankaya karşı sorumlu. Eğer 2 taksit ödenmezse banka firmadan krediyi tahsil edebiliyor. Bunun takibi yabancılarda daha zor olduğundan markalı projeler de genellikle yabancılara peşin satışı tercih ediyor.

For all these reasons, even if real estate sales to foreigners increase in Türkiye, the amount of mortgages granted does not seem likely to increase significantly. Because although this instrument is on display in banks' windows, giving mortgages to foreigners is not a priority strategy for banks.

In the area of mortgages, the priority should be to address fundamental structural shortcomings and bring practices up to international standards. To encourage foreigners to use mortgages in Türkiye, it is necessary to provide the same practices as in their own countries.