Ownership of Iraqi Properties in Turkey - Motivations and Prospects for Real Estate Investment

Many wonder about the possibility of Iraqis owning property in Turkey and the motivations that drive most members of the Iraqi community to invest in real estate in the country. In this article, we will review the essential information regarding this issue, discussing the future of Iraqi investments in Turkey, their preferred locations, along with addressing numerous common inquiries.

Iraqis’ Property Ownership in Turkey : Legal Framework and Statistics

In 2012, the Turkish Cabinet issued a law granting Iraqis the right to purchase land and properties in the country, reflecting the historical and economic ties between the two nations. This decision came after a period of security crises in Iraq, prompting many Iraqis to seek a safe haven and stability in Turkey. According to statistics from June 2021, Iraqi nationality topped the list of foreign nationalities owning properties in Turkey, with 773 properties purchased by Iraqis, accounting for 16% of the total real estate sales to foreigners.

Motivations Behind the Increased Iraqi Property Ownership

There are numerous reasons and motivations for the notable rise in Iraqi ownership of properties in Turkey, among the most prominent are :

1. Geographical Location : Turkey is the ideal choice for Iraqis due to its proximity, with a border of 367 km separating the two countries. Given the current conditions facing many neighboring countries, Turkey stands out as a safe and suitable destination.
2. Political and Security Stability : Iraqis often seek a stable and secure environment for their families and investments. Turkey is considered one of the most stable countries in the Middle East. The tense political and security situation in Iraq drives many citizens to look for a secure and stable refuge, and Turkey offers these advantages due to its political and economic stability.
3. Competitive Prices and Quality of Construction : Comparing real estate prices and construction quality between Turkey and Iraq shows that Turkey offers high-quality real estate options at competitive prices. For instance, an investor can purchase an apartment in a prime location for less than what it would cost in Iraq. These competitive prices also encompass living costs and essential services, making life more comfortable and economical.
4. Facilitated Travel Procedures : Airlines, such as Turkish Airlines, provide significant conveniences for Iraqis, with up to 17 daily flights between Iraq and Turkey, which helps ease pressures regarding visa acquisition and travel procedures.
5. Cultural and Educational Diversity : Turkey, thanks to its geographical location and diverse culture, offers a rich and varied living experience. Turkish schools and universities rank high in global classifications, making them an attractive option for families seeking quality education for their children. Additionally, various cultural and recreational activities enhance the quality of life, making living in Turkey an enjoyable and fruitful experience.
6. Touristic Aspects and Geographical Appeal : The touristic features of Turkey are among the main factors attracting Iraqis. Turkey boasts a wealth of tourist attractions, archaeological sites, stunning landscapes, and beautiful beaches. This makes Turkey not only a location for real estate investment but also an excellent tourist destination for vacations and enjoyable times.
7. Advantages of Obtaining Turkish Citizenship : Turkish policies are generous towards foreign real estate investors, including the provision of Turkish citizenship. Individuals who invest a certain amount in real estate can obtain Turkish citizenship within a short period, adding additional value to this investment. Many Iraqis view this opportunity as a key to securing a better future for themselves and their children.
8. Strong Bilateral Relations between Iraq and Turkey : The economic and political relations between Iraq and Turkey are witnessing continuous improvement, enhancing the confidence of investors from both countries. Trade cooperation and economic exchange between the two nations contribute to creating a favorable investment environment and enhance the chances of success for real estate projects.
9. Government Support and Encouragement for Investment : The Turkish government adopts supportive policies for foreign investment in general, and particularly in real estate. Offering tax incentives, administrative facilitation, and providing transparent information make Turkey an appealing choice for Iraqi investors and others from the region.

What are the preferred Turkish provinces for Iraqis ?

Iraq and Turkey are historical neighbors sharing many cultural and social commonalities. Recent years have seen a notable evolution in the relationship between the two countries, leading to an increase in the number of Iraqis residing in Turkey, estimated at around 700,000. These Iraqis have preferred to congregate in specific provinces, establishing them as bases for their residency and economic activities, highlighting the significance of these provinces in shaping the Iraqi community in Turkey. Among these provinces are :

Istanbul : The Heart of the Iraqi Community 

Istanbul is the most attractive province for Iraqis, combining the features of a cultural and commercial capital. It serves as a vibrant hub for businesspeople and entrepreneurs who prefer to establish their operations at both local and international levels. The city's diverse culture and comprehensive service network make it an ideal destination for Iraqis looking to expand their business activities or settle down.

Ankara: The Political and Economic Center

 Ankara holds equal importance to Istanbul, being the political capital of Turkey and a favored destination for Iraqi investors. The province hosts numerous industrial facilities and major factories, making it suitable for Iraqis wanting to start manufacturing operations or search for job opportunities. This city serves as an ideal platform for investment and economic growth, thanks to its business-friendly environment.

Trabzon: Diversity and Eastern Spirit

 Trabzon represents an attractive destination for Iraqis wishing to live in an authentic Eastern atmosphere. The province is populated by a middle-income Arab community and is renowned for its natural beauty. However, in recent times, many Iraqis have relocated to other provinces, yet Trabzon remains one of the provinces with a significant Iraqi presence.

Samsun: Deep-rooted Iraqi Identity

Samsun reflects a familiar atmosphere akin to Baghdad, as it hosts the largest concentration of Iraqis. Walking through the streets of Samsun, one can sense a familiar vibe reminiscent of Iraq, due to the significant Iraqi population and their contributions to the daily life of the city.

The Future of Real Estate Investment for Iraqis

Current data indicates that Iraqi real estate investment in Turkey is trending positively. Statistics have shown that the total number of properties owned by Iraqis has exceeded 8,000. The notable growth in this sector reflects the increasing confidence of Iraqis in the Turkish real estate market, which offers them various opportunities to invest their money and enhance their investments. Moreover, the prospects for Iraqi real estate investment in Turkey appear promising, as the country’s real estate market is expected to experience further growth thanks to the legal and economic facilitations in place. Additionally, the growing trend of property ownership among Iraqis reflects their desire for stability and an improved quality of life. Iraqi interests are likely to diversify across Turkey, with increasing attention on vital areas such as Istanbul, Antalya, and Bursa, as these cities are seen as more attractive for investment.

Conclusion

In conclusion, the Iraqi community in Turkey exemplifies coexistence and cultural interaction, resulting in a vibrant and stimulating environment for investment. Turkish provinces, especially Istanbul, Ankara, Trabzon, and Samsun, among others, present unique opportunities for Iraqis to invest and engage in economic and social life. Understanding the requirements and necessary conditions for real estate investment paves the way for effectively realizing the aspirations of Iraqis in Turkey. The property ownership trend among Iraqis in Turkey reflects the strong ties between the two peoples and provides promising investment opportunities that enhance their living standards. The legal and economic facilitation offered by Turkey strengthens this trend, making it a preferred destination for many Iraqis seeking stability and lasting prosperity. MBANY Real Estate Company in Turkey aims to provide the necessary support and information to anyone interested in successful real estate investment in Turkey, and success is a shared path we look forward to