They need a Turkish apartment

$45 million for a villa in the Arab Emirates — that's how much, as Kommersant FM found out, one of the Russian clients paid for real estate last year. Compatriots in 2022 bypassed all foreigners in Dubai in terms of the number of transactions concluded and are already buying up Arab real estate by floors. And in Turkey, Russians are leading in the number of residence permits received when buying a home. So how much can you earn on Dubai and Turkish real estate? And is she so attractive? Aelita Kurmukova found out.

The Arab Emirates earned almost $57 billion last year on the sale of real estate. The number of transactions, according to Bloomberg, has increased by 80%, breaking the record of 14 years ago. The Russians, as usual, are to blame, who buy everything without haggling. According to the brokerage firm Betterhomes, more than 86 thousand transactions for the purchase and sale of housing were registered in Dubai last year, and most of them are accounted for by Russians.

Housing prices start from $150 thousand. Arab realtors have already mastered Avito and laid out almost 3 thousand objects there. Meanwhile, the average check for premium real estate that Russians buy starts at $ 1 million, Ekaterina Rumyantseva, founder of Kalinka Middle East, said: "If we are talking about the primary real estate market, then for this money you can buy a two-bedroom apartment with an area of about 100 sq. m. in an elite, very high-quality complex under construction, you can pay for it you will be for four years. The initial payment will be 30%, plus a 4% fee when buying in Dubai. In Abu Dhabi, its size is 2%. Thus, a long installment plan without interest is provided on the territory of the Arab Emirates."

The price increase per year is about 10%, adds Ms. Rumyantseva. So while the complex is being built, you can earn up to 30% on investments in a Dubai new building. But these are just numbers, and it's hard to say what will happen in three years, maybe prices will go down in Dubai. However, now the Russians are choosing the Arab Emirates as a reserve airfield and diversification of assets. Local real estate for rent brings from 7% per annum, and Russians are buying up objects in landmark projects already by floors. At the same time, for the purchase of real estate, neither a residence permit, nor even citizenship, is given by the Arab Emirates. You can only get a resident visa for a period of six months to 10 years. The minimum entry threshold is $205 thousand.

But the Russians choose Turkish real estate precisely because of the passport, said the project manager about foreign real estate Tranio.ru Georgy Kachmazov: "In Istanbul, there is mainly a demand for a passport program in order to then rent out the purchased property.

In resort locations, customers are eyeing objects in premium Bodrum and more inexpensive options in Alanya and Fethiye. Most people really buy apartments in new buildings.

The market offers investors a rental yield of 5% and stories that it will all rise in price by 20-30% when resold. I am inclined to believe that those who purchase this property in order to obtain a Turkish passport are likely to sell it cheaper in the end, but at the same time solve their main tasks."

But you can also part with the apartment that allowed you to get a Turkish passport, according to local laws, only after three years. Now it is enough to invest $400 thousand in commercial or residential real estate for citizenship, although this figure was $150 thousand in the summer of 2022. And this year the minimum threshold may be raised again, warned Sapiro Estate CEO Ivan Sapiro:

"Now is the best time to take a closer look at Turkish citizenship, because you can get it for all family members by buying an apartment for $ 400 thousand. In February-March, many innovations are expected, including an increase in the investment threshold to $ 1 million in exchange for a Turkish passport. In addition, a ban on obtaining citizenship for all family members is not excluded. We are talking about the fact that only the investor could apply for it directly, and his relatives — only for a residence permit."

In addition, if you want to buy real estate in Turkey for the sake of a passport, be careful, realtors warn: local brokers sometimes inflate prices, and this fact pops up only when applying for citizenship.