Turks headed home abroad, 40.5 billion TL in eight months

Remittances transferred abroad for real estate purchases reached 1 billion 377 million dollars as of the first eight months of the year. When converted with the average exchange rate of the Central Bank in the mentioned period, this amount corresponds to 40.5 billion TL.
In Turkey, there has been a stagnation in the housing sector for a while due to the decrease in the middle-income group's residential house purchases due to the excessively high loan interest rates, the rentier segment preferring interest-bearing instruments instead of housing investments, and the slowdown in purchases by foreigners. On the other hand, it is observed that "investor type" domestic buyers in the upper income group have increasingly turned abroad for real estate investment since the beginning of 2023.
The amount of foreign currency transferred abroad for real estate purchases, which was 213 million dollars in 2020, will increase by 74.2 percent to 371 million dollars in 2021, by 69.3 percent to 628 million dollars in 2022, and by a record increase of 183.8 percent in 2023. It reached 1 billion 782 million dollars. If the momentum in the first eight months of this year continues, this volume is expected to be at last year's levels throughout the year.
According to the Central Bank balance of payments data, in the January-August period, real estate investments of Turks abroad increased by 17.1 percent in dollar terms compared to the same period of the previous year, while real estate investments of foreigners in Turkey decreased by 23.3 percent to 2 billion 24 million dollars. Accordingly, the foreign currency that went out for real estate purchases approached the amount brought for this purpose. When the capital taken abroad by Turks for this purpose is deducted from the foreign currency brought by foreigners to Turkey for real estate purchases in the first eight months of last year, the net inflow in this field, which was 1 billion 462 million dollars, remained at 647 million dollars, 55.7% less in the same period this year.
As of the end of August, foreigners purchased 2 billion 946 million dollars of real estate from Turkey in the last year, while Turks' purchases abroad reached 1 billion 983 million dollars. On an annual basis, the net of mutual real estate investments was 963 million dollars.
Half of foreign investment is in real estate
In the January-August period, the total investment in this sector, together with other real estate activities as well as housing purchases abroad, reached 1 billion 679 million dollars. Excluding liquidations and intra-group transfers, the direct investment made abroad by Turks in the first eight months, including housing purchases, was 3 billion 927 million dollars, while approximately half of this was made for "real estate activities", the largest part of which was housing purchases.
In the first eight months, Turks' direct investments abroad were followed by real estate, mining and quarrying with 601 million dollars, and construction with 343 million dollars. The total resources transferred for investments in various manufacturing industry sub-sectors reached 280 million dollars. The finance sector was also among the areas where the most investment was made, with 265 million dollars.

8-month foreign capital inflow is 6.4 billion dollars
In contrast to the one-time contribution of real estate purchases to the national economy, an inflow of 3 billion 722 million dollars was made in the January-August period this year on the "capital" investments front, which provide continuous added value to the economy by creating employment by producing and exporting through establishing new facilities or purchasing existing facilities. happened. When liquidations, which reached 467 million dollars with an increase of 171.5 percent in the same period, are excluded, net direct capital investment inflow reached 3 billion 255 million dollars with an increase of 4.8 percent.
During this period, the inflow through loans and payments made by foreigners to group companies in Turkey increased by 44.1 percent, reaching 1 billion 131 million dollars. Thus, in eight months, total net direct capital investment inflow (excluding housing purchases) increased by 12.7 percent and reached 4 billion 386 million dollars.
When housing purchases by foreigners in this period are included, the total direct investment inflow of 6 billion 410 million dollars remained 1.8 percent below the total inflow in the same period last year.
 Outgoing domestic capital is 3.8 billion dollars
In the same period, while the resources that Turks sent abroad for direct "capital" investment, other than housing purchases, was 2 billion 550 million dollars, after deducting the 532 million inflows that were liquidated and brought back to the country, the net amount of this was 2 billion 18 million dollars. During this period, 398 million dollars of loans and other types of transfers were made to foreign group companies.
Thus, the total foreign exchange going abroad for direct capital investment in seven months was 2 billion 416 million dollars, 2.7 percent less than the outflow in the same period last year. When the amount taken by Turks for real estate purchases was added in this period, the total capital outflow on the direct investments front was calculated as 3 billion 793 million dollars, an increase of 3.6 percent.
 
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