Turkey leads the world in the exodus of millionaires. Where are they headed, and why?
According to the Millionaire Migration 2018 report by South Africa-based New World Wealth, 95,000 millionaires left their countries in 2017. The share of Turks was 6,000, matching the 2016 exodus when 6,000 of 82,000 millionaire migrants were also Turks. So a total of 12,000 Turkish millionaires left the country for reasons like their children’s education, health, and better living conditions, resettling in European Union countries and the Gulf region such as the United Arab Emirates. As a percentage of population, Turkey ranks number one in terms of millionaires who have left the country.
Millionaire migration continues at a rapid pace. This emigration has also had knock on effects in the consultancy and real estate sectors. Premar Real Estate Consul- tancy, founded in 2017 with offices in 38 different cities across Turkey from Edirne to Ardahan, has now entered the international market, Ozgur Erdem Incesu said. “Premar has offices in 8 countries from China to Portugal in a wide geographical area,” Incesu said. “Portugal, Greece and Bulgaria have been attracting attention lately, as well as Hungary, China, Albania, Ukraine, Denmark and the TRNC.”
Portugal, Greece and Spa n stand out
Turkey already ranks among the top 5 countries in Portugal’s Gold Visa program, which offers citizenship in return for investments. Similarly in Greece, Turkey ranks among the top three countries, while it has climbed the rankings in Bulgaria among internationals filing dual citizenship applications.
Incesu pointed out that Premar is the first Turkish real estate chain to operate abroad. “Since the Turkish real estate sector is now globalized, so Turkish citizens can also invest in real estate in different countries like foreigners who purchase real estate in our country. These countries are mainly Portugal, Spain, the U.S., Germany, England and Greece.”
Incesu noted that investors are not only legal entities but also a remarkable number of individual investors. “These purchases are either in the form of fund purchases or direct real estate purchasing. There are also purchases on a large scale, although it is rare.”
The leader in the real estate market in Turkey is Istanbul. Incesu said that the most important point for investors is the rate of profit that can be provided in the short term. For this reason, Istanbul and Izmir are preferred, he added. “The third airport and its vicinity in Istanbul and the Kanal Istanbul route always take first place. Izmir is the second focal point of new projects, especially Cigli and nearby investments, which have been rapidly adopted. The most notable purchases in the last period are old buildings. Real estate that requires some upgrades is popular because it can provide high profit after a short renovation. Besiktas, Sisli, Uskudar, and Karakoy are places that attract attention in this sense,” he said.
As millionaire migration continues from Turkey to abroad, millionaire emigrants also create new opportunities for consulting and real estate companies.