Is Buying Property in Turkey a Good Investment?
Yes, buying property in Turkey is a good investment. However, your question should be how to make good returns from the real estate sector. Turkey is vast; some areas are complete duds regarding the Turkish property market. Thanks to their potential, other areas attract investors from near and far. Making a wise investment involves what you know, not who you know. With that in mind, we put together this helpful guide to the real estate market so you can see the benefits, learn how to navigate local markets and ensure good returns.
Is Buying Property in Turkey a Good Investment?
Why Turkey Has Investment Potential
ECONOMY: There are concerns over the economy and exchange rates of foreign currencies. The Turkish currency is currently at an all-time high. However, remember Turkey is strong. The world's 17th-largest economy has suffered in recent years thanks to the COVID-19 pandemic and the significant link to the USD. However, the World Bank predicts new monetary policies, will prompt Turkey's growth to normal levels after 2024. This will address the inflation issues, making Turkey a strong economy.
STRATEGIC LOCATION: This real estate market sits right in the middle between East and West, making it a land of high importance. Foreign buyers flock from all over the world, increasing the liquidity due to domestic and foreign buyers in the market. Likewise, Turkey attracts global business, with many basing their headquarters in Istanbul. The international connections are impressive.
EASY BUYING PROCESS: New property owners are always surprised at how quickly the buying process is. The property search takes longer than the actual property purchase. With a limit of 30 hectares of property, real estate buyers just need a tax number and a Turkish bank account. If all finances and paperwork are in place, they receive their deeds from the land registry in a week.
INFRASTRUCTURE INVESTMENT: If there is one thing that this popular destination does well, it is reinvesting back into the community. Major cities have impeccable airports, roads, bridges, highways, and good transport links. Local councils also continually invest in green spaces and community programs.
ISTANBUL ALPHA CITY: For investment property, you can't get any better than an alpha city. The Think Tank of the World Research Network designates an alpha city as a " primary node in the global economic network." While investments in other prominent places like Antalya attract holiday and retirement home buyers, many potential investors look at Istanbul for its global status.
But What are the Benefits of Investing?
REAL ESTATE PRICES: Property prices are usually the main reason. Putting aside commercial properties, residential homes are still affordable compared to other foreign countries like France or Spain. Turkish cities like Istanbul, Bursa and Antalya are prime for foreign investment, thanks to their purchase prices.
TURKISH CITIZENSHIP BY INVESTMENT PROGRAM: The bonus of an excellent real estate investment is Turkish citizenship, which gives you and your family the right to live, work, and study as a Turk. You can keep dual citizenship and don't have to reside in the country. The minimum investment level for the Citizenship by Investment program is just $400,000. After obtaining a residence permit and applying, receive citizenship in as little as six months.
LOW-RUNNING COSTS: One factor that real estate investors always remark on is the low running and maintenance costs. TV licences do not exist, council taxes are low, and the costs of electricity, internet, water, and gas are a fraction of those of European countries.
PROPERTY VALUES: Do your research, find the right destination, and tap into average increases of 10% annually. The rate of capital appreciation varies from district to district, but certain places are performing better than others for affordable prices and future growth trends.
LOW RISKS: International buyers are often surprised at how water-tight the Turkish home-buying process is. All payments happen through designated Turkish banks, creating a paper trail and protecting your money. Official valuation reports ensure that foreign nationals don't overpay for the value of their home. While some international investors employ lawyers for due diligence and advice, the water-tight process for buying residential property is heavily in the buyer's favour.
LIFESTYLE: Putting aside direct investments, tap into the delightful lifestyle and culture that is the envy of the world. Prospective buyers love the 7000 kilometres of coastline, the gorgeous summer weather, and the immense natural beauty. Turkish culture is friendly, and many foreign property buyers say they feel safer in Turkey than in their home country. Hence, there are thousands of foreign expats living here.
About the Rental Market and New Regulations - Must Read for Landlords
Previously, like many other countries, Turkey attracted investors who specialised in holiday rentals like Air BNB for the high rental yields. However, the laws regarding rental properties have now changed, which has prompted a drop in rental demand. Anyone who wants to rent out their properties can only do so for 100 days a year. They must gain a licence from the Ministry of Culture and Tourism. Secondly, you must always display this license, and if the rental is an apartment, gain permission from all other apartment owners.
It isn't the procedure that is the problem, but the fact that you can only rent for 100 days doesn't make this ideal for returns. Please note this procedure is for short-term holiday rentals only, so to continue down this route, opt for long-term rentals or look at branded hotel residence programs, where you lease the apartment back to the management team.
How Much are Real Estate Prices in Turkey?
Once again, this is an area where you need to drill down locally instead of looking nationwide. Turkey has certain places with average prices ideal for mid to long-term profitable investments. In addition, other places specialise in luxury properties. Head to certain districts on the Bosphorus shorelines of Istanbul, and you won't find anything below six digits.
For affordable homes, look at Altinkum on the Aegean coast, the outskirt districts of Istanbul, Turkey's largest city, or Alanya, on the outskirts of the Antalya province. Additionally, look to Alacati, Kalkan, Istanbul or the Bodrum peninsula for luxury, modern apartments and villas.
When is the Best Time to Buy Real Estate?
There isn't one. Most central locations, like Istanbul, are constantly on the move with an ever-revolving circle of buyers and sellers. If you head to seaside resorts with a tourism stronghold, there is higher demand for properties from Spring through Autumn, but in terms of prices, there is no one month that fairs better than others.
What is the Home Buying Process for Foreigners?
FINANCES: Know your budget for buying and factor in roughly 6 to 10% of the budget for the extra costs. Be aware that when looking at foreign property investments, Turkish mortgages for foreigners are a drain on the pocket because of high interest rates.
CHOICE OF LOCATION: Decide on the most attractive destination for you. The Mediterranean coast is ideal for beautiful beaches, while Bursa excels in natural beauty thanks to Uludag Mountain. Istanbul's city centre and the capital city of Ankara are great for urban vibes, while the Aegean coast has a slightly cooler temperature than the Mediterranean. Don't forget to check amenities like hospitals, schools, shops, and public transport networks.
VIEW PROPERTIES: To start your search now, see our portfolio of budget and luxury apartments and villas. Each listing contains the square meter, sales price, location, and home features; use the contact details to find out more or arrange viewings. Once you find your ideal home, we start the property purchase procedure.
BUYING: We will help you get a tax number and open a bank account. If you use a lawyer to make the title deed application and receive legal advice, we work with them and provide all the paperwork. If you cannot be in the country, appoint them as your Power of Attorney. Extra costs include notary fees, translator fees, purchase tax, land registry fees, and VAT for commercial properties.
TAKE OWNERSHIP OF PROPERTY: Things move quickly in Turkey, and once the application is approved, the deeds are signed. After the purchase agreement finishes with the payment, we change the utility bills into your name and, in the case of new properties, help you furnish them. After that, we are always one phone call away should you need professional advice on running and managing your new home.
Can I Live in Turkey if I Buy a Property?
Many people want to live in Turkey because the cost of living is cheaper than in European countries. The exchange rate also means those receiving pensions or wages in foreign currencies have an excellent lifestyle. You don't have to buy a house. You can rent but must purchase a home worth at least $200,000 to go down the property ownership route for residency.
Does Buying a House in Turkey Give You Citizenship?
You don't automatically get citizenship. To live, work, and apply for citizenship through a real estate investment scheme, you must buy property worth at least $400,000, pledge to keep it for at least three years and make a separate application after obtaining residence.
Hotspots Where Most Foreigners Buy
Market factors vary, but most foreign ownership happens in certain towns and districts. Foreigners rarely buy in the East, and Middle Eastern buyers are prominent in the North, while European buyers flock to the South and West Coasts. Continually assess your location to determine whether that destination is right for you, but the following are popular places for foreigners.
ISTANBUL: The Turkish economy reigns supreme here. Daily life is an ever-revolving circle of cultural heritage and modern trends. Districts that stand out for property investment include Kucukcekmece, Buyukcekmece, and Eyup for conservative neighbourhoods and the Sariyer district for luxury homes.
ANTALYA PROVINCE: This region performs well for international buyers and the domestic market. It is mainly a beachside destination but attracts cultural travellers and is known for its nightlife and entertainment scenes. Popular places include Antalya city centre, Belek for golfing, Side for historical ruins, or Alanya, which is becoming a mini city.
FETHIYE PROVINCE: This is a stronghold for British nationals, but in recent years, more Europeans have flocked here. Uzumlu promotes countryside living; Calis Beach is famed for its promenade and gorgeous sunsets, while Hisaronu and Ovacik are near Oludeniz and Blue Lagoon.
BODRUM PENINSULA: Market trends for luxury homes always factor in the Bodrum peninsula. Places like Yalikavak, Turkbuku, and Torba attract wealthy individuals and mega yacht owners. Gumbet is a beachfront destination, while places like Gumusluk and Gokcebel seem lost in time.
Use Our Services
As real estate agents in many areas of Turkey, we save time and money with our house-buying services. From the purchase price to property values to aspects of buying property and destination information, call us today and chat with an agent about whether buying property in Turkey is a good investment.
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