Investing in Turkey
Read this article before investing in Turkey.
Real estate in Turkey is very popular with foreign buyers. An average of 50,000 people invest in real estate annually, boosting a market that’s undergone many changes but still has a lot to offer. Many people invest in real estate for various reasons, like rental income, excellent prices, capital appreciation, Turkish citizenship, or having a second home.
Even if you’re investing for a reason, navigate the market carefully. Most buyers buy properties to live abroad, but we always say to invest wisely to maximize your return. Here are some pros, cons, common questions, and tips you should consider before purchasing.
Investing in Turkey’s real estate
Geography and tourism
Located between Europe and the Middle East, Turkey has been a crucial real estate market for centuries. In recent years, Turkey has benefited from its unique position in terms of economic growth, encapsulated in its largest city, Istanbul, a thriving business and real estate center.
Turkey’s incredible Aegean and Mediterranean coasts also draw visitors from all over the world, making it the third most popular tourist destination. Many sailors are also interested in exploring Turkey’s 8000 kilometers of the coast because of its unique coastal geography. From Istanbul to the Aegean and Med, Turkish real estate offers a wealth of things to do and places to explore.
Affordability
A large family home near the sea can still be bought for low prices here, unlike other parts of the Mediterranean. It’s way cheaper than comparable areas in France or Spain. There’s been a steady increase in property prices over the past decade, paving the way for a healthy resale sector and some healthy capital gains for investors past and present, especially in certain neighborhoods of Istanbul.
Good Rental Market
Holiday homes rent reasonably, so many property investors supplement their investments. Turkey’s summer season is long, and with a little marketing, your average holiday home will be in high demand. Home-away-from-home holidays have taken Turkey by storm, with holidaymakers preferring self-catering over hotels. Due to this, high-end, unique properties are in high demand. The rental market in Antalya City and Istanbul is a little different. Many young professionals move to the prosperous city for work each year, so investors buy apartments and rent them out. Because of this, these investors have a steady, reliable income no matter what the market does.
Flight Times
Traveling to Turkey and investing in properties take commitment. Compared to London to Nice or Malaga, a flight from London to Antalya, Bodrum, or Fethiye takes about five hours. Some people think it’s too far. It’s not an issue for others. If you’re not in Turkey often, key management is important for foreign investors. There are now more flights to Turkey than ever before, even during off-peak months like December and January.
Barriers to communication
Compared to other languages, English speakers have a hard time learning the language of the places they go. It’s easy to communicate in English in the main centers – bank tellers, stallholders, hoteliers, and servers. In remote villages away from the coast, you’ll have to communicate if you know a few Turkish words or how to use gestures. In Turkey, you must have a translator if you’re buying property. Foreigners often buy property in places where English is widely spoken. Turkish second homes have some downsides, but there are ways to overcome them.
What you need to know about investing
- Local and country research are essential to maximizing your liquidity when you’re selling. Check out the amenities and facilities around any apartment or villa you’re considering. Luxury homes only have a little value if the surrounding area isn’t luxurious. Find out what’s coming up in the surrounding areas. Some areas add value to a property, such as schools and malls. Other establishments, such as nightclubs and bars, do not. Property buyers may also be prevented from enjoying the sea view for which they are willing to pay a premium.
- There’s a requirement that all complexes with eight or more units have a management plan for funding all communal amenities like swimming pools and hallway electricity if you’re interested in buying an apartment in one of those buildings or villas. Because every apartment owner pays monthly fees, the management committee has to keep official records. This national condominium law governs Turkish real estate.
- Rates of Turkish mortgages: Purchasing real estate can sometimes require a Turkish mortgage. Consider this option, but be sure to check the current and future interest rates. You might have to pay quite a bit for them. Many real estate buyers in the country often prefer the long-term payment plans offered by Istanbul developments.
The Turkish Citizenship Program
For $400,000 Turkish investors can buy property, pledge to keep it for three years and apply for citizenship. Property purchases are separate from citizenship applications. As a bonus, you can only get a free passport if you buy a government-approved property, mostly in Istanbul. Learn more about Turkish citizenship through real estate.