BUY REAL ESTATE IN TURKEY
BUY REAL ESTATE IN TURKEY For overseas property investors, real estate in Turkey is the globe’s latest golden egg. In 2018,
the country clocked up record house sales to foreigners of many nationalities including Germans, Russians, Brits, and Middle-Eastern countries.
They bought 40,000 apartments and villas in property hotspots like Istanbul, Antalya, alanya, Bursa, Yalova and the Aydin region.
Real estate agents across Turkey were busy as enquiries flocked in, and the trend shows no signs of letting down in 2019.
When comparing year-on-year monthly figures, stats are already 50% up, proving that for foreigners, the Turkish housing market is just too much of a lure.
However, why are they are flocking here and what can property buyers expect to see for a return on their investment?
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Real Estate in Turkey Why Buyers are Investing
BUY REAL ESTATE IN TURKEY To be clear, Turkey has been a popular international destination for foreign home ownership
since the turn of the century.
In 2013, real estate sales further took off when the government dropped reciprocal causes requiring Turks to buy property in other countries. However, last year’s boost was because of two reasons.
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First, the Turkish lira took a nosedive, so all of a sudden,
foreigners had more Turkish lira for their foreign currency than ever before.
Second, Turkey dropped its citizenship by investment scheme entry level from 1 million USD to $250,000.
The only condition is that property owners keep it for at least three years, and these two factors are driving foreigners to invest in freehold properties.
Property Investment in Turkey
Without a doubt, market conditions are in the buyer’s favour, but anyone searching through investment properties to increase their financial net worth and assets needs to look at this as a long-term endeavour.
You won’t get rich overnight, because now, is not the time to be flipping houses since Turkey’s real estate portfolio is abundant with lots of properties on the market.
Neither is the time to be buying old homes with an aim to renovating them and selling for a profit,
because off-plan and new build constructions out price this style of housing by as much as 50%.
Another factor is that while foreign sales are forging ahead to record numbers
, domestic sales also play a large part in determining the state of the market, and these have slowed down because of mortgage interest rates.
While house prices aren’t expected to drop, the economy won’t give lucrative returns within a short space like two years.
Many real estate investors are instead looking at their purchase as a long-term endeavour of at least five to ten years and enjoy using it as a second home in summer.
Where Do Foreigners Buy in Turkey?
As with any real estate market, specific destinations emerge as favourites for foreigners, and in Turkey, this is the Aegean, Mediterranean, Marmara and North-East regions.
The coastal areas are established foreign property hubs that attract buyers looking for a summer holiday home or future retirement destination.
Communities with already established expat populations include Altinkum, Bodrum, Marmaris, and Kusadasi to name but a few. However, three regions are leading the real estate industry.
Istanbul: This isn’t a surprise because despite not being the capital city,
Istanbul is the hub of everything and anything including business, economy, finance, tourism, education, health and medical care. So, it makes sense that its real estate sector is the most active in the country.
Some investors look towards apartment building projects in key areas like where the planned Istanbul canal route will be, while other homebuyers are tapping into a market that is reinventing itself.
New build constructions in outskirt districts like Avcilar, Buyukcekmece, Bahcesehir and Kucukcekmece
are putting properties within buyers reach by offering them affordable prices,
and new built modern homes that just weren’t available ten years ago, while the market was stagnant and outdated.
Antalya: Covering a large part of the Mediterranean coast, the Antalya region presents a delightful choice of locations to buy in, from the golfing capital of Belek to the city centre with its two famous beaches considered the best in Turkey.
Antalya is the second most popular region for international tourism and foreign house buyers
with districts like Mahmutlar in Alanya emerging as firm favourites.
Bursa: To much surprise because foreigners rarely bought there, Bursa has forged ahead as a popular destination.
Belonging to the Marmara region, brand new project development and affordable prices per square meter are responsible for its new found fame.
Bursa also offers many lifestyle choices from the city centre urban vibes to green landscapes in surrounding districts
to the thrill of Uludag mountain, that in winter is a top skiing destination.
How Much is Property in Turkey?
BUY REAL ESTATE IN TURKEY Property prices from region to region.
The bottom of the market revolves around destinations like Aegean Altinkum, the Mudanya district of Bursa, and the Esenyurt district of Istanbul.
Homes on the Bosphorus strait of Istanbul are the country’s most expensive with many millionaire mansions on the market.
Heading south down the Aegean coast, Yalikavak’s portfolio has shot to luxurious status over five years,
as millionaire villas dominate the market.
The sole reason was the opening of the mega-yacht marina that attracts sailors and high-profile clientele from all over the world.
It is not unusual to see British celebrities or Middle Eastern princes holidaying in the region.
Kalkan, in Mediterranean Turkey, also commands a high-profile status through its portfolio of investment property featuring the latest in stylish architecture and home technology.
Investors looking for a buy-to-let home for rental income also flock there because of high rental yields.
Real Estate for Sale in Turkey
BUY REAL ESTATE IN TURKEY Ten years ago,
Turkey didn’t make it easy for foreigners to buy homes but, those days are over, and now, a streamlined process with set steps and guidance
means you can hold your keys and sign for the title deeds within as little as two weeks.
Once you have found the home you want to buy, you and the seller will sign a contract listing key points of the sale including the payment plan.
Foreigners don’t have to use a solicitor, but we recommend you do,
because they will carry out the legal applications and checks.
What should foreigners do to buy property in Turkey?
Foreign nationals can buy real estate such as residence, office, land, field etc. in Turkey provided that they respect the restrictions specified in the law. If the foreign national is to buy a land or field, he/she is obliged to inform the Ministry of Environment and Urbanism within 2 years about the type of the building to be built on that land or field.
What are the restrictions in buying property for foreigners?
BUY REAL ESTATE IN TURKEY In accordance with the related law, following restrictions apply to buying property by foreigners:
- A foreign national can buy maximum 30 hectares of property in Turkey in total.
- A foreign national cannot buy property in military forbidden zones and security zones. Renting a property in these zones is only possible with special permission.
- Foreign real persons can buy property up to 10% of the total area of the district where private property is located.
- Properties which are determined by legal authorities not to be used in accordance with the purpose of purchasing and properties which are not notified to the Ministry of Environment and Urbanism within 2 years although they were purchased for building a construction may be subject to winding up by official authorities.
- For companies with legal entity which are established in accordance with the laws in their own countries, abovementioned restrictions shall not apply.
What is the procedure to be followed for buying property?
A preliminary application should be made to the Land Registry Directorate. It is required to take a sequence number for preliminary application. For this, you can call 181 or make an application at https://randevu.tkgm.gov.tr/.
Following preliminary application, a date is determined for the transfer transactions between the seller and the buyer.
Following documents to be prepared within the day determined:
- Title deed of the property
- Passport of the foreigner who will buy the property and photocopy of the passport (Turkish translation of the passport may be required)
- “Property Value Statement Document” to be provided from the relevant municipality
- Compulsory earthquake insurance policy for the buildings such as house, office, etc.
- 1 photo of the seller, 2 photos of the buyer
- Certified translator if the buying foreigner cannot speak Turkish
- If the transfer transaction is carried out with a power of attorney prepared abroad, the original or certified copy of the power of attorney (Turkish translation of the power of attorney is required).
Other Points to Be Taken into Consideration
You must learn if there are any restrictions on the property such as mortgage, lien, etc.
You can get necessary information from the Land Registry Directorate.
Residence permit is not required to buy property in Turkey.
Working with professional consultancy companies specialized in buying property will always be in favour of the buyer. For that reason, we recommend that you should get assistance from consultancy companies specialized in buying property. We offer private consultancy services in this matter
5 tips for Buying Real Estate in Turkey
DO NOT BUY REAL ESTATE IN TURKEY BEFORE READING THIS INFORMATION!
There are few purchases in life that bring as much pleasure as buying a new house, especially if this house is located abroad. Although you are familiar with the way property purchases work in your country, you should also know that the same does not apply to buying in another country. If you are reading this blog, you are probably thinking of buying property in Turkey, and it is good that you do your homework properly before taking the next step! Although buying property in Turkey is fairly simple and straightforward.
1-Important Documents for buying property in Turkey
First of all, you should always keep in mind that buying property in Turkey naturally requires some documents. So it is best to know which of them are the most important:
This is the first and probably the most important word that you should learn and understand before buying property in Turkey. This document is the only piece of paper confirming that you have the ownership of real estate in Turkey. No tapu, no property. Always, always request a copy of the TAPU of any property you choose to buy. The owner must and technically must provide you with a valid copy of the TAPU.TAPU – (Certificate of Ownership)
ISKAN – (Certificate of Residence)
Iskan is a certificate of the right to housing, issued by local authorities, where the property is located, which allows you to start life in the complex. If the developer cannot provide you with documents confirming that Iskan was provided (although the complex is fully completed and looks great for living), this simply means that the complex is not exactly completed.
What happens if ISKAN has not been provided?
In this case, utilities, such as water, electricity and gas, can not be connected to the complex!
Important note: The certificate of settlement can be issued only for completed projects, so do not be afraid if the developer cannot show you it, if the property you want to buy is under construction
YÖNETİM & AİDAT – (Management Fee and Management)
No matter what kind of property you buy in Turkey, no matter how attractive or affordable it is, always make sure that property management (Yönetim) is or has been created. And, of course, do not miss the management fee (Aidat) to avoid any surprises in the future.
YAPI RUHSATI – (Building License)
If you are going to buy a building object or real estate under construction in Turkey, be sure to ask for a building permit.
These are just a few of the main keywords that are enough to get you started to make sure that you are making a safe purchase.
You may have a very good knowledge of the location, you may have been there many times for holidays (or business), but when it comes to buying real estate, you now open the door to a completely different life. When it comes to buying property not only in Turkey, but throughout the world, it all comes down to choosing the right location. You may think that you have finally found a suitable property for yourself, but by starting to live in it, you can quickly find that the location is completely wrong, which will inevitably make your life more difficult than expected.
There is no single definition of the right location, which ultimately comes down to what you want and want to own in and around your property. Have a good idea of what matters most to you, and make the appropriate decision.
To make sure that you are comfortable with this place, just ask your agent to take some time and visit the nearby neighborhood of the complex. Does public transport matter to you? Ask to see exactly where it is … Do you need a pharmacy nearby? Go and see where it is .. Or maybe shopping is what matters most to you? This is a great opportunity to go and visit the nearest shopping centers around … Do you want easy access to the beach? No problem, just ask for it, and our agent will be happy to take you there.
Regardless of how beautiful the property may look from the inside, if the complex does not have effective management, we recommend that you think again before buying property. In fact, in Turkey there are several very effective rules regarding how management should be established (in fact, it is a mandatory part of building a project), as well as how to run it. However, especially in smaller cities, effective management may take some time before it becomes truly useful.
If you buy property in Turkey like Alanya or Bodrum, always ask if management (management) works. To make sure you get the right answer, you can request the latest Board meeting report. The report may not be available at the time of the request, so the trick is to spend some time checking the place cards, usually at the entrance to the building. Since most, if not most property owners from other countries, with a valid government board, you will almost always compile management reports and information notes on these boards in both Turkish and English, which should give you an idea of the administration.
And what if you buy property in the project or under construction? How to make so that in your future complex was an effective management?
4- how pay for the property
Now you are sure about the the legal documents, and the property and location, to what you want. It is time to agree on a price and more importantly, how you will pay for it.
If you are buying a finished apartment ready to move in, the ideal payment plan might look like this:
Payment of the deposit at the time of approval:
This is a payment made only to make sure that the property you are buying is taken out of the market. Usually ranges from 2% to 5% of the agreed buying price. This payment, unless agreed otherwise with the Seller, is usually non-refundable.
The balance of payment for the delivery of documents:
Delivery of documents, depending on where you buy the property in Turkey, can take from 2 days to 2 weeks. Make sure that your funds are ready on the day of delivery of the document confirming the ownership (TAPU in Turkish), without money the Seller will not agree to sign the final documents.
If you are buying unplanned OR property under construction, the ideal payment plan might look like this:
In this part, you will negotiate a payment plan based on a monthly, two-month, or three-month payment. Usually sellers are open to offers and leave room for options with which contributions are paid. Obviously, the ideal option would be to leave some time between payments, which in turn will give you the opportunity to monitor the construction progress and, if things are going slowly, stop and reconsider the payment plan, if you feel that this is necessary
Always leave some final payment when the Seller has completed the project and is ready to provide the title deed. Never forget that there is no single ideal payment plan, and that the payment plan is in fact a negotiation tool. One tariff plan may well suit one type of Buyer, but it is completely useless for another. So, to make a perfect plan, it all comes down to how you negotiate a purchase.
5- If you do not feel that you yourself are a local expert, we strongly recommend that you always be helped by a local expert who will help you and guide you through your buying, avoiding mistakes that you will painfully regret in the future.
We have more than 10 years of experience, helping more than 1000 clients from all over the world to buy property in Turkey, and, naturally, we have in-depth knowledge of each of these points mentioned above and many others. So, if you are planning to buy your dream property in Turkey, just contact us and let’s talk. We will listen to you, understand what you want, and look for the best options to offer you. Finally, we will make sure your purchase is stress-free, risk-free and as enjoyable as it should be!