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, 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?
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?
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