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If you want to know why to invest in property in Turkey, prepare for a vast list. Turkey is a transcontinental country that bridges Asia and Europe. Its capital city is Ankara, whilst the largest city and most vibrant real estate market is Istanbul. With a population of approximately 84 million and a high proportion of that being young and upwardly mobile, Turkey's strategic location easily attracts foreign buyers and real estate investors.
The Turkish real estate market has grown tremendously in the last two decades. The increase and appetite for foreign investors in real estate, motivated by various reasons, including real estate prices, has accelerated holiday homeowners and wannabe expats. Several laws have been amended to ensure buyers' financial safety, and these amendments have stimulated the competitiveness of the Turkish real estate sectors.
Dynamic demographic factors have also made Turkey increasingly become the choice for foreign investors interested in setting up businesses and purchasing real estate. Indeed, Turkey has internationalised and institutionalised the sector while putting transparency and high-quality standards in property transactions. But let's consider why Turkish property is a good investment and why you should hire us as your real estate agent.
Reasons to Invest in Property in Turkey
Urban regeneration projects in major cities
Alongside reasonable property prices, urban regeneration projects in major cities nationwide are among the main factors that encourage domestic and international residential property sales. Although places like Trabzon, Bursa, and Ankara have seen many developments, significant changes have occurred in Turkey's key city, Istanbul, which leads the Turkish property market with the most significant number of buyers. As well as offering affordable prices to buyers, the projects have changed the towns' landscapes, getting rid of old, ugly housing to be replaced with more aesthetically pleasing developments.
Building construction standards have also changed to meet modern homes' demands and withstand natural disasters. Many international investors have headed to the outskirt districts of European Istanbul for profitable investment in significant developments. These areas are also where the new Istanbul International Airport opened, and many developments improved roads and transport networks. Hence, urban regeneration extends into residential property and infrastructure.
Diverse Turkish Economy
Turkey's mixed economy combines modern industry, commerce, and traditional agriculture sectors. That makes the country one of the largest economies in the world. Although still classified as an emerging market, Turkey has experienced periods of robust economic growth, however, growth rates vary yearly depending on domestic and global factors. The industrial sector in Turkey includes manufacturing, construction, and technology, and service sectors, including tourism and finance, also plays crucial economic roles.
Inflation rates concern the Turkish economy, but the country's central bank implemented various monetary policies to manage inflation and stabilise the currency, and Turkey actively seeks foreign direct investment (FDI) to support economic development and make the country a strong economy. The government implemented reforms to improve the business environment and attract foreign investors, and despite the recent inflation problems, Turkey is still classed as having a stable economy, with accessible markets largely thanks to the 20-year vision plan laid out by the government in 2003.
Easy Buying Process, Costs and Safe Investments
Besides excellent exchange rates, foreign buyers love real estate investments in Turkey because the Turkish government made buying incredibly easy and cost-effective. The buying process easily outranks many European countries regarding ease, simplicity, time, and closing costs. Foreign investments into real estate can be completed in as little as a week if all documents and finances are ready.
Real estate buyers can be homeowners in next to no time, and reasonable prices for taxes, fees, and costs that contribute towards the buying process are also a fraction of what is seen in other countries. Given the fast process, one would think there are loopholes in the law for swindlers. Still, buyers can confidently safeguard their investment if they follow the rules and regulations. All they have to do is open a Turkish bank account, get a tax number, convert their foreign currency into Turkish currency and follow the procedures. (More about how to buy property in Turkey.)
Trends of the Turkish Housing Market
The Turkish market started about twenty years ago, with attractive investment options. Before that, the domestic market was virtually non-existent due to poorly available mortgages. Access to markets for foreigners was also poor, thanks to outdated regulations. Fast forward twenty years, and we see diverse housing markets across Turkey, and foreigners have easy access to markets without jumping through hoops. Across Turkey, there are general trends.
Even though housing prices are the highest in the geopolitical location of Istanbul, this is the top destination for domestic and foreign sales. Many developments offer pre-launch prices at off-plan stages, with 0% interest-free payments over long terms. This gives investors much potential for saving money.
Expats and holiday homeowners tend to head to the Aegean and Mediterranean coasts, where reasonable property prices mean they can tap into the gorgeous coastal resorts with sun, sea and sand lifestyles. This is also where Turkish retirees like to buy property. In these resorts, the trends diversify even more. Some specialise in apartments, while others, like Kalkan, promote large, luxurious villas. Regardless of where you go, excellent property prices and diversification of housing types across Turkey present many investment options. (See property for sale in Turkey.)
Turkish Citizenship by Investment Program
Over the years, the Turkish government has offered many incentives to buyers, one of which is the Turkish citizenship program, which is the most popular. International buyers can apply for Turkish citizenship through property acquisition of minimum investment into designated government-approved investment projects. Prospective buyers tap into several benefits of this beautiful country, including excellent cost of living, smooth and efficient transportation networks, sandy beaches, other lucrative incentives like a Turkish passport, and the right to live and work in Turkey. The one stipulation of the citizenship by investment program is buyers keep the property for at least three years.(Find out more.)
Benchmarking Turkey to France, the UK, Russia, Greece and the US
Comparing Turkey to other developed and emerging countries can give you an in-depth analysis of why Turkey is ideal for real estate developers and individual overseas property buyers. UK, US, France, Russia and Greece are some countries that compete with Turkey for investment opportunities. Turkey has strong banking regulations in the finance and banking sector, while Greece has the least. Turkey is also ahead of France and Russia and slightly below the UK regarding finance, banking regulations, and skilled workforce. This brings higher investor confidence and supports foreign direct investment.
Turkey also has the best banking sector and finance human resources skills compared to the BRICS (Brazil, Russia, India, China and South Africa). Most of the population is the youth; they are well-trained in various sectors and have strong technical skills. Turkey also leads in Globalisation, Flexibility and Adaptability compared to the US, Russia, France and Greece. It opened its doors for other countries to invest, enabling Turkey to get more foreign capital and direct investments.
Indeed, doing business and buying real estate in Turkey is easier when compared to the US, Russia, the UK, and Greece. The New Turkish Commercial Code (New TCC) made registering a company and starting a business accessible. That is more lucrative than in the US, France, Greece, Russia and other EU countries. The Republic of Turkey made all efforts to ensure real estate investors participated in and supported growth. You are likely to generate a higher return on investment in Turkey than any other country in the EU and most other countries globally.
Popular Destinations to Invest in Property
Bustling Istanbul: Istanbul's real estate market is a shining example for other Turkish cities. Turkey's economic and cultural hub, Istanbul city centre, easily attracts domestic and international investors seeking diverse property opportunities, and the city's real estate landscape includes modern apartments, historic residences, and commercial properties. Istanbul's strategic location, connecting Europe and Asia, contributes to its appeal. At the same time, ongoing urban renewal projects and infrastructure developments continue to reshape the city's skyline. The demand for housing in Istanbul's city centre is driven by population growth, urbanisation, and the city's role as a global business and tourism destination. The market has witnessed fluctuations in property prices, influenced by economic conditions, government policies, and overall market dynamics, but real estate sectors reflect tradition and modernity, offering several options for various preferences and investment strategies. Without a doubt, Istanbul is the king of all significant cities in Turkey, and this is where many decide to invest.
Cultural Bursa: For Middle Eastern buyers, Bursa is a popular destination. Anyone looking at residences for sale can enjoy year-round atmospheres, thanks to the Uludag mountain, a popular skiing hub in winter, and an outdoor playground for the rest of the year. The central location of Bursa attracts many tourists with the UNESCO Sites dating from the Ottoman era, and prices are much lower than Istanbul, making it an exceptional investment opportunity. Given the nickname, green Bursa, and cultural heritage, the area is ideal to invest in holiday properties or something mid to long-term that shows much appreciation potential. Bursa is an all-rounder offering historical sites and natural beauties. The popularity speaks for itself, from contemporary apartments to luxury villas to business opportunities.
Modern Izmir: Many foreign nationals head to Izmir to live and work; Turkey's third-largest city is another hub of business and real estate investment. Despite this status, the cost of housing is a fraction of Istanbul and offers lower living costs. There is much potential for investment properties, from luxury residences to condo housing. Although the city centre is attractive, many coastal resorts with beautiful beaches are short bus rides away. Places like Alacati, where properties earn top rental incomes, command fame and admiration because of historical connections as an old Greek village.
Antalya Region: With average property costs, the Antalya region is the number one spot for holiday home sales and expats. Properties for sale range from the luxury villas of Kalkan to golfing homes in Belek to studio apartments in the city centre. One key factor in Antalya's favour is that it is the number one destination for beaches, affecting many people's investment decisions. A luxury apartment will offer those fantastic sea views. In contrast, more affordable properties inland are also the gateway to the Taurus Mountain range. For more affordable purchase prices, head to the outskirt districts like Alanya or Side; otherwise, places like Konyaalti offer the ultimate beachfront luxury properties.
Fethiye Region: Real estate buyers love this region of southern Turkey that easily outranks European countries for beauty. As well as beautiful beaches, many properties make the ideal investment, especially for people looking for rental incomes because of the vital tourism trade. Additionally, many foreign nationals live in the Fethiye region, which offers a central location for Mediterranean living. The city centre is the sailing, shopping, and transport hub. In contrast, places like Calis Beach, Hisaronu and Ovacik attract many looking to buy villas. The inland community of Uzumlu also attracts strong expat communities. In contrast, the outskirt district of Gocek is a sailing hub known for luxury living. Dalaman Airport easily accesses Fethiye, making this a favourite for foreign buyers.
Bodrum Region: Another famous region for foreign nationals is the Bodrum peninsula on the Aegean coast. Turkey is ideal for leisure and pleasure, but Bodrum takes it to another level. Golturkbuku has earned the nickname of the Saint Tropez of Turkey. Yalikavak often sees the odd mega yacht owned by billionaires or Saudi royalty dropping by. Bodrum city centre is another sailing hub, whereas nearby Gumbet accommodates budget travellers and real estate buyers. Rustic charm shines through in villages like Gumusluk, while Gundogan maintains traditional Turkish ambiences. The peninsula's own airport means getting to all resorts is easy.
Use Our Services
If you want to make international investments in real estate, Turkey could be just the country for you. As you have seen above, many reasons exist to invest in property in Turkey. As a proven destination for property investment, we can help you. Choosing a seasoned real estate agent is the key to rewarding property acquisitions in Turkey, and here's why our services stand out.
Our experienced team brings in-depth knowledge of local dynamics, helping you make informed decisions. We offer properties tailored to your preferences and investment goals, from bustling urban centres to serene coastal retreats. Our network extends beyond property listings; we connect you with legal experts, ensuring smooth transactions and insights into market trends, allowing you to make strategic decisions.
With commitments to transparency and client satisfaction, we prioritise your unique needs, making acquiring your dream property in Turkey not just a transaction but a personalised, stress-free experience. Contact us, and trust us to turn your property aspirations into a reality, and let the expertise of our real estate professionals guide you into investing in Turkish property.
