Ah, Foreign buyers love real estate in Turkey. With an average of 50,000 people making a real estate investment every year, they boost a housing market that has transformed over the last 20 years but still has much to offer. Buyer’s reasons for real estate investment vary from rental income to ideal prices, capital appreciation, Turkish citizenship, or simply owning a home in a luxury complex for a second lifestyle.
Regardless of your reason, the market still takes careful navigation to ensure an excellent investment. While many buyers purchase property according to their dreams of a life abroad, we always say invest wisely to maximise your return. So, with that in mind, here are the pros, cons, common questions and tips when buying.
About Real Estate Investments in Turkey
1: PRO: Geography and Tourism
Turkey's location, sandwiched between Europe and the Middle East, has solidified its position as a crucial real estate market over centuries. In modern years the economic success that has risen from Turkey's unique position has been encapsulated in its largest city, Istanbul, a centre for business and property development that shows no signs of slowing.
Moreover, Turkey's incredible Aegean and Mediterranean coastlines attract visitors worldwide, making Turkey the third most popular tourist destination. In addition, Turkey's unique coastal geography is becoming popular, with sailors keen to explore the country's 8000 kilometres of coastline. Owning Turkish real estate taps you into a wealth of places to explore and a healthy tourism market from Istanbul to the Aegean and Med.
2: PRO: Reasonable Prices
Unlike other parts of the Mediterranean, it's still possible to buy a large family home near the sea for low prices. A far cry from comparable areas in France or Spain, where properties are two or even three times as much. Property prices have risen steadily over the past decade, which has paved the way to a healthy resale sector, not to mention some very healthy capital gains for buyers past and present who recognise the price value of investing early, especially in certain places of Istanbul.
3: PRO - Healthy Rental Market
Many property buyers supplement their investments by renting holiday homes that net a reasonable price. The summer season is a long one in Turkey, and with careful marketing, the average holiday home will be in high demand. The home-away-from-home phenomenon of holidaymakers eschewing hotels in favour of more comfortable self-catering accommodation has taken Turkey by storm. As a result, high-spec, unique properties are especially in demand. In Antalya City and Istanbul, rentals are slightly different. Investors often buy apartments they rent out to the many young professionals moving to the prosperous city for work each year. As a result, these investors earn a steady, reliable income independent of season and price.
4: CON: Flight Times
Investing in properties and travelling to Turkey takes a specific commitment. While foreigners can fly from London to Nice or Malaga in around three hours, a flight to Antalya, Bodrum or Fethiye is about five hours. For some, it's a little far. For others, it's not an issue. However, key management is essential for foreign investors of properties who are not in Turkey often. One positive, however, is that there are now more flights to Turkey than ever before, even during the off-peak months of December and January.
5: CON: The Language Barrier
English speakers are notoriously poor at learning the lingo of the countries we visit, and the Turkish language is not the easiest to understand. In the main centres, most people you will need to deal with - bank tellers, stallholders, hoteliers, servers - are perfectly adept in English. But once you head to the more remote villages and away from the coast, you'll find it difficult to communicate unless you know a few Turkish words - or are particularly adept at using gestures. However, when you buy property, Turkish law states you must have a translator. Many foreigners buy property in places where foreign languages like English are widely spoken. There are ways around this downside to a second home in Turkey.
6: Tips for a Good Investment
Location Research: To maximise your liquidity when you want to sell, local and country research are essential. Check local facilities and amenities around any apartment or villa you plan to buy. Remember, luxury homes don't have value if the surrounding locations aren’t also luxury. Find out if there are any future construction plans in surrounding areas. Some, like schools and malls, add value to a property. Others, like nightclubs and bars, don't. Some might also block that sea view that property buyers purchasing real estate pay extra for.
Apartment Complex: If you plan to buy an apartment in a building or villa on a complex with eight or more dwellings, they must have a management plan to fund the cost of all communal facilities like a swimming pool and hallway electricity. The management committee also needs to carry official books on how they spend money year-round, as every apartment owner will pay monthly fees. This is the country-wide Condominium law of Turkish real estate.
Interest Rates on Turkish Mortgages: Sometimes buyers want a Turkish mortgage for purchasing real estate. This is one option but check out the current and future interest rates. They can sometimes be quite hefty. Many real estate buyers in the country have often opted for the long-term payment plans of Istanbul developments instead.
7: The Turkish Citizenship Investment Programme
The Turkish government operates a scheme where investors can buy property for $400,000, pledge to keep it for three years and apply for Turkish citizenship. Please note that the property purchase is separate from the citizenship application procedure. Additionally, the real estate citizenship scheme and free passports only apply to government-approved properties, most of which are in Istanbul. More about Turkish citizenship by real estate investment.
8: Where to Invest in Real Estate in Turkey
Istanbul City: Ah, Istanbul on the European side and Asian side, the hub of the Turkish real estate market. Most buyers look at the financial gain and purchase real estate here. The main reason is the large lifestyle complexes with onsite facilities constructed on the outskirt European side of Istanbul. They offer the best real estate deals with 0% interest, off-plan property for sale prices, and long-term payment plans. In addition, many citizenship-approved properties are also in Istanbul.
Antalya Region: For investment, Antalya comes a close second. Located on the med coast of Turkey, the region separates into smaller resorts and includes the main city centre, which is a hotbed to invest in. The region offers different sale prices for budget, and places like Belek have themed properties like golfing. These days, the Altinbas area is prime for apartments for sale because supply in the Lara beach and Konyaalti regions are limited. Apartments for sale in Antalya located near beaches make ideal holiday homes in Turkey and always offer good capital appreciation.
Fethiye: Investment in this part of Turkey remains a favourite because of affordable prices. Whether you look at a house in Calis beach or apartments in the town centre, the region offers an ideal investment for long to midterm periods. Properties in this part of Turkey mainly sell to ex-pats and those desiring a holiday home. Still, with careful navigation, you can purchase a good home for your real estate profile.
More About Investment Property in Turkey
Property For Sale: To find out more about property in Turkey for investment, see our portfolio of apartments and houses for sale. Listing new developments, key-ready properties and off-sale homes in many areas of Turkey, each listing contains everything to know, including contact details to find out more via telephone, email or to arrange house viewing trips in Turkey.
Real estate investment worldwide always carries a specific risk and should be entered into on a case-by-case basis for value. Real estate in Turkey is no exception. If you want to know more about investing in Turkey, places like Istanbul, or the Turkish citizenship programme, please contact us. Alternatively, drop into any of our offices in Istanbul, Bodrum, Fethiye, or Antalya and chat with a local agent about how to invest in Turkey wisely.
Property Turkey offers the one-off opportunity to invest in luxury Trump Towers apartments in Istanbul Sisli below market value. We have apartments available from 1 - 4 bedroom. Call us + 44 (0) 20 8371 0059 to discuss latest availability and prices.