For international property investment, the market is awash with opportunities. From the five-star golfing villas of Portugal to a quaint townhouse in Spain to a luxurious beachfront apartment in the USA. Any real estate investor knows meticulous research is essential to turning your investment into a profitable one. Trends, forecasts, and location hotspots are just a few of many factors to consider.
It is for these reasons Turkey lures in many investors from overseas. Do not just take our word for it. The statistics speak volumes. In 2019, foreigners purchased 45,500 houses. This was a 14.7% increase year on year. Its most prominent city, Istanbul property led the way with just over 20,000 sales, followed by the Mediterranean Antalya region, capital Ankara, and north-western Bursa.
Nationalities of buyers included Iraqis, Iranians, Russians, Brits, Germans, and other European and Asian people. So, as you can see, Turkey delivers the goods, whether this is the Turkish Citizenship by investment scheme or capital appreciation potential, buyers are coming in thick and fast. Let us look at why the country is a hot spot for investors.
International Property Investment: Why Consider Turkey
1: Affordable Prices
At the turn of the century, Turkey embarked on a significant plan to reinvent its real estate market. Banks gave loans to developers and construction firms to build, new housing, and introduced mortgages for Turks, and opened the market to foreign buyers. The aim was to turn it into a billionaire industry, and this has been achieved.
However, in some towns, an abundance of housing is keeping prices down. The Mahmutlar neighbourhood in Mediterranean Alanya is one such example. Attracting many families of various nationalities but especially Europeans, the council has invested millions into its infrastructure. For a long to mid-term investment, it provides plenty of scope for capital appreciation and thanks to its beachside location, buy-to-let potential.
2: Property Listings in Abundance
An abundance of property in many locations keeps prices down, and this is another advantage for investors who have more to choose from. Many resale properties are on the market, but given the minimal return, many investors instead choose off-plan or new build homes. One desirable location where off-plan developments are in the limelight is European Istanbul.
Mass expansion and investment into infrastructure are happening on the outskirts. Most of these take the form of lifestyle residences. With studios, apartments and duplex penthouses for sale, residents also tap into a wide range of communal facilities including swimming pools, landscaped gardens, on-site gyms, saunas and more. One reason they attract investors is the long-term payment plans lasting anything up to 5 years that comes with 0% interest.
3: Internationally Connected
Turkey has poured billions into transforming its roads and highway. One such example is the Istanbul to Izmir highway that opened in 2019 and cut the travelling time down. Examples of seaport projects include Konyaalti marina over in the Antalya region, and a planned cruise ship port to attract international visitors.
Perhaps its most prominent investment though is the new Istanbul airport. Sitting in the northwest on the European side, when complete in 2027, it will be the world’s biggest air hub hosting 150 million passengers every year. As well as having the world’s most significant duty-free area, cargo companies will handle millions of tons of packages every week. So, for foreign investors, getting here all year round is easy.
4: The Tourism Industry
Turkey’s tourism industry is on the list of the top ten most visited countries in the world, but they are not prepared to rest on their laurels. They want to achieve a top-three position. This fairs well for buy-to-let investors who want a rental income but also anyone buying in the Aegean and Mediterranean resorts, of which some towns rely on tourism for their primary source of income. Connecting flights, tours, and attractions, and a diverse range of shops, restaurants, and bars all, add to the variety of life. Such is the lure of these places, many buyers who bought holiday homes, also retire out here in later years.
5: The Buying Process
Look at some countries, and you will find a long drawn out buying process, held up by red tape and with many hurdles to cross. Turkey bucks that trend to provide a quick and easy process with minimal paperwork and little costs. While legal law does not require the use of a solicitor, we recommend you do, and if your finances are in place, you can receive your deeds and put your keys in the door in as little as three weeks. Everyone can buy, because there are only restrictions on five nationalities. Read about how to buy property in Turkey here.
6: Citizenship by Investment Scheme
If you have more than $250,000 to invest, consider the Citizenship by Investment scheme. This will entitle you, your spouse, and children to apply for Citizenship, and full rights to live and work in the country. The only requirement is that you must keep the property for at least three years, and an independent valuer must determine the value. Without a doubt, Turkey outranks other countries for golden visa schemes, not only in affordable but also the straightforward application process. Read more about it here.
So, as you can see, Turkey presents a lucrative opportunity for international real estate investors, but which areas show the most promise for investors and why? If Investment is your only reason for buying, consider European Istanbul.
Istanbul: Neighbourhoods, around the basin express route, new Istanbul airport and planned canal route are showing the most appreciation and will continue to do so. The advantage of Istanbul is that many developers offer long term payment plans of up to 5 years, and they do not have interest. Add this to the discounted prices of off-plan property, and this is a lucrative opportunity. Read about investing in Istanbul.
Bursa: Many Middle-Eastern buyers are shunning the Aegean and Mediterranean resort in favour of Bursa property that has many similarities in culture. Prices here per square metre, are affordable and coupled with its year-round tourism industry, there is room for growth because Turkey plans to increase ski tourism in the country, of which Bursa is a major player thanks to Uludag mountain. The region also combines everything from city living to green spaces to coastal beach areas and is an all-rounder— About buying a property in Bursa.
Antalya: Otherwise, property in Antalya is another district to look at, if you want beachside locations. Many investors look to the already established Konyaalti beach area because of the ongoing investment in infrastructure. Other property hotspots include Alanya, Side, Kemer, the golfing capital of Belek, and Kalkan, that is renowned for luxury villas. About the Antalya area.
Please contact us if you want to know more about making an international property investment. Also, see our portfolio of listings on the real estate market. Each one includes everything to know, including location, price, and home features and how to arrange a viewing or receive additional information via email.
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