If you do things right and deal with a competent real estate business that understands what they're doing, buying property in Turkey is quite safe and uncomplicated.
Because of its great liquidity, investing in Turkish real estate is favorable. Apartments in residential complexes that offer a variety of amenities and are located in locations with excellent infrastructure are in high demand throughout the year. They're also good for resale.
Purchasing real estate in Turkey is a wise long-term investment. Regardless of the global COVID-19 epidemic, the sector presents exceptional potential, especially for international companies.
Since January 2017, you can buy your ticket for Turkish citizenship.
Buying a property in Istanbul is a great investment because the city's rates are quite affordable, especially for international purchasers. The majority of homes in Istanbul have a one-year rental potential, resulting in a significant return on investment in the form of rental revenue.
Under the correct circumstances, it is possible to get a Turkish mortgage as a foreigner.
Turkey is one of Europe’s fastest-rising real estate markets. It is strategically located at the crossroads of Europe, the Middle East, and Central Asia and offers significant potential for real estate developers and investors, thanks to its massive construction sector and expanding commercial and industrial production. Therefore, if you want to get a guaranteed high return on your real estate investment, Turkey is an ideal choice. Turkey is considered a fruitful field for real estate investment as the real estate values in Turkey climb by an average of 18 percent every year. Moreover, in the very near future, urban regeneration and megaprojects will be at the top of the agenda in Turkey, notably in Istanbul. Marmaray, the Yavuz Sultan Selim Bridge, the Eurasia Tunnel, and Istanbul Airport are only a few of the city's projects.
Foreigners would invest in Turkey's real estate market since the country has demonstrated its economic strength and successes in a variety of industries and sectors, particularly the real estate market, which has become one of the country's primary foundations. This is attributable to a combination of factors, the most important of which is the wide range of options available in the Turkish real estate market, which caters to all interests and demographics.
The Turkish government recognizes the importance of assisting the real estate investment sector, as well as attracting foreigners and their vast capital and encouraging them to invest. And that actually urged the Turkish government to develop new decisions and legislation encouraging real estate investment in Turkey, such as tax cuts and the possibility of obtaining Turkish citizenship by purchasing a property.
Turkey is a growing economy, and all evidences indicate that this will not change. The IMF recently updated Turkey's predicted growth statistics from 2.9 percent to 3.2 percent, which is much higher than European growth rates. This expansion appears to be accelerating in the coming years, thanks to large infrastructure initiatives, among other things. Like for example the new Istanbul airport, which is the largest in Europe and one of the largest in the world. With a combined capacity of more than 200 million passengers, Istanbul will be firmly established as one of the world's main aviation hubs.
In general, Turkey's economic performance has been spectacular since the early 2000s, resulting in increased employment and incomes and elevating the country to upper-middle-income status. GDP, the country's main indicator, increased from 231 billion dollars to 820 billion dollars during this time. Between 2002 and 2015, the country's GDP increased by 5.1 percent on an annualized basis. During this time, Turkey rapidly urbanized, maintained strong macroeconomic and fiscal policy frameworks, opened to foreign trade and finance, aligned many laws and regulations with European Union (EU) standards, and greatly expanded access to public services.
Because of its strategic location between Asia and Europe, Turkey has long played an important role as a natural connection between the two continents. Because of its geographical location, Turkey has adopted a variety of business connections that connect the East and the West. So, Turkey now has a strategic location that enables it to reach about 1.5 billion people in Asia, Europe, and Africa, as well as being the most reliable and experienced transit route.
The institutional profit tax on foreign investors has been cut in order to attract them to invest in Turkey. However, in Turkey, there are several types of property taxes. The purchase tax, which is approximately 4% of the purchase price, Usually, half is paid by the buyer, with the remaining 2% paid by the seller. Commercial premises are also subject to an 18% VAT tax. Despite, residential properties are subject to a reduced VAT tax, which can vary from 1% to 18% but is often on the minimal end of that range. Foreign investors can avoid paying VAT if they satisfy certain requirements, such as pledging not to sell the property for at least a year. Buyers must also pay annual real estate taxes.
Many governments have difficulties detecting foreign investments, but Turkey, a member of the Organization for Economic Cooperation and Development (OECD), began eliminating such hurdles for international investors in 1997. Today, a company is founded every six days in Turkey, and the government treats all investors equally, promoting a competitive environment. According to the Ministry of Economy, Turkey has roughly 37.000 enterprises with foreign funding. To address intractable challenges that foreign enterprises experience, Turkey also provides the option of appealing to international courts and tribunals, which has strengthened Turkey's appeal to foreign investors.
One of the primary motivations for foreign investors to invest anywhere is to offer the required infrastructure for investment and lowering transportation costs. When it comes to fundamental infrastructure, such as transportation, communications, electricity, and technical infrastructure, Turkey has witnessed rapid growth, making it a magnet for international investment. Three seas were briefed in Turkey, which gave it access to extremely inexpensive ocean transit as well as a train network connecting them to Central and Eastern Europe.
When it comes to investing in a location that necessitates the presence of qualified youth and competent labor, Turkey's young population dwarfs that of European countries. Turkey is Europe's most populated country, with more than half a billion people, which implies that any investor who establishes an enterprise in Turkey would not face labor shortages.
According to the Turkish Statistical Institute, Turkey has 29 million young people, mainly trained and certified professionals, where around 600,000 young people and 700,000 graduates from secondary schools, institutes, and vocational institutions graduate each year from roughly 200 universities. Those who are qualified for employment, fostering a competitive climate that encourages workers to be creative and perfect their craft.
Offering the requisite requirements for investment and lowering logistics costs are two of the most crucial motives for foreign investors to invest anywhere. Turkey has undergone a growth in basic infrastructure, such as transportation, communications, power, and technological infrastructure, making it a magnet for international investors.
Because of its low labor costs, Turkey is a manufacturing hotspot. According to a recent survey, emerging industrial regions in Turkey are becoming more appealing owing to lower costs, although the country is still one of the top ten manufacturing powerhouses. Cushman & Wakefield, an American commercial real estate services firm, rated Turkey 10th out of 42 countries in its Manufacturing Risk Index 2018, considering the desirability in terms of production firms' views. Turkey was also listed behind China, Lithuania, Malaysia, Taiwan, Canada, the United States, Hungary, the Czech Republic, and Slovakia, where Cushman & Wakefield stated that Turkey's greatest competitive edge at the moment is its cheaper prices. Despite salary rises in Central Europe, labor expenses in the region remain among the lowest in Europe. Lithuania, Poland, the Czech Republic, and Turkey have the lowest labor expenses.
Real estate investing is a great choice for many people. And for sure investing in Turkish real estate is still one of the safest and most trustworthy investments you can make with a guaranteed high return. In Turkey, the average profit from real estate investment is 5.5 percent.
Turkey's high rate of inflation has had a major impact on the country's property sector. In regards to the Turkish real estate market, researchers estimate that prices for new homes will gradually rise in the year 2022, rising by 20% during the first half of the year and maybe approaching 50% due to the heavy sales last year. With 1,500,316 houses sold in 2021, Turkey has established a new record for housing sales. As can be seen, property sales increased by 11.2 percent over the previous year. As a result, interest rates at banks fell, attracting a significant number of customers, many of whom were of diverse nationalities.
The median age of the Turkish population is around 30 years old. Therefore, there is plenty of need for individuals looking to rent or purchase. We have to also keep in mind that tourism in Turkey is still so strong, so buying a property to use as a short-term rental may be quite rewarding.
The Turkish government is ardently encouraging foreigners to invest in Turkey through its citizenship by investment program. When Turkey first launched its Turkish citizenship by investment program, investors had to buy a property worth at least 1 $ million US dollars. The requirement soon decreased to a much more acceptable number 250,000 $ US dollars. Turkey's citizenship program has grown in popularity after the minimum value of investment was reduced. So, it becomes now competitive with other citizenship and Golden Visa schemes in the area such as those in Portugal and Malta. Through this program the government allows foreigners to apply for Turkish citizenship by purchasing a property in Turkey, or multiple properties in different governates or cities, for a total value of 250,000.00 $ US dollars or the equivalent at the time, depending on the exchange rate of the currency.
EU-Turkey trade relations are based on an Association Agreement from 1963 and a Customs Union Agreement that entered into force on December 31, 1995. The union's goal is to expand commercial activity and offers. Between the members of this union, there are 20 free trade agreements. Through the signing of new agreements, these commercial links are growing every day.
Turkey's tourism rates have suffered in the past due to a range of unpredictable circumstances, but with blue coastlines, beautiful mountainous scenery, and a rich heritage, the number of tourists to Turkey is on the increase yet again. Famous tourist destinations such as Istanbul, Antalya, and Bodrum, as well as the Aegean and Mediterranean Seas, benefit the most from tourism's constant expansion. So, the need for short-term rentals and vacation homes is always increasing, and as a result placing increasing pressure on prices. Despite the fact that real estate prices in Turkey have seen many ups and downs, purchasing property in a popular tourist destination might provide you with a consistent rental income, particularly during peak season, with holiday homes.
According to Turkish Statistical Institute data, from 2002 to the present, the internet penetration rate has climbed from 100,000 to 33 million, the number of smartphone users has grown from 23 million to 70 million, and the number of borrowers has gone from 16 million to 58 million. Furthermore, the number of smartphone users has risen from 33 million to 131 million. As seen by the increase in international tourists from 13 million to 40 million each year, Turkey has a significant domestic market.
Since there is a perception that demand in Turkey remains steady, several banks are giving tax breaks to those who buy with a mortgage in an attempt to raise interest in the Turkish real estate market.
Turkey is a significant participant in the energy transmission between Asia and Europe. It contributes significantly to the transfer of energy from east to west as well as financial transactions from west to east. On the other hand, 70 percent of the world's power sources are scattered throughout Turkey and adjacent countries, making it an important center for energy transfer to Europe, which is among the world's most powerful energy consumption stations.
For many individuals, location is a critical consideration when purchasing real estate. Time is also an important consideration when making an investment since it might have an impact on the investment's long-term profit. Because you may be asked to pay a down payment ranging from 3% to 20%, the optimal time is when you are financially secure. You'll also be responsible for closing charges, which range from 2% to 5% of the property's purchase price. Aside from these costs, there will be mortgage payments, property taxes, upkeep, utilities, and so forth. Financial stability is required to fulfill these costs and avoid debt.
Therefore, to reduce risks and increase returns on investment, you should conduct research before buying a property. First and foremost, you should conduct a real estate market study in the area where you intend to invest. It's also important to compare communities with criteria like rental revenue, listing price, and cash return. Population growth, economic growth, crime rate, local news, and facilities are all important elements to examine throughout the neighborhood study.
Second, after determining a location and identifying listed or off-market properties, you will do a rental property study. Finally, a house inspection is required to discover flaws in the property. And don’t forget, before you invest, double-check that it is the proper time of year. Winter, for example, is the greatest time to buy real estate since there are fewer buyers on the market, causing prices to fall. And since there will be no demand, the real estate agent will pay more attention to you. Spring is the second-best season to invest in because property values have increased. Always do your analysis before purchasing a property, and after you've discovered the one that's appropriate for you, don't wait for winter or a realtor's market to make the purchase.
Foreigners are interested in buying properties in Turkey to use them as vacation resorts, rent them out for an annual second income, or to gain Turkish citizenship. As a result of its continued prosperity, Turkey has transformed into a brilliant flame, attracting visitors and investors alike. However, there are many cities in Turkey that provide numerous advantages for real estate investment.
The name of Istanbul may come to mind when you hear the word Turkey. Istanbul is the country's largest city. Furthermore, Istanbul serves as the business centre for Turkey's most popular tourist destination. Istanbul is so well-connected that it is only a 4-hour flight away from more than 55 countries across the world. Istanbul is rapidly approaching the top five worldwide cities. The country's 2023 economic program included all of the primary appealing alternatives that would quickly make Istanbul the most desired city.
If you want to buy a vacation property, Antalya is the perfect place to do it. It boasts low property costs and is a popular tourist destination for holidays. Russians, Britons, and Germans are all interested in investing in Antalya real estate.
Bursa is the most popular city among Middle Eastern shoppers. The city boasts several attractions, including exquisite Ottoman structures, hot spas, verdant parks, gardens, historical monuments, mountains, and skiing. Property in Bursa remains affordable all year, but with the new Osman Gazi bridge reducing travel time to Istanbul to one hour, it is increasingly probable that prices will rise.
Bodrum, Turkey's most attractive coastal destination, draws visitors from all over the world with its unique and old ruins, castles, beaches, and resorts. Bodrum's low-rise, white-painted homes give it a classic atmosphere. The disadvantage of investing in Bodrum is that its property costs are higher than those in Fethiye, yet cheap housing alternatives are available.
Fethiye is another place that will provide you with value for your money. With breathtaking scenery and little settlements like Üzümlü, it is the ideal alternative for mountain and beach lovers. You can immerse yourself in the traditional Turkish way of life while also taking in the beauty of the bays and beaches. Fethiye, too, is a popular destination for expats.
Finally, Kusadasi is well-known for its tourist attractions. Kusadasi is a must-see on any trip to Turkey. The Izmir airport connects Kusadasi to Istanbul in 55 minutes. This Turkish city on the Aegean coast has piqued the interest of international investors for a variety of reasons. In comparison to other regions, Kusadasi has reduced real estate prices. The area has a wide range of properties for sale in Turkey, from modest flats to luxury condominiums.
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