Do Not Invest in Turkey Without Reading This

Ah, foreign buyers love Turkish properties. An average of 50,000 people invest in real estate each year and they are driving a real estate market that has changed over the past 20 years, but there is still plenty to choose from. Reasons for buyers to invest in real estate vary from rental income to desirable price, capital appreciation, Turkish citizenship or simply owning a home in a luxurious second lifestyle complex.

Whatever your reasons, the market still requires careful navigation to secure a great investment. While many buyers purchase property based on their dream of living abroad, we always say invest wisely to maximize your returns. With that in mind, here are the pros and cons, frequently asked questions, and buying tips.

1: PRO: Geography and Tourism

For centuries, Turkey's position sandwiched between Europe and the Middle East has cemented its position as a major real estate market. The economic success of Turkey's largest city, Istanbul, a center for business and real estate development, has shown no signs of slowing down due to its unique location in recent years.
Additionally, Turkey's incredible Aegean and Mediterranean coasts attract tourists from all over the world, making Turkey the third most popular tourist destination. Furthermore, Turkey's unique coastal geography is gaining popularity as sailors seek to explore the country's 8,000 kilometers of coastline. Owning a property in Turkey opens up a wealth of places to explore and a healthy tourism market, from Istanbul to the Aegean and Mediterranean Seas.

2: PRO: Reasonable price

Unlike the rest of the Mediterranean, it is still possible to buy large family homes by the sea at low prices. It's a far cry from comparable regions in France or Spain, where property costs double or even triple that. Real estate prices have been rising steadily over the past decade, paving the way for a healthy resale industry, not to mention some very healthy capital gains from buyers past and present who recognize the value of the investment at an early stage, especially in some parts of Istanbul.

3: PRO:Healthy rental market

Many homebuyers supplement their investment by renting out a vacation home at a reasonable net price. Summers in Turkey are long, well marketed and average holiday homes are in high demand. The "home away from home" phenomenon has swept Turkey, with holidaymakers shunning hotels in favor of more comfortable self-catering accommodation. Therefore, high quality and unique characteristics are especially required. Rents in Antalya city and Istanbul are slightly different. Investors often buy apartments and rent them out to the many young professionals who move each year to affluent cities for work. As a result, these investors receive a steady, reliable income regardless of the season and price.

4: Disadvantage: flight time

Investing in real estate and traveling to Turkey requires a special commitment. Foreigners can fly from London to Nice or Malaga in about three hours, while flights to Antalya, Bodrum or Fethiye take about five hours. A bit far for some. For others, this is not a problem. However, key management is essential for foreign real estate investors who are not regularly in Turkey. On a positive note, there are now more flights to Turkey than ever before, even in the low seasons of December and January.

5: Disadvantage: language barrier

English speakers are notoriously bad at picking up the jargon of the countries we visited, and Turkish isn't the easiest to understand. In the main centres, most people you deal with - bankers, stall owners, hoteliers, waiters - speak good English. But once you venture into more remote villages and away from the coast, you'll have a hard time making yourself understood unless you know a few words of Turkish - or are particularly good at using gestures. However, if you are buying property, Turkish law requires you to have an interpreter. Many foreigners buy property in places where foreign languages ​​such as English are widely spoken. There are ways to avoid this disadvantage of owning a second home in Turkey.

6: Tips for good investing

Location Research: In order to maximize your cash flow when looking for sales, local and national research is essential. Check out the local amenities and amenities surrounding each apartment or villa you're considering buying. Remember, luxury real estate is worthless if the surrounding areas are also not luxurious. Find out if there are any future construction plans in the area. Some, like schools and shopping centers, can increase the value of a property. Others, like nightclubs and bars, don't. Some may also block ocean views, for which homebuyers pay extra.

Condominium complex: If you plan to purchase an apartment in a complex or villas in a condominium complex of eight or more, you must have a management plan to pay for all community amenities such as swimming pools and hallway power. The management board must also keep official accounts of its expenses throughout the year, as each apartment owner must pay a monthly fee. This is the national condominium law for real estate in Turkey.

Mortgage Rates in Turkey: Sometimes buyers want a mortgage in Turkey to buy real estate. This is an option, but check current and future rates. They can be very violent at times. Many homebuyers in the country tend to opt for long-term payment plans in Istanbul developments.

7: Turkish Citizenship by Investment Program

The Turkish government has a program where investors buy property for $400,000, commit to holding it for three years and apply for Turkish citizenship. Note that buying real estate is separate from the naturalization process. Additionally, real estate citizenship and free passports are only available on state-approved properties, most of which are located in Istanbul. More information on obtaining Turkish citizenship by real estate investment.

8: Where to invest in real estate in Turkey?

Istanbul City: Ah, Istanbul on both sides of Europe and Asia, the center of the Turkish real estate market. Most homebuyers look at financial gain and purchase real estate here. The main reason is the construction of large living complexes with on-site facilities in the European suburbs of Istanbul. They offer the best real estate deals with 0% interest, off-the-plan properties at sale prices, and long-term payment plans. Also, many citizenship-approved properties are located in Istanbul.

Antalya Region: In terms of investment, Antalya ranks second. Located on Turkey's Mediterranean coast, the region is divided into smaller resorts, including the city center which is an investment hotspot. The area offers different selling prices for budgets, with places such as Belek boasting themed properties such as golf. Today the Altinbas area is the preferred destination for apartments for sale due to limited supply in Lara Beach and Konyaalti areas. Apartments for sale in Antalya close to the beach are ideal holiday homes in Turkey and always offer good capital growth.

Fethiye: Investing in this part of Turkey remains popular due to its affordable prices. Whether you are looking for a Calis beachfront home or a city center apartment, the area is ideal for medium to long term investment. Property in this part of Turkey is mainly sold to expats and people who want a holiday home. Still, with careful navigation, you can get a good home for your real estate profile.

More information on investment properties in Turkey

Properties for Sale: To learn more about investment properties in Turkey, view our portfolio of apartments and houses for sale. Each listing features new developments, turnkey properties and homes for sale in many regions of Turkey and includes everything you need to know, including contact details to find out more by phone or email or to arrange a viewing in Turkey room tour.

Investing in real estate is always associated with specific risks globally and should be assessed on a case-by-case basis. Real estate in Turkey is no exception. If you want to know more about investing in Turkey, such as Istanbul or Turkish citizenship programs, please contact us. Alternatively, you can drop by one of our offices in Istanbul, Bodrum, Fethiye or Antalya and discuss with a local agent how to make a smart investment in Turkey.