Buying Property Overseas: 6 Reasons to Invest in Turkey
Anyone thinking of buying property overseas has many factors to consider. After all, the prime aim of owning international real estate is to maximise your returns, and every country’s market differs drastically. So, trying to navigate the house buying process when you are not an expert takes skills and much research.
As a leading real estate agent, we can confidently put forward many reasons to invest in Turkish property whether you want a holiday home, resale apartment, beachfront mansion, buy to let income, or investment opportunities. It seems we are not the only one with our eyes on the country either.
For investors, Global Property Guide has given Istanbul four out of five stars. Good points for investors looking at the country overall were low costs in coastal areas, moderate to high yields, economic growth, and little to reasonable transaction costs.
At the same time, they also marked Athens in Greece and Madrid in Spain as “risky or possible poor returns.” Overall FDI increased by 14% last year to a staggering 13.2 billion as investors looked to capitalise on current market conditions. However, what other reasons make Turkey one of the best countries for overseas property purchases?
Buying Property Overseas: 6 Reasons to Invest in Turkey
1: Turkish Lira Value and House Prices
Since 2018, the Turkish lira has lost 40% of the value, causing prices to drop when compared to foreign currencies. In 2018, the country’s international house sales shot up by a staggering 78%, and the value-added exchange rate accounts for a large percentage.
Financial experts also predict this year will see those current exchange rates stay the same, so homebuyers looking for freehold property that are in it for the long haul have much potential to make money when the currency regains its footing. The affordability of owning an overseas home stretches to many more investors when they turn towards the Turkish market.
2: Citizenship by Investment
Many countries offer citizenship investment programs, and Turkey is no exception. The concept of buying a second home and receiving a passport in return is a strong lure for global investors and those wishing to live and work overseas. In 2018, Turkey dropped their citizenship investment level from 1 million USD to 250,000 USD, and the result was a flurry of interest from all around the globe.
The only requirement is that you must keep your real estate purchase for at least three years, so if you are a potential expat looking at a long-term love affair and have enough cash, this appealing option should be looked at.
3: Streamlined Property Buying Process
Before the turn of the century, finding out how to buy a house in Turkey was a nightmare process because of inconsistencies, loopholes in the law, and unnecessary military search clearance that made expats wait many months for their title deeds. In the years that followed, government officials realised its overseas market faced long term damage if they did not rectify this.
So, they got rid of bribe prone managers, kept low legal fees, made the military search quicker and easier to apply for, and set in place licenses and requirements for people to act as estate agents. While other countries still carry on the reputation of dodgy real estate markets, Turkey cleaned up its act to make it safer and more manageable for foreigners to buy.
4: Year-Round Destination for Foreigners
Turkey is already one of the top visited destinations in the world, having hosted over 40 million tourists in 2018. The main bulk of tourists come during the official tourism season from May to October when the beach resorts open.
However, they don’t plan on resting on their laurels because long-term projects aim to make it a year-round destination for leisure and tourism. Niches like skiing and medical tourism intend to fill in the gap outside of its official tourism season while destinations like Antalya have ideal weather to welcome beach tourists in March, instead of waiting until May.
Turkish Airlines, the country’s leading carrier, is also increasing international flights to top tourism hubs like Antalya. By 2023, Istanbul will also host the world’s biggest airport. The amount of foreign income flowing through its tourism industry ultimately has a knock-on effect for other sectors like international property sales, nightlife, and shopping.
5: Urban Planning and Infrastructure
Quality of life is a crucial factor for many societies and the last ten years have seen Turkey rise in urban planning and improved infrastructure. Millions have been spent on roads, cultural centres, parks, renovating old buildings and public spaces, while fast and frequent transport has revolutionised many towns and cities.
The market itself has also had an overhaul as new build properties replace the old, worn down homes of the last century. Whichever district you plan to buy property in, the local council presents a list of future topics, visions, and missions on their website, so you can see exactly what the future holds for each neighbourhood.
6: Low Cost of Household Bills and Maintenance
One strong lure to buy a home is low monthly costs for household bills and maintenance upkeep. Significant factors that draw in first-time buyers, especially when compared to their home country, are low council tax rates, no television fee, minimal costs for water, and excellent internet and telephone packages. Monthly payments for apartments on complexes with social communities are also low and managed under the apartment aidet law.
Starting Your Property Search
If you are interested in buying property overseas and want to look further at the Turkish real estate market, and how to perform due diligence, contact us by using the chat messaging feature at the bottom right-hand side of the screen.
If you have questions to ask, or want to arrange viewing times and appointments, call, email or drop into one of our regional offices listed here. Our portfolio of properties for sale in Turkey also speaks for itself, and you can find a new property within your budget. Each listing has a separate enquiry form so you can find out more on whether it is the perfect home for you and the region it is located in.