Why Invest in Turkish Property
It is normal for foreign investors to ask for reasons to invest in Turkish property. For foreigners, buying a home in Turkey has been popular for decades. Still, in recent years, even more nationalities have flocked to take advantage of affordable prices and, in some cases, the Turkish citizenship incentive. Foreign buyers flock for various reasons. Perhaps the most popular is the holiday homeowner, who has purchased more holidays, without accommodation costs. They created for themselves a perfect home from home. They stay away from Turkish cities and head to the coastal resorts.
The second is retirees who want to live cost-effectively in a country providing warm weather and good health care. Finally, investment buyers, business owners, and developers who purchase land or properties to renovate, rent out or provide as holiday accommodation often dip into the real estate market. Most avoid commercial properties since this creates a different ballgame, rules, and regulations. Buying property in this geographical location is a winning situation for every type of real estate investor. This article looks at the reasons why, the benefits, tips for buying, and the lingo you need to know.
9 Reasons to Invest in Turkish Property
Anyone thinking of buying property overseas has several 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, navigating the house buying process as an amateur takes skills and research. As a leading real estate agent, we confidently put forward various reasons to buy a holiday home, a resale apartment, a beachfront mansion, buy-to-let income, or just for investment opportunities.
1: Citizenship by Investment Program
Several countries offer real estate investment programs, and Turkey is no exception. 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. The minimum investment amount for Turkey's citizenship program is $400,000, a reasonable price compared to other countries. The only requirement is to keep your real estate purchase for at least three years. (More information here.)
2: Streamlined Property Buying Process
Before the turn of the century, finding out how to buy residential properties in this prime location was a nightmare because of inconsistencies, invalid documents, loopholes in the law, and unnecessary military search clearance that made expats wait months for their title deed transfer. In the following years, government officials realised that their overseas market faced long-term damage if they did not rectify this.
So, they got rid of bribe-prone managers, kept low legal fees, eliminated the military search and set licenses and requirements for people to act as estate agents in place. While other countries still carry on the reputation of dodgy real estate markets, Turkey cleaned up its act to make it safer and manageable for foreigners to buy and make good returns on investment. These days, buyers can receive their deeds in as little as a week.
3: Year-Round Destination for Foreigners
The strategic location is already a top-visited destination in the world. Most tourists come during the official holiday season from May to October, when the beach resorts open. They enjoy the beaches, cultural heritage, and natural beauty. Niches like skiing and medical tourism fill the gap outside tourist seasons. At the same time, destinations like Antalya have ideal weather to welcome beach tourists in March, instead of waiting until May.
Turkish Airlines, the country’s leading carrier, operates worldwide, and in Istanbul, a state-of-the-art airport has revolutionised the aviation industry. 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. Indeed, Turkey easily ranks alongside European countries in the tourism sector.
4: Urban Planning and Infrastructure
Quality of life is a crucial factor, and over the last 20 years, Turkey invested billions into urban planning and improved infrastructure. This includes roads, cultural centres, parks, and the renovation of old buildings and public spaces, while fast and frequent transport has revolutionised towns and cities. New build properties replaced old, worn-down homes of the last century. Think modern apartments and large villas. Local councils also list future topics, visions, and missions for all regions on their website, so residents know precisely what the future holds for each neighbourhood.
5: Low Cost of Household Bills and Maintenance
Despite the economy taking a dip, like other countries worldwide, one strong lure is low monthly costs for household bills, taxes, and maintenance upkeep. Significant factors that draw in first-time buyers, especially compared to their home country, are low council tax rates, no television fee, minimal costs for water, and excellent internet and telephone packages. The apartment aidat law also covers monthly payments for apartments in complexes with social communities.
6: The Turkish Economy and Growth Potential
Turkey’s economy continues to demonstrate resilience and dynamic growth potential, making it an increasingly attractive country for investment. Reforms are restoring investor confidence, and the country’s large, youthful population ensures steady demand for housing, commercial space, and infrastructure development. Strategically positioned between Europe, Asia, and the Middle East, Turkey is a vital hub for trade and investment.
Its business environment—tourism, manufacturing, agriculture, and services- offers strong foundations for investment strategies and economic growth. The housing sector shows consistent growth, driven by urban renewal projects, increased foreign interest, and government incentives such as citizenship through property investment. With modern infrastructure, a pro-investment legal framework, industrial sectors, and ongoing mega projects like the Istanbul Canal and new transport hubs, Turkey presents a compelling opportunity for real estate investors looking for long-term value in a dynamic market.
7: The Banking Sector
Turkey's banking sector offers a stable and efficient platform for both domestic and international investors. It consists of a mix of strong public and private banks and several international institutions operating locally. Turkish banks are known for their advanced digital banking services, quick loan processing, and solid regulatory oversight by the Banking Regulation and Supervision Agency (BDDK). Foreign buyers can easily open a Turkish bank account with a passport, tax number, and proof of address, enabling them to transfer funds, pay property taxes, and manage rental income seamlessly.
8: Range of Property Options in Real Estate Landscapes
There is a vast choice of immovable property, from coastal retreats to city centre skyscraper living, apartments, and luxury villas. Some properties sell at average prices, while others cost six figures and are part of the global luxury market. Foreign nationals will find attractive propositions if they want a basic studio apartment of 50 square meters or a spacious villa with a private garden and swimming pool.
Affordable apartments rule the market in places like Altinkum and Alanya, while beachfront villas are the norm in places like Bodrum. Some areas, like the Bosphorus, offer only exclusive listings, while there is investment potential in current off-plan projects by real estate developers in Antalya and Fethiye. This beautiful country has several choices of property types and central locations, and the only thing real estate buyers must do is choose the right one.
9: Property Ownership, Residency and Citizenship
People don’t have to buy a home to get residency, but most homeowners do so that they can spend extended periods in Turkey. Additionally, some home buyers apply for citizenship, which has different criteria to fulfil. Alternatively, invest in a modest studio apartment for sale in Istanbul, for example, and still apply for a residency in Turkey, which is renewable yearly. Turkey's housing market operates on the 'freehold ownership deed' of properties. Whether it is a small apartment unit or a detached home, you are the sole property owner. This gives much freedom when renovating or selling.
Our Tips for Clever Investing
Congratulations if you have decided to enter the real estate sector, because the country offers good financial investments. Low prices reflect its late entry onto the international property scene, and a massive building spree across the country ensures all potential buyers have an extensive portfolio at hand.
Putting the benefits aside, we understand that first-time property buyers in Turkey will be nervous. Navigating housing markets in a country other than your own is a whole new life lesson. With that in mind, we put together some helpful tips to get you started.
1: Know Your Investment Goals
Be certain of your personal goals for buying property. Off-plan property presents an attractive return for long-term financial investments. There are exceptionally well-priced resale properties. Expats looking to relocate to the country for permanent living prefer spacious properties in a town that is active all year round, not just during the tourism season. Knowing your reason for making a foreign investment makes browsing through the thousands of properties for sale easier.
2: Know the Price Brackets and Location
Like other countries, each location has property price brackets. Altinkum resort on the Aegean coast has attracted English expats as one of the cheapest places. Meanwhile, luxury Kalkan specialises in state-of-the-art, modern villas on the Mediterranean coast. A lack of available land surrounding the resort has boosted home values, and there is a unique upscale ambience and vibes. Hence, Kalkan attracts business professionals. Istanbul, the largest city, is the most expensive place because the city is a hub for business, finance, and tourism. This city receives attention from real estate and construction companies because the market is concentrating on modern properties designed for working professionals.
3: How Much Can You Afford to Invest?
Some people fall in love with a particular house and try to fund it, but we firmly believe that direct investments should never stretch you to your limits. Be realistic, and you won’t have to sell quickly at knock-down prices in the future. Know your financial situation, decide on your budget first, and then look at portfolios that fit into this range.
4: Always Ask Questions
We try to provide potential customers with all relevant information. This includes details, a list of needed documents, and extensive facts about the buying process. However, we realise this is information overload for some people and urge savvy investors to ask questions, so you go into your property purchase with full confidence and knowledge.
Turkish Lingo to Know About
Entering the property market is an exciting endeavour for prospective buyers. The dream of owning a home in the sun becomes realistic because of low, affordable prices and a varied portfolio. From the major cities to affordable property prices, here is some lingo.
A: APARTMAN is an entire building comprising separate 1-, 2-, 3- or 4-bedroom apartments. A single apartment on its own is a dairesi. Apartment living is popular in Turkey, so potential buyers have much to choose from.
B: When moving to Turkey, some expats look for villas with a garden called BAHÇE. They are solely responsible for it. If people buy an apartment instead, they may have access to communal landscaped gardens, which all apartment owners look after.
C: Any building with more than six apartments must adhere to Turkey's CONDOMINIUM laws. These cover the upkeep of communal areas such as electricity in hallways, swimming pools, onsite security, gardens, and facilities. Apartment owners appoint a committee and a manager (Yonetici) to handle the finances, work, and details.
D: Homeowners must buy yearly DEPREM Sigorta, which is earthquake insurance. The price depends on the square meterage of the apartment or villa, and homeowners can increase coverage to include fire, damage, and theft.
F: FIYAT means price, and it is shown on title deeds as Turkish lira. The amount listed depends on the region’s official pricing brackets.
H: The word HARITA means maps. We use them to show our customers how far a home is from shops, beaches, and bus routes. Title deeds offices use them according to a system of blocks and parcel numbers to show ownership.
I: In Turkey, properties must have a habitation certificate called an ISKAN. The certification proves the home is suitable for human habitation. Do not buy a home without one.
M: MANZARA means view, or in the case of sea views, DENIZ MANZARASI. Properties with this feature often fetch a higher price.
O: ODA is a simple word to remember and means room. A bedroom is called a yatak odasi, a dining room is yemek odasi, a child’s bedroom is a cocuk odasi, and a living room is an oturma odasi, although the word salon is often used instead.
P: PENTHOUSE apartments are popular in the business districts of Istanbul and coastal resorts. Often covering two floors, they have fantastic land and sea views and include large terraces for summer living. See our portfolio of penthouse apartments here.
R: The housing market includes RESALE apartments and villas, new builds, and off-plan homes. Sometimes, the owner is looking for a quick sale and advertising at a low price. Most sell fully furnished to move in straight away.
S: SATILIK, translated into Turkish, means for sale; the word for owner is SAHIP. So, if a house advertises as Sahibinden satılık, it means for sale by the owner.
T: The title deeds are called a TAPU. Buyers can receive the deeds in the same week. When a house is bought/sold, a title deeds tax of 4.4% needs to be paid.
V: The word “villa” is precisely the same in Turkey. This type of house is especially popular in the Aegean and Mediterranean regions. Most have private swimming pools and gardens, and prices start from roughly USD 250,000.
To learn more about the reasons for investing in Turkish Property and how to perform due diligence, contact us by using the chat messaging feature at the bottom right-hand side of the screen. We are Turkey Homes, a property investment real estate agent. Also, get in touch to learn about the buying process, ideal places and of course, to find your dream home. Alternatively, see our portfolio of apartments and villas for sale in areas like Bodrum, Antalya, Bursa, Istanbul, and Fethiye.
Fethiye
