Is buying a property in Turkey a good investment?

Is buying a property in Turkey a good investment?
4 Good reasons to invest in a property in Turkey
Written on: 28 October 2018

The Guardian likened investors increased interest in buying property in Turkey this summer as a "gold rush" - and this rush is continuing. But, is buying a property in Turkey a good investment? Should you be trading in your dollars and pounds in return for an apartment in Istanbul or a luxury villa in Bodrum?

Weak Turkish lira fuels the Turkey property boom

In August 2017 the exchange rate was 4.5 Turkish Lira to the pound. In August this year, imposed American sanctions sent the lira plummeting from just over 6 to almost 9 to the pound at the height of the currency crisis. This meant property advertised in Turkish lira suddenly became extremely affordable for anyone wielding hard currency - and investors from around the world took note. Flights from the Middle East, Germany and the UK were fully booked in August, holidaymakers and property investors all keen to take advantage of the struggling lira and bag themselves a bargain. Official statistics from the Turkish Statistical Institute (TurkStat) showed a 129.6 percent increase year on year in Turkey property sales to foreigners during August 2018, stats were up again by 151.1 percent in September - a notable increase. The majority of sales were to those from the Middle East who opted to purchase investment apartments in Istanbul, although there were also many Europeans, Arabs and Russians that bought lifestyle apartments and villas in Antalya, Izmir, Fethiye and Bodrum. Even now, as the lira has recovered in part (now trading around 7.2 to the pound), the rate still leaves a property for sale in Turkey, and life in the country, extremely affordable for foreigners. The lure of great Turkish property deals and a cheap, sun-drenched lifestyle is hard to resist for many - all ensuring the continuation of what people are now referring to as the "2018 Turkey property boom".

4 Good reasons to invest in a property in Turkey

New Turkish property for citizenship law

In a bid to boost foreign investment and help bring the lira back in check, a US $250,000 investment in Turkish property for three years can now secure Turkish citizenship. Previously only those having spent US $1 million were entitled to apply, now the sum, cut by three-quarters, is a manageable amount. Officials expect this move to double property sales in Turkey and draw money into the country that would otherwise have been invested elsewhere. The scheme is working. Sales of Turkish property to foreigners is well on the rise and Turkish real estate agents are receiving many more enquiries and enjoying more sales as a result.

Buying a Turkish property is a simple procedure

Turkey has made many amendments to purchase laws and legislation over recent years to help lure in investors. It is now quicker and easier than ever before to purchase a property in Turkey. Changes to the military clearance procedure mean that in many cases apartments and villas in Turkey can be bought in just 24 hours, VAT discounts are also helping boost purchases. To settle buyer confidence, the property industry has also become strictly regulated, Turkish estate agents now need to be fully registered to limit cowboys and overnight set-ups.

Strong rental demands

Rental demand in Istanbul and along the coast is booming. The exchange rate has fuelled the highly profitable short-term tourist market and housing shortages in the cities make for a constant long-term requirement. Although strict rental procedures came into play that initially put some investors off purchasing buy to lets, every city and town now has management companies that take the hassle out of new rules and make sure properties are occupied and legalities met. The potential profits have lured investors in and many are now enjoying the benefits of extremely healthy returns.

Affordable living

Life in Turkey is easy for foreigners. The weak lira means daily living costs are a fraction of that in the UK and much of Europe. Utilities, groceries, eating out and getting about is all remarkably cheap. This has led to expat communities springing up in most popular areas, foreigners now choosing Turkey over the likes of costly Spain and Portugal. Affordability mixed with glorious weather, breathtaking scenery and a healthy dose of Turkish hospitality ensures lifestyle investors are onto a winning combination. In Turkey, not only is property affordable, but pay checks and pensions stretch further. Why invest in Turkey? Because it makes sense.

To know more about Turkish property investment or to view our current portfolio of city and coastal properties, please see Turkey Homes.   

Leave a reply:

Other posts

Bosphorus Mansions: Turkey’s Luxury Villas for the Super Rich

The Bosphorus mansions are Turkey’s crème de la crème of real estate. Also, called yali houses, these luxury villas in Istanbul are worth more than the average person will earn in six lifetimes.

Four of Istanbul’s Tallest Buildings That Dominate the Skyline

City skylines tell a lot about people who inhabit it, and Istanbul’s tallest buildings are no exception. Standing out among minarets of mosques, bridges, and iconic landmarks, they stand for a generation who strives to break records.

Global Interest in Turkish TV Series Proves Fruitful for Turkey

While international fairs and mainstream advertising methods like newspaper and internet ads can be credited, Turkish TV series step up to the podium as the king of influencing people to sit up and take notice.

Is buying a property in Turkey a good investment?

Is buying a property in Turkey a good investment? Should you be trading in your dollars and pounds in return for an apartment in Istanbul or a luxury villa in Bodrum?

How to sell your property in Turkey

Selling your Turkish property doesn't need to be a daunting prospect, if you present it well, employ a good agent, price it competitively and market it to the right people, you should see results.

Download our Turkey Homes app now

Available Free on App Store and Google Play



mobile screen mobile screen
mobile screen