When considering real estate investment markets throughout the world, buying property in Turkey is a choice many nationalities are making. Foreign house sales are at an all-time high in prominent areas like Istanbul and Antalya.
This isn’t just marketing hype because we see the proof in the country’s official statistics. While domestic sales slowed down because of high-interest rates, sales to foreigners in the first half of 2019 jumped by a staggering 68% year-on-year.
From January to June, foreigners purchased 19,952 apartments and villas across Turkey. Nationalities choosing to join the Turkish housing market included Iraqis, Iranians, Russians, Germans, and Brits.
But why is the world looking towards the Turkish real estate market and when investing what do you need to know?
1 - Lucrative Exchange Rate: With a current exchange rate of over 5 USD to the lira, buyers are getting far more for their cash than 3 years ago. With financial expectations that the lira will rebound, this presents good opportunities for budget buyers to get their foot on their Turkish housing ladder.
2 - Citizenship by Investment: A big boost to the property market came when the Turkish government dropped the minimum entry-level of their citizenship by investment program from 1 million USD to 250,000 USD. This makes it one of the cheapest golden passport schemes in the world and alongside a simplified application process, also the easiest.
3 - Long Term Capital Appreciation: Anyone looking at flipping houses for a quick profit would not fare well in this current market, however a long-term investment of ten years or more presents ideal appreciation since Turkey’s modernised housing market is still in its infancy.
4 - Low Purchasing Costs: While the property buying process in other countries involves hefty purchase costs and taxes, Turkey offers the opposite. Combine this with an easy process that takes 2 to 3 weeks to complete, and you have a stress-free entrance into the market.
5 - Attractive Portfolio: The stark difference from Turkey’s real estate market 20 years ago to present-day is clear in the vast abundance of modern apartments, villas, and commercial buildings for sale.
To boost the market, the government also invested billions in upgrading infrastructure and roads, so together it is a buyer’s market where you can find what you are looking for within your budget.
6 – Ideal Lifestyle: Without a doubt, house buyers looking for another country to retire in choose Turkey for the lifestyle. The gorgeous weather, healthy living attitude, strong community vibes and its seaside location prove too much of a lure. This also appeals to buy-to-let investors who want to tap into one of the world’s fastest growing tourism markets.
The residency program and the real estate market are two separate areas and buying property does not entitle you to residency. Instead, complete a separate application process including health and financial checks. The exception is if you purchase property in Turkey worth $250,000 or more, in which case you can apply for Turkey’s citizenship investment scheme which grants you full working and living rights.
Yes, Turkey has seen the damage that previous haphazard processes caused and have tightened up the market to safeguard investors money. The government abolished lengthy military checks and estate agents need licenses to operate and follow market protocols.
You still need to do your own due diligence to ensure a safe investment. Always use an independent solicitor, and document all financial transactions via the bank for proof of purchase.
In 2013, Turkey’s housing market received an additional boost when they dropped the reciprocal cause, and this opened the market to the entire world. Citizens from Syria, Armenian, Nigeria, Cuba and North Korea can not buy but every other nationality can.
As the 37th largest country in the world, Turkey’s vast landscapes present a variety of destinations all in different stages of development and housing price indexes.
For example, in luxury Kalkan, it is rare to find a property for under £100,000, yet head across to Aegean Altinkum, and prices of one-bedroom apartments start from £40,000. Read more about property prices in Turkey.
This depends on your budget and reasons for buying. Every area offers something unique, but some are more suited for example, luxury homes, or commercial business premises.
Certain districts are leading the way in the housing market and selling more properties to foreigners than others. Let’s look at where they are.
Istanbul: Since Istanbul leads the way in everything including tourism education, business, and finance, it is no surprise that the housing market is also number one in Turkey.
Yali mansions sitting on the Bosphorus shorelines are Turkey’s most expensive housing market but most real estate investment is happening in the outskirts European districts that are themselves undergoing a transformation in terms of infrastructure, housing, and social facilities.
They also present some of the cheapest prices per square meter. Another reason investors like Istanbul is the market’s transformation presents many off-plan homes which offer a significant discount and structured payment plans.
As a tourism hub, it has miles of sandy beaches to offer house buyers and a state-of-the-art airport making it easy to get there all year round. The seaside resort of Belek is Turkey’s golfing hub, while places like Kalkan offer a luxurious lifestyle with modern architecture featuring in most villas.
The feather in Antalya’s cap is its diversity because it accommodates everyone from budget to millionaire buyers and offers a cosmopolitan, multicultural feel hence attracts many nationalities from Europeans to middle eastern.
Bursa: This region surprised many because it has only taken off in recent years in terms of popularity with foreign buyers. Yet it ranks in the top five destinations.
Comprising the main city centre renowned for its historical landmarks and small villages that belong to the UNESCO World Heritage Site list, it also offers potential since Mount Uludag is one of Turkey’s top skiing spots. Alongside the year-round lifestyle, Middle eastern buyers adore this area because it also offers many similarities in culture and traditions.
Other Popular Destinations: Proving to be a hit with British buyers, the Fethiye region commands fame for its places of natural beauty setting it apart from other places.Connecting within 1 hour to Dalaman airport, its prime position on Turkey’s Mediterranean coast makes it a prominent sailing hub.
Budget buyers prefer places like Ovacik and Hisaronu that offer low prices per square meter. Sitting a short distance from Oludeniz, they are a suitable alternative, because conservation regulations affect Oludeniz’s property market.
For the beachside destination with a touristic feel and amazing sunset views, buyers opt for Calis Beach, otherwise the main city centre offers the best shopping and nightlife scenes.
Meanwhile heading around to the Aegean side, Bodrum, the most popular place on the western coast comprises a town centre and 18 smaller coastal resorts.
Yalikavak is leading the property market because of its status as a major Turkish riviera hub, and the Palmarina mega yacht Marina. Budget buyers prefer Iasos, which sits close to Bodrum airport and other popular places to buy include Gulluk, Gundogan, Kadikalesi, and Gumbet.
Best for Luxury Property: Kalkan, a stable market on the southern coast presents some of the best luxury property in the country. With state-of-the-art architecture, and modern home technology, most villas for sale also feature infinity pools and floor to ceiling windows letting in that stunning Mediterranean Sea view.
To know more about buying property in Turkey, call us today and speak to an experienced agent to answer your questions or arrange a time and date for viewing. Also see our portfolio of homes for sales in Turkey, and for more information on any of them, just fill in the enquiry form.
Best Places to Buy Property Abroad: In this article, we look at a variety of publications to find out their recommendations of the best places to buy, citizenship by investment schemes and our own recommendations of countries presenting ideal real estate investment opportunities.