For a more precise answer to how much is property in Turkey, potential homebuyers should narrow it down to a specific region. Like many other real estate markets, the purchase price varies from villages to towns to cities. Considering Turkey is the 37th largest country, any home buyer has many destinations to choose from. Many buyers ask us if the property is cheap in Turkey, and our answer is always yes, especially when comparing with other markets like the UK, America, or Spain.
With every house-price set in Turkish lira, the market's bottom end averages out at £40,000. However, look at luxury properties, and there is no limit with some mansions in places like Istanbul and Bodrum clocking up seven digits. It is more expensive to buy in cities. Still, other factors also affect the housing price index. New property buyers would do well to learn about the area they plan to invest in to maximise their potential capital appreciation. Knowing this often leads to the next question.
The first thing to know is that Turkey only modernised its real estate market about 20 years ago. Up until then, new construction was a rarity, and mortgages were not available. So, the market is still in its infancy. Secondly, look at the destination carefully, and areas with mass new construction have an abundance of housing which taps into the supply versus demand business model. Lastly, constructions materials and legal costs are cheaper than in other countries, and the savings knock on the pricing index. Knowing this, let's look at the budget and luxury markets more in-depth.
Look at the established central districts like Fatih and Beyoglu, and a house will cost at least £1000 per square meter. Other communities like Sariyer are also associated with luxury housing and, likewise, command a higher property-price. However, Istanbul is reinventing its housing market, with new build constructions in outskirt European districts. With upgraded metro and transport links, these locations provide an ideal choice for those who want to get on Turkey's largest city's real estate market but have a set budget. Starting prices of £50,000 for a one-bedroom apartment also appeal to first-time Turkish and foreign buyers.
Much hype surrounding these areas focused on the new airport and planned canal route, which has attracted real estate investors worldwide. However, local councils have also invested millions in upgrading their districts to becoming family-friendly places to live. A surplus of housing keeps prices down, but any first-time buyer who plans to keep their perfect home for at least ten years will see an opportunity for capital growth. Districts to look at include Beylikduzu, Esenyurt, Basaksehir, Buyukcekmece and Buyukcekmece, all sitting on the western face.
Meanwhile, head over to the Mediterranean Kalkan, and the housing market is different. Rules and regulations prohibit tall high-rise skyscrapers, and a distinct lack of land for expanding and building pushes prices of houses for sale in Kalkan up. It's rare in Kalkan to find anything under £100,000, and although apartments come up for sale, much hype centres on large villas.
The architectural style also makes them stand out when compared to other Mediterranean districts. Kalkan bay elevates the closer inland you go, and this lays the ground for marvellous views from most locations. Hence architects often design front-facing family homes with floor to ceiling windows and infinity pools, taking in that all-encompassing sea view.
If money is no object and you want to join Turkey's elite and influential families' social circles, look no further than the Ottoman Yali mansions on the Bosphorus. Your new neighbours will be millionaires, billionaires, Saudi princes, and long-standing Turkish families whose name often appears on Forbes richest people list. When looking at all properties for sale, know that Ottoman yalis command a high price for two reasons. Many were built during the Ottoman Empire by wealthy and influential people often connected to the sultan. Second, their wooden style of architecture isn't used any more, making these homes for sale antique dwellings but with style and finesse. One grand mansion, the Erbilginler Yali, sold in 2015 for a staggering 100 million euros.
The above information gives a good guideline on how much it costs to invest in properties, but buyers should also factor in closing-costs and legal fees to ensure they stay within their budget. These include a lawyer, appraisal, notary, translator, valuation, stamp duty fees, land registry fees, title-deed taxes, and for new homes, utility connections. This article talks more about them and the step-by-step process of finding a property in Turkey and buying it.
The first step is to begin your property search. Arrange a time and date for viewing homes in any area of Turkey by using the chat feature at the bottom right-hand screen. Also, start your search now by browsing our property listings of apartments and villas for sale. Each listing includes details like area information, photos, number of bedrooms and bathrooms, description, and map location. To receive further information about buying a home, complete the "request more details" form on the right-hand side.
Some buyers look at rental property investment to cover purchasing costs. Otherwise known as buy to let, intense research is needed if you go down this route. Advertising flats to rent as a holiday home requires creative marketing skills to ensure high occupancy rates. Additionally, many coastal tourism resorts are flooded with short term properties to rent; hence you must drop your potential rental income.
Long term lettings require careful vetting of your tenants, and landlords have legal tenancy obligations to adhere to. Both long term and short terms renting means paying income tax as well as declarations that renters are in your property. In some places, property management teams offer rental property services for landlords who don't live in the same country. Currently, Kalkan is the destination achieving the highest rental yields in Turkey for holiday-lets.
International property investors have a keen interest in Turkey because property prices are lower than those of famous places like Spain or Portugal. However, to make a profitable real estate investment now is not the time to think about flipping houses for sale. When buying an investment property, think of it as a mid-to-long-term project, simply because many places in Turkey have an abundance of new housing on the market; hence annual growth is slow. Additionally, the property type will make a difference. Furnished resale homes only offer annual appreciation, while off-plan projects allow property investment buyers discount for an early purchase.
In this article, we look at regions leading the Turkish real estate market and what makes them stand out as desirable places for home buyers and anyone looking to invest in property. From Istanbul to the luxury hub of Yalikavak, to neighbourhoods of Antalya, each has something unique to offer, and the information will help you decide if it is the ideal place to find your dream home.
We are Spot Blue, an international real estate agent specialising in property for sale in Turkey. We've helped hundreds of buyers and sellers with investing in property abroad. We hope this article has given you more insight into how much is property in Turkey, but call us today if you would like to know more about Turkey's investment properties. Additionally, follow us on Facebook to stay up to date with emerging property news from Turkey.