Around the world, home buyers are looking at overseas property investment in Turkey. A wide range of apartments, penthouses, and villas for sale across the country are tempting Brits, Germans, Russians, Asian and Middle-Eastern nationalities to invest in the country. This is not a newfound fad either, because, in 2018, foreigners buying property hit record sales. While domestic sales have slowed down because of high-interest mortgage rates, masses of foreigners buying homes prop up the housing market.
Some look for a positive cash flow via renting it out; others look to make money from investment houses and their market-value, others want to retire here and are looking for their home from home. If you are one of the thousands looking for a residential real estate investment, do your homework. The vast market covering regional hotspots includes many types of homes like luxury, budget, modern, and traditional. By knowing the market, you are entering; you can make the right decision for long-term capital appreciation and only buy assets that boost your financial portfolio.
Property Investment in Turkey
What Drives Foreign Sales?
To be clear, foreign buyers have flocked to Turkey for decades. Affordable prices per square meter and promises of a comfortable beachside lifestyle have even led some foreigners to move to the country, and they now live here all year round. However, the latest boost comes from the lucrative exchange rate that for foreigner buyers converting world currencies into Turkish Lira pays off big time. Buyers are getting twice as much for their money than they were five years ago. 2018 also saw another new law many foreigners welcomed, and that was adjustments to the citizenship investment market scheme.
Turkish Citizenship by Property
Before 2018, property abroad, investors looking at Turkey’s citizenship real estate scheme had to invest 1 million USD. Turkey was one of the world’s most expensive country for investors looking to live and work by buying an apartment or villa legally. Needless to say, the scheme received little interest, so the government dropped the minimum investment level by over three quarters to 250,000 USD. Investors flooded to the Turkish housing market. The only condition is that buyers must keep their home for at least three years. Read about the Turkish citizenship investment scheme.
Is Property in Turkey a Good Investment?
So affordable property prices, a favourable exchange rate, citizenship investment schemes and that comfortable Turkish lifestyle are driving sales to foreigners, but does the market offer potential return on investment? If you plan on owning the house long term, yes, it does but now is not the time to be flipping houses. Regions like European Istanbul are also attracting investors because of planned mega-projects like the canal route. Still, it will be years before this is complete, so don’t expect a sudden rise in investment house values.
It is also wide not to look at renovating, since the cost of these and legal paperwork far proceeds, the potential property value and capital growth. Turkey is again reinventing its real estate investing market with the off-plan and new builds, and new homes are not scarce, so expecting to make a short-term profit is unrealistic. It would be best to look at this as a five-to-ten-year investment.
Rental Properties to Make Money
Sometimes, a real estate investor rents to either long-term or buy to let holiday tenants for financial freedom. This is a wise move if you don’t plan to use the property, or it is a second home. However, leasing involves another set of government leasing rules, taxable income and creative marketing skills to achieve a decent occupied rate. Some investors hire a property management company to handle the entire process, including cleans, welcome packs, key holding and declaring income.
Still, this downside financially taps into your passive income. If you plan to go down this route, the key to a lucrative income is to investigate rented yields for that region, be aware this is not a route to get-rich-quick, and check out the existing market for rental property. Some places are saturated with them, especially the holiday home sector in tourist resorts.
Best Areas to Invest in
This depends on your reason for buying. Western expats mainly buy in Aegean and Mediterranean coastal resorts, because they like the seaside lifestyle, and multicultural, cosmopolitan atmospheres. Certain areas are also more popular with specific nationalities than others. For example, Russians and Germans prefer the Antalya region. While many Brits have bought in Altinkum, also known as Didim, hence its nickname of “Little Britain.”
Meanwhile Middle -eastern nationalities gravitate towards places like Bursa, and Yalova in Northwest Turkey, and Trabzon in the northeast because they find many similarities in the culture and day-to-day lifestyle. If you want a buy-to-let income, it is obvious you need to invest in an area popular with tourists or working professionals who commute and rent. Regardless of the reason for buying two regions led the way in-house sales to foreigners.
Istanbul: Comprising 39 districts, Istanbul leads the way with the most amount of houses sold to foreigners. Popular areas for buying include Avcilar, Buyukcekmece, Kucukcekmece and Esenyurt on the European side. Here, mass lifestyle residences featuring a variety of on-site communal facilities enjoy swimming pools, landscaped gardens, gyms, and saunas attract apartment and villa buyers. Real estate investors also prefer them because many are off-plan and offer interest-free credit on long term payment plans. See properties for sale in Istanbul.
Antalya: Comprising a city centre, and smaller coastal resorts, this is the second most popular place for foreign houses sales but also tourism, which makes it ideal to buy a house as a holiday home or to live in a calm environment. The entire region sits on the illustrious Mediterranean coast, and popular resorts include the golfing hub of Belek, historical Side, luxurious Kalkan, and bustling Alanya. Apartments and villas for sale in Antalya.
Other Regions: The Bodrum peninsula, a popular hub with Turkish and foreign buyers, comprises smaller resorts like upmarket Golturkbuku and stylish Yalikavak, the latest hotspot for those sailing the Turkish Riviera. Meanwhile, back over to the Mediterranean coasts, many nationalities prefer Fethiye for an all-year-round home. Buying an apartment or villa in areas like Calis beach, the town, Hisaronu and Ovacik, this destination is perfect for budget property buyers.
How to Invest in Turkish Property
Our property listings include many resale, new build, and off-plan homes. Whether you are looking at bargain villas for sale, a bungalow, single-family duplex, townhouse, or furnished apartments for sale, it is on our books. Each listing includes specific details like photos, map location, and critical features of that home. Fill in the enquiry form to receive additional information via email. If you are already in Turkey and would like to arrange a viewing time and date, or to speak to a sales representative about the real estate market, call us. Our step-by-step guide to buying an investment property will also be of use. Alternatively, follow us on Facebook to stay updated with property news.
About Us: We are Spot Blue, an international real estate agent, who helps people looking for investment opportunities and to enter the property market abroad. Our local knowledge of many areas in Turkey helps us advise buyers investing in real estate to make a wise, profitable choice. Call us today, and we will match you with your ideal property investment in Turkey.