Around the world, house buyers are looking at property investment in Turkey. A wide range of apartments, penthouses, and villas for sale across the country are tempting Brits, Germans, Russians, Asian and many Middle-Eastern nationalities.
This is not a new-found fad either, because, in 2018, foreigners bought 40,000 homes, marking record sales. While domestic sales have slowed down because of high-interest mortgage rates, masses of foreigners buying homes across Turkey look to make 2019, even more successful.
Obviously, it goes without saying, that if you are one of thousands looking to invest in Turkey’s real estate market, you need to do your homework. The vast market covering property hotspots like Istanbul, Antalya, and Bursa 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.
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 Turkey’s citizenship investment scheme.
Before 2018, investors looking at Turkey’s citizenship real estate scheme had to invest 1 million USD. This made Turkey one of the world’s most expensive country for investors looking to legally live and work by buying an apartment or villa.
Needless, to say, the scheme received little interest, so Turkey dropped the minimum investment level by over three quarters to 250,000 USD. This evoked a flood of investors to the Turkish housing market. The only condition is that buyers must keep the property for at least three years.
So affordable 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 to keep the house long term, yes it does. Now is not the time to be flipping houses. Regions like European Istanbul are also attracting investors because of planned mega-projects like the Istanbul canal route, but it will be years before this is complete, so don’t expect a sudden rise in house values.
Turkey is also reinventing its real estate 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.
This depends on your reason for buying. Turkey’s large expat population 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.
Antalya: Comprising a city centre, and smaller coastal resorts, Antalya is the second most popular place for foreign houses sales but also tourism, which makes It ideal for house buyers who want a holiday home or to live in a calm environment. The whole region sits on the illustrious Mediterranean coast, and popular resorts include the golfing hub of Belek, historical Side, luxurious Kalkan, and bustling Alanya.
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, Fethiye town, Hisaronu and Ovacik, this destination is perfect for budget buyers.
To find your ideal property investment in Turkey, browse our portfolio of homes for sale. Each listing includes specific details like photos, map location, and key 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 Turkish property will also be of use.