Do you dream of a holiday home in Turkey? Whether you are planning to move, for retirement or even for investment, Turkey can be a golden opportunity. Turkey is characterized by its great weather, a large number of bustling cities and beautiful coastal resorts, but one of the biggest attractions of buying a property in Turkey remains the low real estate prices in it.
In this article, we will provide you with information about everything you need to know about buying real estate in Turkey for foreigners and Turks, including the advantages, benefits and steps of buying a property and how much the average real estate prices in Turkey. We will start with a quick overview of the state of the real estate market in Turkey
The state of the real estate market in Turkey
The Turkish real estate market has witnessed a price increase over the past year, as real estate prices increased by 30% in early 2021, but the good news for those wishing to own a property in Turkey is that there is a recent boom in housing development and renovation projects, which can lead to an increase in stock Housing and real estate market.
There has been a rise in the demand for real estate in Turkey by foreign investors in the past few years, but it decreased due to the Corona epidemic, however, the Turkish real estate market continued with domestic demand in addition to the low interest value.
Everything about buying a property in Turkey
Buying a property in Turkey falls under Law No. 2644 of 2012, also known as the Land Registration Law which stipulates the conditions for buying any type of real estate: residential real estate, commercial real estate, agricultural land, or any other type of real estate. Foreign investors seeking to buy real estate in Turkey are subject to certain restrictions that they can find at Turkish embassies or consulates in their home countries.
Steps to buy a property in Turkey
The steps for buying a property in Turkey are summarized as:
- Choose and compare real estate advisors
- Communicate with advisors
- Find the right offer for you
- Negotiations and selection of payment plan
- Process completion and after-sales services
- Applying for Turkish citizenship
- Real Estate Management
How and how to buy real estate in Turkey
After satisfying the buyer’s wishes and obtaining his final approval to buy an apartment or real estate in Turkey through a real estate company, the legal procedures are initiated, as follows:
- Obtaining a tax number for the buyer from the relevant tax department.
- Opening an account in a bank that has agreements with Middle Eastern banks.
- Signing the contract between the seller and the buyer in the company’s office, and a lawyer can be appointed for those who wish to do so
- Attached to the basic contract is the property title deed in the name of the property owner in Turkey who signed the contract or his official representative, in addition to a copy of the project building permit, two
- personal photos of the buyer, a translated and certified copy of the buyer’s Turkish passport and a copy of the identity card of the seller of the property in Turkey as well, A portion of the property value is paid as a deposit to reserve the property.
- Then you carry out the procedures that take an average of 30-60 days to register the apartment, due to which the documents are sent to the security departments of the Turkish army for security approval.
- After the security approval is issued, a summons is made to go to the real estate ownership department and complete the registration of real property “by the state employee and in the presence of a sworn translator to explain the terms of the contract.
- The title deed and the key are duly delivered in the presence of the real estate advisor, and the rest of the property value is transferred or delivered in conjunction with the transfer of ownership of the property.
In the case of buying a property in Turkey in installments, the buyer must, according to the initial purchase agreement after booking the apartment, pay the first payment agreed upon with the construction company at the time specified under the contract, usually within two weeks from the date of signing the contract.
When the installments are paid, the buyer must come within a short period to receive the title deed and the apartment key.
In cases where an apartment is purchased in an apartment complex or an ordinary building, and the complex or building has obtained military approval in advance, the customer can receive the Tapu directly when paying the value of the apartment, or when paying the last installment in the case of buying a property in Turkey in installments.
When do I get the title deed or title deed?
The title deed is granted to the owner after paying the total amount agreed upon for the apartment in the contract. In the case of buying a property in Turkey in installments, you will receive the Tapu after the last payment. There are some companies that deliver the title deed after the initial payment, but the bond is included in a mortgage until all payments are made.
Does buying a property in Turkey grant residency
Real estate residence in Turkey is a document taken from the immigration departments in the Turkish states, allowing its owner to enjoy the rights of education, medical care and living in Turkey legally. This residence is temporary and needs to be renewed annually.
This residence permit is granted to foreign persons wishing to own and settle in Turkey, and the wife and family members of children under the age of 18 have the right to obtain a real estate residence permit.
Those who wish to obtain real estate residence in Turkey should note that the price of the property to be purchased must be at least $ 75,000 in large states such as: Istanbul, Ankara, Izmir, Bursa, Antalya, Gaziantep, Adana, and Mersin.
While the value of the property in the smaller Turkish cities must be 50 thousand dollars onwards, if the foreign investor wishes to obtain real estate residence in Turkey.
It should be noted that the real estate appraisal report should be equal to the aforementioned minimum to ensure the issuance of the real estate residency.
Documents required to obtain real estate residence in Turkey
- Application paper for real estate residence.
- Passport valid for at least 6 months
- A visa with an entry stamp to Turkey.
- Having what is known as DASK earthquake insurance for the property.
- Medical insurance sheet. It can be obtained from Turkish insurance companies.
- The family book is translated into Turkish, and certified by the Notary Public in Turkey.
- The title deed document registered in the name of the property owner.
- 4 personal photos.
- Having a fixed monthly income of at least $500 per month.
- Bank account.
Conditions for buying a property in Turkey
About 10 years ago, the conditions for buying a property in Turkey for foreigners were based on the principle of reciprocity. Approval of ownership is issued to a foreigner whose country agrees to the Turks buying real estate units there.
However, this law was amended in 2012, so that any foreigner has the right to own real estate in Turkey, except for citizens of a few countries for political reasons, such as the case of Syrians owning in Turkey.
Conditions for buying a property in Turkey:
- That the holders of Syrian nationality be able to establish a Turkish company first and then register the property in the name of the company, given that the company has a legal personality independent of its owner.
- The Turkish government has set some conditions under which foreigners can buy an apartment in Turkey, and these requirements are related to the area of the property as well as the area in question.
- The area of the real estate units you wish to purchase should not exceed 30 hectares or 10% of the area of the administrative region.
- And if you want to buy real estate in Turkey within a neighborhood close to the security and military areas; You must first obtain security approval to be able to legally start the purchase process.
While additional conditions were imposed on the ownership of some nationalities in the border and maritime areas, such as the Greeks and Russians, and on the quality of real estate such as agricultural lands, as is the case with the ownership of Egyptians in Turkey.
Conditions for buying a property in Turkey through agency
If you want to buy a property from outside Turkey remotely, you can then go through the acquisition process through an intermediary, after registering a legal agency for it at the Turkish Consulate in your country. This requires submitting an original copy of the agency concluded at the Turkish Embassy in your country, in your official language, With a copy of the agency translated into Turkish and certified by the Consulate.
Tips when buying a property in Turkey
Foreign investors who want to buy real estate in Turkey are advised to complete the following steps to ensure that they made the right choice:
- When you decide to buy a property in Turkey, visit the country in order to choose the right location
- Discuss your options with a real estate agent regarding property prices
- Hire a Turkish lawyer to check the property for any mortgage, especially when it comes to commercial property
- Foreigners can buy real estate remotely through a lawyer
- Foreign investors looking to buy plots of land in Turkey should know that they cannot buy more than 30 hectares of land
- Foreigners must have an insurance policy (also known as Dask insurance) when buying a property in Turkey
- The real estate tax tax when buying a property in Turkey is set at 4.4% of the total value of the transaction. Other related costs
With the purchase of the property, the registration and documentation fees can represent about 1% of the transaction
Costs of buying a property in Turkey
Lawyer: Prices vary depending on who you choose to use. If you need to find a solicitor skilled in buying property in Turkey, this list from the UK government will help you.
Translation Services: Some translators charge an hour while others offer a specific package intended for real estate purchases. Please note that translators in Turkey must be officially registered and licensed. Notarization offices in each region have a list of licensed translators or alternatively, we can recommend one for you.
Fee: 3% of the purchase price
Transfer tax: 4%.
Tapu registration (title deeds): $100.00
Notary Fee: $350.00
DASK Insurance: This compulsory earthquake insurance is required at the time of signing your title deeds. The cost depends on the square meter of your property. DASK for a two-bedroom apartment of 70 square meters is about 375 liras per year.
Military Checks: A formal request is made to the government to verify that the property you are buying is not within a military zone and that as a foreigner you are within the legal limits of the assets you can purchase. This has now been canceled for all foreign investments in Turkey as of August 6, 2018.
House prices in Turkey
Before buying a property in Turkey
Is an inspection trip necessary before buying a property in Istanbul?
Yes, an inspection trip is recommended for foreigners who want to buy real estate in Istanbul, in order to make sure of the acquisition. Since this option may not be at the disposal of a businessman from abroad, we recommend that you contact one of our Turkish lawyers and ask for support in this matter. An inspection trip can be undertaken by one of our lawyers in Turkey, along with an experienced real estate agent. This check has a preliminary condition and shows if there are any problems with the property you want to buy. In addition, due diligence regarding real estate is mandatory at the time of purchasing a property in Istanbul, and full legal advice is provided by one of our Turkish lawyers.
Buying a property in Turkey for foreigners
Turkish real estate law has some restrictions on the type and area of land that foreigners can purchase. The restrictions are as follows:
- Purchase a maximum of 30 hectares of land
- Buying real estate is not possible in military areas and security areas.
- Individuals who acquire land on which there is no immovable property built on it must submit a real estate development plan within two years of purchasing the land.
- For other issues related to real estate such as mortgage for individuals or companies in Turkey, you can submit an inquiry to one of our experts
The Land Registry Law regulates the purchase, sale and ownership of immovable property for foreign investors and those who wish to make these types of acquisitions should know the legal basis for investments in real estate.
According to the real estate law, when buying a property in the state, the buyer must transfer title from the owner. This is done at the land registry office corresponding to the town or property location. The purchase process begins with a preliminary sale/purchase agreement between the two parties that contains the main terms of the sale and gives both parties certain powers.
The sale agreement alone is not sufficient to transfer the ownership of the property When submitting an application to the Land Registry Office, the seller and buyer must submit the following required documents:
- Real estate title deed
- identity documents
- property value statement document
- earthquake insurance policy
- Pictures for seller and buyer
- Proof of payment of title deed fees and other taxes, if required.
Is it advisable to buy a property in Turkey?
- Referring to recent figures and statistics, the Turkish Statistics Center reported that Turkey has shown great strength and resilience in the face of the Corona pandemic by selling more than one million properties during the first half of 2020, which is a difficult number that Turkey was able to achieve compared to the stormy economic crisis left by the epidemic worldwide. .
- Returning to the statistics of real estate sales in Turkey before the Corona pandemic, that is, during the past year 2019, it recorded an increase of 85% during the first nine months of last year, as Iraqis alone purchased more than 781 properties in Turkey, followed by Iranians with 489 properties, and then citizens of the Russian Federation with 248 real estate properties, after which the citizens of Saudi Arabia and Kuwait came with 214 properties each separately.
When is the best time to buy property in Turkey
In the sales season, the developed companies increase their offers, which leads to an increase in the supply and thus the decrease in real estate prices in Turkey automatically, which constitutes the appropriate opportunity to seize it, but without neglecting to wait in choosing the appropriate apartment or villa in view of the many real estate options available to you.
Can foreigners buy a property in Turkey?
Of course, you do not need to be a Turkish citizen or resident in Turkey to be able to buy a property in Turkey. However, buying a house in Turkey does not automatically give the right to live there as foreigners still need to apply for a visa or residence permit.
There are also some restrictions that foreign buyers should know before starting to search for a property in Turkey, including:
- Foreign nationals cannot buy more than 30 hectares of real estate in Turkey
- It is not permissible to buy or rent real estate in military prohibited and military zones.
Is buying real estate in Turkey safe?
In the wake of increased foreign investment, the Turkish government has tightened controls to protect buyers and prevent real estate fraud. However, you should still take steps to protect yourself, including:
- Conduct a thorough search of attorneys and real estate agents, ensuring that they have the correct qualifications and accreditation.
- Work with English-speaking professionals, to avoid risks of miscommunication.
Can I buy a property in Turkey and obtain citizenship?
Turkey has a “golden visa” scheme that grants citizenship to foreigners when they make a minimum investment.
There are several ways in which you can obtain citizenship by investing in Turkey such as
- Including starting a business or depositing a certain amount in a Turkish bank.
- You can also buy real estate in Turkey and obtain citizenship, provided that you spend at least 400 thousand dollars (or its equivalent in other currencies). Once you buy your home, you will get a permanent residence card and you can apply for Turkish citizenship right away. You can receive your Turkish passport in less than 3-6 months
What is the approximate cost of a property in Turkey?
It largely depends on what you buy and where you buy it, although in general property prices in Turkey are much cheaper than in the UK.
For example, the average price per square meter for a city center apartment in Turkey is just £781. In the UK, it’s priced at £4,247.
The best places to buy real estate in Turkey
Turkey has a wealth of sunny coastal resorts, beautiful countryside and lively cities to choose from. Your ideal location for buying a property in Turkey depends on what you are looking for – a vacation home, a retirement home, or an accommodation in the city center.
Let’s pass through a few cities and resorts that are most popular in Turkey among foreign buyers.
- Istanbul: This bustling and vibrant city is one of the most popular areas for foreigners, with about 44% choosing it to buy a new home or investment property. It’s well connected and full of food, culture and history, although it’s understandably not the cheapest place to buy.
- Antalya: The second most popular choice for 21% of foreign property buyers is Antalya, which offers relatively cheap property prices. It has a large number of expats and attracts many tourists.
- Fethiye: Over 5,000 Britons live in Fethiye, which offers beautiful coastal scenery, excellent beaches, affordable property, and a taste of traditional Turkish life.
- Bodrum Real estate here is not the cheapest in the country, but there is something to suit most budgets.
- Ankara: If you are seeking to live in the city but find real estate in Istanbul very expensive, Ankara may be a good alternative.
- Bursa: Besides cheap real estate, the city boasts great historical sites, gorgeous mountains, green parks, and thermal baths.
How do I find a property in Turkey?
If you do not live in Turkey yet and are not familiar with the market, it may be a good idea to hire a real estate agent. An English speaking agent is recommended, as they can help you navigate the process and understand all the important details.
You should always do your research before choosing your real estate agent, and consider their credentials and qualifications. In Turkey, the law now requires real estate agents to obtain a certificate from a professional qualification authority.
To find a trusted real estate agent, start by narrowing down your search area – so you can choose an agent who works in that area.
Real estate websites in Turkey
Pitfalls to avoid when buying a property in Turkey
Here are some of the things to look for when buying a property in Turkey:
- Buying an ‘off-plan’ property without doing enough research – you could be at risk if a builder or developer goes bankrupt before your home is finished.
- Buying an investment property in an area where rental yields are low
- Some of the old buildings in Turkey are cheap and require extensive labor and investment to repair.
- It is always recommended to work with qualified and reliable professionals when buying property in a foreign country.
Now you can start searching and buying a property in Turkey knowing what awaits you, and you can communicate with the team of our real estate company istasya Property and take advantage of the free consultations provided by the real estate consultants of the company, which may save you a lot of time and money at the same time.