Real estate investment in Turkey in places to invest in Europe As Turkey occupies a privileged strategic position as it is located at the crossroads of Europe, the Middle East and Central Asia, and printing 83 million people, great opportunities for print and real estate developers in combining the construction sector, commercial and industrial production East, it is one of the The most promising real estate market in Europe, the slogan “location, location and location” is true in Turkey.
Advantages of real estate investment in Turkey
Investors in Turkey or anywhere else should be aware of all the advantages of real estate investment for foreigners there, as Turkey has many advantages that are unique to it from other countries regarding investment and the real estate market. A connection point between the continent of Asia on the one hand and the continent of Europe on the one hand, in addition to its distinct climate in most states of Turkey. Turkey is also characterized by the strength of its economy and the increase in the value of the Turkish lira in recent years.
But there are advantages to real estate investment in Turkey that attract foreign investors from all over the world to invest in Turkey
The 5 most important advantages of real estate investment in Turkey
1. Excellent return on investment and its increase over time
Real estate investment in Turkey provides a profitable investment return, due to the attractive force of tourism in Turkey, which appears in its best forms during the tourist periods and seasons, through the demand for renting homes in those seasons distributed throughout the year, so the considered investment in real estate is very popular During the tourism seasons in Turkey it can provide encouraging profits and good return on investment.
Real estate investment is generally known to maintain its real value, and the value of the property may often increase, bringing annual profits through investment returns obtained through resale or lease to 12% of the value of the original property.
The advantage of real estate investment returns in Turkey increases, especially if the ownership of real estate in Turkey is long-term, which means that the value of the property will rise after years, and thus the capital will .increase real estate investment in turkey.
In addition, investing in a country like Turkey is a safe investment, in addition to the numerous and continuous demands for rents in Turkey that make the additional income expected from renting the property a semi-constant income.
You can increase your profits by buying a property in Turkey by:
- Buying an apartment in Turkey in an area witnessing urban development and a continuous rise in real estate prices.
- Renting the property or selling it during the seasons that witness an increased demand for buying the property, as the profits are more in these seasons.
- Buying real estate under construction from projects under government guarantee, as its price increases upon completion or near completion of the project.
For sufficient information about buying and selling real estate, you can contact the team of Istasya Real Estate Company for a safe investment and a successful project.
2. The possibility of obtaining Turkish citizenship
You can obtain Turkish citizenship by purchasing any property with a value of 400,000 USD, whether the property is an apartment, office, villa or shop, and on reduced terms, which was considered a strong motive, especially for those coming from unstable countries to buy real estate in Turkey, even if it was accompanied by Increasing real estate prices in Turkey
The Turkish government has shown great seriousness in this matter, especially since a large group of investors obtained Turkish citizenship within only 90 days after completing the purchase process. Which encouraged this measure and other Turkish government facilities, many Arab investors and neighboring countries to shift significantly to real estate investment in Turkey to earn profit and obtain citizenship at the same time.
3. The Turkish government’s support for the real estate sector
One of the advantages of real estate investment in Turkey is that the Turkish government has attached special importance to the real estate sector through many real estate campaigns in the past years, and the President of the Republic of Turkey “Recep Tayyip Erdogan” made a special appeal in 2017 to revitalize real estate companies all over Turkey by organizing many Real estate promotion campaigns, the largest of which is offering to sell apartments all over Turkey in comfortable installments of up to 240 months.
The most important facilities provided by the Turkish government in the real estate sector
- Some real estate companies sought to permanently cancel the interest, under the direction of the President of the Republic.
- Reducing the advance payments for those wishing to own property in installments, and the percentage was withdrawn from 25% to 20%.
- Exempting foreigners and expatriates from value-added tax when buying real estate.
- Turkish law gives the foreign investor the right to obtain real estate residence for him, his wife and children in return for buying a property there.
- Granting the right to apply for Turkish citizenship and a Turkish passport to a foreign investor who owns a property worth $400,000.
4. The Turkish real estate market is full of promising and distinguished opportunities
The real estate market in Turkey has provided many diverse opportunities and options. Diversity is one of the main reasons for the strength and distinction of real estate in Turkey due to its vastness and the different nature and climate of its cities, in addition to the strength of the infrastructure, which means the multiplicity of real estate options in Turkey, and its competition in prices, all of this gave increasing opportunities In Turkey real estate, from east to west, and from north to south, whether it is commercial real estate, such as offices and shops, or residential, such as villas and apartments.
And due to the continuous foreign demand, the prices of apartments and real estate in Turkey have increased, which has boosted real estate investment opportunities in Turkey.
5. Real estate prices in Turkey are cheaper compared to prices in Europe
Real estate prices in Turkey are much cheaper than in Europe, in addition to the infrastructure advantages that are close to the structure of developed European countries.
Also, Turkey’s real estate is suitable for all budgets, with a number of facilities and incentives that make investing in Turkey an encouraging opportunity, in addition to various attractions that attract attention in Turkey such as the wonderful climate, the promising economy, the huge real estate market, and a number of tourist and historical attractions that Attracting tourists from all over the world, all this makes investing and residing in Turkey a profitable and ideal option.
Types of real estate investment in Turkey
First: real estate investment
- Investing in residential real estate
It is known that the prices of residential real estate in Turkey have risen significantly in recent years, whether it is apartments, villas or residential land, so real estate has become an important investment.
The real estate market in Turkey witnessed a significant rise in apartment prices, especially during 2021, which recorded a rise in investor demand for apartments in Turkey.
Domestic market demand reached its peak in the last months of 2021, in parallel with the reduction of interest on home loans due to the reduction of public interest in Turkey.
Real estate reports have monitored significant changes in apartment prices in Turkey, reaching 100% in some areas. For example, the average price per square meter for apartments in Besiktas during October 2021 was 27.521 TL.
As for investing in villas, Turkey, with its beauty and climatic diversity, offers distinctive options through high-end and modern villas with excellent specifications.
As for investing in residential lands in Turkey, many investors prefer to invest in residential lands instead of buildings as they prefer to build their projects on empty lands according to their designs.
2. Investing in commercial real estate
In recent years, the high demand for commercial buildings for various purposes has contributed to the increase in real estate prices. Buying commercial real estate for investment in Turkey has become one of the most profitable options.
Commercial real estate in Turkey is also characterized by shops with various options for those who want to do business, and invest in shops by renting them, or even through resale, which brings investors a rewarding and profitable financial return.
Turkey’s hotels are among the most popular commercial real estate with great returns, thanks to Turkey’s unique geographical location and picturesque nature, and its mild climate in summer and winter, which makes investing in tourist real estate in Turkey a profitable option.
Turkey, which ranks sixth among the world’s largest preferred tourist destinations, has a strong network of world-renowned chain hotels and world class ratings, which makes investing in Turkey’s hotels even more important.
And the picturesque nature, and its mild climate in summer and winter, which makes investing in tourist real estate in Turkey a profitable option.
3. Investment in agricultural real estate
Agricultural investment in Turkey is a successful investment, as Turkey is one of the countries that support and develop agricultural investment and provide various facilities. Also, agriculture in Turkey is one of the country’s economic resources. It has factors and components for the success of agricultural investment, including large, diverse and available crops and its strategic location for export.
1. Real estate investment for residency
- It is a medium-term renewable residence granted to foreigners who have bought a property in Turkey, usually for a year; Spouse and children under the age of 18 are entitled to this residence permit.
- Real estate residence is similar to tourist residence but easy to renew.
- The holder of the real estate residence permit can settle in Turkey, but this does not allow him to apply for Turkish citizenship unless the property is worth 400,000 USD.
- When renewing the real estate residence permit, there must be a TAPU document that granted the residence permit.
2. Real estate investment to obtain Turkish citizenship
- On September 18, 2018, Turkey granted foreign investors the right to apply for Turkish citizenship if they have a property valued at $250,000, and the decision was amended this year 2022 to become $400,000.
- The percentage of real estate purchases for obtaining citizenship amounted to more than one-fifth of real estate investments in Turkey in 2021.
- Istanbul accounted for 80.1% of real estate investments to obtain Turkish citizenship, ranking first among Turkish countries.
- Antalya came in second, Ankara third, Yalova fourth, Mersin fifth, Izmir sixth, Bursa seventh, Mugla eighth, Samsun ninth and Sakarya tenth.
Third: Real estate investment with a return
The rate of return on real estate investment in Turkey is considered one of the highest rates of profit in real estate investment in Europe, for many reasons, including:
- Turkish real estate prices are rising steadily annually due to the high demand for real estate investment in the Turkish market.
- A low tax rate is applied to the profits of real estate trading in Turkey.
Considering the above factors, the profit of real estate in Turkey varies compared to the region, the quality of the property, and the investment region.
1. Low-return real estate investment
Such as: buying or renting an apartment or buying and renting a store.
2. Real estate investment with average returns
Such as: buying and renting an apartment or villa in a tourist area, buying a large store in a lively area or a large shopping center, or buying a restaurant or cafe with average returns.
3. High-return real estate investment
Such as: the purchase of large facilities, such as a hotel, hospital, factory, or the purchase of part of a large commercial complex, as well as large real estate investments such as the purchase of land and the establishment of a large residential or commercial project.
Real estate investment steps in Turkey
After the foreigner confirms that he is allowed to own real estate, buy homes and invest in real estate in Turkey, and that he meets all the conditions, then he can start the ownership procedures to transfer ownership to him, through the following laws and steps of real estate ownership in Turkey:
The owner of the property or his representative must submit an application to the Directorate of the Land Registry in the area in which he wants to invest, and a serial number is taken from the Land Registry and the Directorates give this number before noon, and if the other procedures are not completed on the same day, the number is kept Until all required paperwork is completed.
What are the documents and papers required to own a property in Turkey?
- The property ownership contract in Turkey contains detailed information about the property.
- The passport of the foreign buyer and a copy of it translated into Turkish.
- A document stating the value of the property, and this document is granted by the municipality of the area in which the property is located
- An earthquake insurance policy, whatever the nature of the property
- Personal photos: a photo of the seller, and two photos of the buyer, and the photos are required to be taken not more than a year ago, and the dimensions of the photo must be 6 * 4
- Bring two witnesses to the contract, and if one of the parties to the contract does not speak Turkish, a sworn translator certified by the Turkish government must be brought.
- In the event that there is a power of attorney for one of the parties to the contract, and the power of attorney contract was signed outside Turkey, the original copy of the contract must be brought along with a translated and certified copy from the Noter office.
How to register the contract and transfer ownership to the buyer
- The buyer’s presence in person in Turkey to sign the property purchase contract, or his official representative to take the steps for the transfer of ownership.
- Extracting a tax number and it is obtained from any tax department in Turkey, which is a number given to every foreigner who wants to buy a property in Turkey, and the number contains the personal information of the foreign citizen coming to Turkey with the aim of facilitating official transactions in the process of transferring ownership to the buyer.
- Extract the real estate appraisal report and get it from real estate appraisal companies approved by the Turkish government and registered with the Land Registry.
- Opening a bank account in a Turkish bank, in order to transfer the amount of money from the country of the resident to the Turkish bank
- Submit a translated copy of the buyer’s passport to the Turkish language, certified by a notary, and its cost (approximately 27 US dollars), in addition to 6 photographs similar to the size of the personal photo in the passport
- Then the seller and the buyer go to the real estate office “Tabu” so that the seller cedes the property to the buyer, then the buyer receives the title deed and the key to the property, and this process costs (about $50).
- If the property is not ready for delivery yet, such as buying a house under construction from a real estate company, here the title deed is not delivered to the buyer until after the house is delivered to him.
- Paying the property ownership tax in Turkey, which is approximately 4% of the property price, the seller pays 2% and the buyer pays 2%
- Real estate registration and its advantages:
- Enabling others to know the legal status of the property.
- Not giving the seller the opportunity to sell the property more than once.
- The possibility of taking a loan from the bank on the property, because the banks do not grant any loans except on the property, and the ownership is not proven except by registering in the real estate registry.
Real estate investment risks in Turkey
The most important risks and negatives that can face investors in Turkey
- Investing in real estate that is not suitable for investment
- Delay in registering property under construction
- Change in the exchange rate and the loss of the Turkish lira from its value
Disadvantages and disadvantages of investing in Turkey
- The tenant stops paying the monthly rent or delays paying the value of the monthly rent for the property.
- Misunderstanding market prices or buying a property at a price that violates the nature of real estate prices in the same area
- The capital gains on this type of investment are usually long-term.
Pros of real estate investment in Turkey
- Obtaining a fixed, continuous and guaranteed monthly financial return.
- An increase in the value of the capital or an increase in the value of the property in the long term, that is, the value of the property after several years will increase and therefore your capital will increase.
- This type of long-term investment is known as additional savings for retirement and a guarantee of the family.
- The increasing and continuous demand on the rental market, whether the property is new or old, which guarantees a steady additional income.
- Obtaining Turkish citizenship by owning a property with a division of $ 400,000.