Have you seen the importance and advantages of real estate investment in Turkey? Recently, with all the facilities that Turkey offers to foreigners on its soil, it has become the first destination for many capital owners.
In this article, the editorial team at Hana Real Estate has prepared a detailed report on everything related to real estate investment in Turkey. We will shed light on the most important reasons that lead to its success and distinction.
Why invest in real estate in Turkey?
Many advantages you can get when you choose Turkey for real estate investment, and as a result, Turkey has become a destination for foreigners and Arabs. In recent years, the Turkish real estate market has flourished and has grown significantly, outperforming many countries around the world, including Europe and America.
If you are interested and familiar with everything related to the real estate market in Turkey, you will know that there is a noticeable annual increase in the volume of properties sold to foreigners, and this is a clear indication of the importance of this ownership in this country.
Pros of investing in Turkey:
Through the following paragraphs, we will provide you with all the advantages that you will obtain through real estate investment in Turkey, in response to the questions of many foreigners and clients that come to us.
First: Obtaining real estate residency:
Obtaining this residence is very easy, as it is only required that the property be designated for housing, whether it is an apartment, a villa, or other types of residential real estate, and there are no other conditions related to the price of the property, its area or other details.
– This residence permit is granted to all family members, i.e. the wife and children under the age of eighteen.
– It allows its holder to move between the Turkish states without obtaining a travel permit.
– It is possible to travel to and from Turkey without a visa.
– Take advantage of some aspects of the services that are provided to citizens in Turkey, such as medical, educational and social.
– It is a short-term stay, but it can be renewed annually.
Second: Applying for citizenship:
One of the first reasons that encourage foreigners to invest in real estate is to obtain Turkish citizenship. Despite the many ways and methods of obtaining it, buying real estate is the fastest and best way, as you have achieved two goals at the same time (investment and citizenship).
Below we will answer your question about the conditions that must be met in the appropriate property to obtain it:
– Its value shall be at least two hundred and fifty thousand US dollars.
– Commitment not to sell it before the lapse of three years.
– Buy it from a Turkish citizen or a Turkish construction company.
– Verify that the property was not used earlier to obtain it.
– Pay its price through a bank in Turkey and obtain a receipt.
It is worth noting that recently there has been a change in the law on obtaining this citizenship through real estate investment, and the minimum property price has been raised to four hundred thousand US dollars, but the decision has not yet been implemented.
Third: The future of real estate in Turkey:
The general characteristic that characterizes the real estate markets is that they do not settle on one condition for a long time, but rather fluctuate constantly and record an increase in their prices, especially if we are talking about a country that is witnessing tremendous development and advancement.
If you are wondering about real estate prices in Turkey, it is expected to rise during the coming period for several reasons, the most important of which are:
– High construction costs.
– High population density that exceeded 84 million people.
– Quality and modernity.
– Continuing to grant citizenship through real estate investment.
Fourth: Advanced Infrastructure:
The Turkish government pays great attention to infrastructure projects and is working to establish the most important projects that compete with European countries, such as Istanbul’s new airport, which is one of the largest and most modern airports in the world, in addition to highways and huge hospitals (Bashakshehir Medical City), which ranked third in the European continent.
Did you know that the areas close to these important projects and others are more expensive than real estate far from them, so one of the advice that is given to investors wishing to start their investment project in Turkey is to make sure to choose a special location in order to ensure that its value increases over time.
Other reasons that encourage investment in Turkey:
The above mentioned are the main factors that push foreigners to own real estate in Turkey, but this is not all, as there are many other reasons and motives that we will present through the following paragraph:
At the outset, the Turkish government has spared no effort in making amendments to the laws to be appropriate with the interests of investors and foreigners and in order to attract through foreign investments. Among the most prominent and most important of what it has provided:
– Exemption from value added tax.
– The real estate appraisal document that controls real estate prices.
– Tax cuts in contrast to European countries.
– The laws that apply to Turks also apply to foreigners without any discrimination.
– The possibility of foreigners bequeathing real estate to their children.
– Abolish the principle of reciprocity.
– Monitoring the construction of real estate projects to ensure adherence to quality standards.
The geographical location of the Turkish state is also an important advantage, as it is in the middle of the continent of Africa – Europe – Asia, which is close to the Arab world and the brown continent, and its extension on two continents gave it a lot of importance (its location linking Europe and Asia).
The important role of the Turkish economy cannot be denied, as it is considered one of the most important economies in the world. Over the past years, it has achieved great growth, according to a European study. By 2030, the Turkish economy will be in the top five globally.
It is important to know that real estate prices in Turkey are low compared to prices in Europe, with large percentages of more than 60% (according to the American newspaper The Times).
Importance of real estate investment:
Investing in real estate is not the best option in Turkey only, but also everywhere in the world. It is safer than bonds and stocks, because the property cannot lose its material value, it may decline in some cases due to a certain economic crisis or other, but within a short period you find it regains its value, it is not affected like many others.
Real estate investment does not require a lot of effort and time is enough to choose thoughtfully and then wait for some time until prices rise, and do not forget that there are many investment ideas, the most important of which is renting it to get a fixed monthly return or reselling it, and you have to choose and act according to the market situation and prices to achieve a profit for you If it is difficult for you to act, you should use an expert and reliable real estate agent to help you and give you advice.
Important tips when investing in real estate in Turkey:
Certainly, the goal of investing is to obtain abundant profit, and this can only be achieved when you adhere to some rules, and through the following paragraph we will present to you the most important of them.
First: We have already mentioned the importance of choosing a strategic geographic location, for example, that it be close to public transportation lines – schools and universities – and that it be close to recreational places.
Second: It must verify that there are no problems arising from it, such as debts or real estate seizure or others that lead to a negative impact on its value and investment importance.
Third: New properties are considered the most suitable for real estate investment because their prices are growing very quickly and the demand for them is great, while if you choose resale properties, you will have to make many repairs and restorations and therefore you will pay a lot of additional costs, and add to your information that it is difficult to make modifications or radical changes.
Fourth: Beware of buying a property from an unreliable party, as you will be a victim of real estate fraud and scams.
Fifth: It is not recommended to buy a spacious apartment because the demand for it is not as great as it is for small properties, and small apartments can be sold easily when you want to.
See the types of real estate investment in Turkey:
Among the advantages that push a foreigner to buy real estate in Turkey is that there are many options available, meaning that you will not have limited options, and this meets the desires of all investors, tastes and budgets.
First: Residential real estate investment:
The first option for the majority is the residential apartments, and the reason for this is that the community’s need cannot be interrupted, and as a result of the great demand for them, significant increases in their price have been recorded, and this has emerged during the past year 2021 AD, In recent months, the real estate market has witnessed a high volume of selling.
It is worth noting that in some areas, prices have increased by 100 percent, and among these areas is Besiktas, which is located on the European side of the city, and the Basaksehir region, which recorded a 45% increase during the last three years, and if you think that the matter will stop here, you are in a big mistake because according to specialists The prices will increase upon the completion of some projects close to it, such as: the new Istanbul Water Canal.
Many types of apartments fall under the name of residential real estate, most notably the residential complexes, which are the most in demand among other types of apartments because they are modern in construction and provide those who live in them with a comfortable and elegant life.
If you are looking for luxury and sophistication, we advise you to choose penthouse apartments, which are considered a luxurious option, but their prices are somewhat high, which made them suitable for the rich and those with high budgets. There are also duplexes – triplexes – townhouses – villas – studio apartments.
Second: Commercial real estate investment:
Investing in commercial real estate is one of the most important things that the investor resorts to choosing. The nature of tourism in Turkey has given it great importance, and it is of many types, the most important of which are: offices – shops – malls – shopping centers – offices – stores – restaurants – cafes and others.
The prices of this type of real estate are higher than the residential apartments, and it is also possible to obtain abundant profit and high returns through renting them, What should be mentioned in this regard is that many investors choose them because they will not have to deal with the tenants and find solutions to their problems or repair any damage to the property because each of them coordinates the property according to what suits his work.
How do you get an abundant profit when investing in real estate?
Let us give you a very important tip which is that you should buy the property when the opportunity is right to get a low price and resell when the prices are high and therefore you should seize the opportunities well and know the most appropriate time to act on it.
There is a point that is important to keep in mind, which is that it is not a requirement that you always get high returns, in some cases your profits are limited, for example: when buying real estate in cheap areas or the like.
The most important ideas for real estate investment in Turkey:
Before you start your investment in Turkey, learn about the best investment forms, which we will talk about in detail through the following paragraph.
First: the furnished apartments:
Millions of expatriates from Arab and foreign countries come to Turkey annually, some of them aim for tourists and others seek treatment – and some seek work or study, and therefore a large group of them are looking for furnished apartments to have a comfortable life, especially if their residence is temporary. (It is known that the prices of furnished apartments are higher than the prices of vacant apartments).
Types of furnished apartments:
In turn, these apartments are divided into many options. First: we have student apartments, and you rarely find them unfurnished. At least they should have sofas, a bed, a wardrobe and some kitchen items. Second: apartments that are classified as tourist, during the tourism seasons there is a great deal of demand for them. Third: hotel apartments Those coming to Turkey choose to reside there, especially those who want a short stay, so it must be furnished so that the foreigner can enjoy comfort and luxury.
Second: Land investment:
One of the most important and prominent successful real estate investment ideas in Turkey is (buying a plot of land) where you can build a residential complex or your desired project, the returns that you can get by purchasing land are high.
Third: Investment of complete buildings:
There are those who choose to invest in entire buildings and use them for commercial purposes, such as an educational institution, a health center, a mall, and other ideas.
Important tips for investing in Turkey:
In fact, there is a lot of information that you should know before buying real estate in Turkey, so below we will talk about the most common mistakes that real estate buyers may make and we will attach them to the solutions that must be followed.
1 – Beware of being a victim of real estate fraud:
There is no doubt that buying a property in Turkey brings you many advantages and benefits, but this does not negate that there are many negative aspects that you should beware of, the most important of which is (real estate fraud) In order to be away from it, you must familiarize yourself with its most prominent forms, and this is what we will refer to immediately:
– Deception of the buyer that the property is suitable for obtaining Turkish citizenship.
– Asking for a higher price for the property than it is worth.
– Informing the buyer that the property offers him a high return.
– Impersonation of the property owner.
– Forging papers.
2 – Signing contracts within official departments:
One of the important tips that must be taken into account is to sign all contracts within the Tapu Department, because any document issued by others is unofficial and not recognized at all, even if it is from the Notar office.
3 – Extracting the real estate appraisal document:
One of the basic conditions that must be adhered to when buying real estate in Turkey is to obtain a real estate appraisal report that determines the real value of the property and avoids paying a lot of money in an incorrect location.
What you do not know is that this document contributed to controlling real estate prices and prevented sellers from manipulating prices, and it is imposed on everyone who wants to own (in the past, it was only imposed on those who wanted to obtain Turkish citizenship through real estate investment).
4 – Do not rely only on yourself in research:
There are those who believe that buying real estate is one of the easy things that can be done on your own without the help of a professional and experienced company in the real estate sector, as it saves you a lot of effort, time, fatigue and money.
In this context, it is necessary to talk about a very important aspect, which is that with the increase in the demand for buying and owning real estate in Turkey, real estate companies and real estate agents have increased with it, and choosing them has become very difficult. Certainly, not all of them are of equal importance and distinction.
There are many bases and criteria on which to choose your property in Turkey, which are as follows:
– To be well-known and experienced in the market.
– You have to communicate with previous clients who have dealt with them.
– See the quality of the services you provide.
– Contact them on the phone or meet with them in person to make sure of their response.
Important information when owning real estate in Turkey:
The field of real estate investment in Turkey is available to everyone, as the Turkish government issued a decision in 2012 that abolished the principle of reciprocity, but this does not include five nationalities (Syrian – Armenian – Cuban – North Korea – Greek Cyprus).
Despite all the facilities provided by the Turkish government to foreigners wishing to own property in Turkey, there are some restrictions that must be adhered to, as follows:
– A foreigner cannot own more than thirty hectares in different parts of Turkey.
– Foreigners cannot own more than 10% of the area of one region.
– They cannot own property in security or military areas.
– But if you are wondering about the number of real estate available for foreigners to buy, there is no specific number, but the important thing is that its area does not exceed 30 hectares.
The most important Turkish cities for real estate investment:
After all the information that we have provided you about real estate investment in Turkey, we must point out that Istanbul is the first destination for investment in Turkey. Despite the distinction of all cities, Istanbul always records the highest percentage of its real estate sales for several reasons, which we review together right now:
– The most densely populated city, its population exceeded 16 million.
– It hosts millions of tourists from all over the world every year.
– Expatriates – job seekers – students and others come to it.
– Owns a lot of high-end and modern real estate projects.
– Provides installment offers in case you do not want to pay the value of the property in one go.
– Real estate prices in it are low compared to prices in similar cities in other countries.
The most important areas of Istanbul for real estate investment:
You certainly know that Istanbul spans two continents at the same time, which makes the choice difficult for the buyer who wants to search for apartments and real estate for sale in them, so we have chosen for you the best suitable areas for investment through the following paragraphs:
Real estate investment in Beylikduzu:
– It is one of the most important areas of Istanbul and is located on the European side.
– Overlooking the Sea of Marmara and the Bay of Buyukcekmece.
– Recently, many modern and high-end projects (residential complexes) have been built.
– Real estate prices in it are reasonable and cheap compared to other regions.
– Many experts consider it a good start for investment.
– Prices are expected to rise in the coming period due to increased demand.
Real estate investment in Sariyer:
– It is considered one of the most luxurious and modern areas in Istanbul.
– Ranked among the three most expensive districts in Istanbul.
– It is called the rich and famous.
– Real estate prices are constantly rising.
Investing in Basaksehir:
– It is also located on the European side of the city.
– Close to the most important strategic projects such as the new airport and the new water canal.
– It was called the region of the rich Arabs due to the high percentage of their presence there.
– The prices of real estate and apartments in them have increased by a large percentage during the last period.
– It includes the third largest hospital on the European continent (Basaksehir).
Do not forget that the Asian side also contains many unique opportunities that you can take an idea of, and the most important areas on this side are (Uskudar – Beykoz – Umraniye – Tuzla – Kartal – Maltepe) and others.
Important details and aspects that we mentioned in this article about real estate investment in Turkey, and now you can decide whether to take a step in this field or not, but in any case do not hesitate to ask for help from our consultants to provide you with the advice you need and to inform you of the latest developments And the details related to the Turkish real estate sector.
We at Hana Real Estate provide our clients with comprehensive services that they need when buying real estate in Turkey, as we realize how difficult it is to search for the right property in light of their little knowledge regarding the dimensions of this market and the steps they must follow.
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