What is included in the real estate market in Turkey
The real estate market in Turkey is one of the strongest real estate markets in the world, characterized by its great diversity and richness in the components of successful real estate investment in addition to the great economic boom that Turkey is witnessing and is directly linked to the activity of the real estate market.
The role of the Turkish government on the Turkish real estate market:
The Turkish government contributed significantly to the activation of the buying and selling movement in real estate, and it also contributed to attracting foreign investors to invest within Turkey because of the many benefits that the Turkish economy achieves as a result of foreign investment in real estate.
The Government has issued numerous resolutions and provided many facilities, opening up investment to new and growing numbers of foreigners.
Facilities of the Turkish Government for Real Estate Investment:
We mention among the most important decisions issued by the Turkish government encouraging real estate investment in Turkey, and the most important amendments to the laws related to real estate:
Cancellation of the reciprocity law:
The Turkish government opened the investment doors to new nationalities, which were previously prevented from owning property in Turkey, after the repeal of the reciprocity law, which prevents citizens of countries whose countries do not allow Turkish citizens to own property in their real estate, from owning property in Turkey.
Turkey experienced a significant increase in the number of real estate investors after this decision was cancelled.
Real Estate Residence Law:
The foreign investor is granted real estate residence permit after purchasing a property in Turkey, which is characterized by many advantages, including:
- Allow the foreign investor to reside legally within the Turkish territory.
- Length of stay is one or two years and is renewable, easy to obtain and easy to renew.
- Real estate residence permit is granted to the wife and children of the investor under the age of 18 as his companions.
- It allows for comfortable movement within the Turkish provinces.
- It allows entry and exit to and from Turkey without the need for a visa throughout the period of residence, and without cancelling the real estate residence permit.
- The foreign real estate investor residing in Turkey has the right to benefit from the educational services available to Turkish citizens
- He also enjoys the right to treatment in Turkish hospitals, and to benefit from the discounts for Turkish citizens for some treatment cases.
- The resident is also entitled to a real estate residence permit in Turkey to benefit from his right to work in a private work or invest in the field he wants
- After 8years of real estate residence permit, the resident can apply for Turkish citizenship.
The Turkish government also granted the investor the right to apply for Turkish citizenship after purchasing a real estate or a group of real estate with a total value of 400 thousand dollars.
In so doing, it had amended the old law and reduced the value of the property needed for naturalization in Turkey from 1 million dollars to 400,000 dollars.
Foreign investors found that step an invitation by the Turkish government to go towards real estate in Turkey, and to enjoy all the benefits granted by Turkish citizenship to its bearer.
These advantages include:
- The Turkish Government grants the citizen the right to enjoy the full rights available to the Turkish citizen.
- Turkish citizenship is granted the right to participate in and stand for election.
- It also allows its bearer the right to own, sell and buy in Turkey in the case of any Turkish citizen.
- In addition to the right to benefit from free educational services and health services available to Turkish citizens.
- The holder of Turkish citizenship is granted access to special jobs in the Turkish government reserved for Turkish citizens only.
- Benefiting from the pensionand insurance plans allocated to Turkish citizens.
- The Turkish citizenship granted as a result of the purchase of real estate in Turkey is also considered a permanent and integral citizenship.
Obtaining the Turkish passport:
The Turkish passport is considered one of the most important passports in the world, and the foreign investor who buys a property in Turkey, and achieves the conditions of
Applying for Turkish citizenship should apply for a Turkish passport. This passport is considered one of the strong motives that prompted the real estate investor to own property in Turkish real estate, given the many advantages enjoyed by the holder.
- The Turkish passport provides access to 64 countries without a visa.
- The holder of a Turkish passport is entitled to enter 26 Schengen areas.
- The Turkish passport holder can benefit from scholarships and educational discounts allocated to Turks.
- The duration of the Turkish passport is ten years, and it can be extended for life.
- Ease of obtaining the Turkish passport and its easy renewal.
- In addition to the significant reductions on the value of real estate taxes imposed on foreign real estate investors
- they have equated the foreign real estate buyer with his Turkish counterpart in terms of tax, and this in turn has been greatly welcomed by foreign investors. After the amendment to the tax law, the total value of taxes decreased from 18% to 7% or 8% according to the value of the property.
- The Turkish government gave the foreign investor the freedom to own the property he wanted to own and did not put it before specific options.
The total facilities provided by the Turkish government to foreign investors constituted a strong push for real estate investment in Turkey
It also contributed to the increase in demand for real estate in Turkey and thus stimulated the movement of the Turkish real estate market.
Factors affecting the importance of real estate in Turkey:
There are many factors that control the real estate market in Turkey, as they affect the purchasing value of real estate of all kinds:
the supply and demand
The importance of real estate that balances supply and demand by real estate investors is high.
One of the most important factors controlling the value due to the property, the location of the property, directly related to the surrounding view and the services available in its vicinity, which contribute to increasing its importance and increasing its price.
The total area of the property offered for sale according to its type, residential or commercial, controls the price of the property.
The economic factor is related to the general economy in the country of the property, where Turkey has one of the strongest global economies and is witnessing the period of the Corona pandemic, that the Turkish economy is the least affected among the global economies and the Turkish real estate market has proven its high ability by maintaining its stability and prestige and as a result, foreign real estate investors have accepted the direction of Turkish real estate to save their money.
Natural factors :
Turkey is characterized by its distinctive climate and varied terrain between mountainous and touristy that contributed to attracting tourists from different countries of the world.
Laws of the Turkish State:
The laws in a country largely control the movement of the real estate market in that country, and as we mentioned earlier, Turkey is alone in all the laws and facilities that encouraged real estate investment in it.
Turkey also has the advantage of facilitating the necessary procedures for sale, purchase and ownership operations and various other procedures related to real estate.
Desired profits from real estate investment:
Real estate in Turkey is characterized by high profits from real estate investment
This contributes to their high prices.
The social life
The life of social intimacy encouraged foreigners to reside and settle in Turkey
The Turkish people are known to be friendly and kind people and therefore the foreigner living in Turkey does not suffer a life of isolation far from his country.
Together, these factors contribute to increasing the importance of Turkish real estate, increasing its investment value and thus increasing its prices.
Investment options available in the Turkish real estate market:
The Turkish real estate market is characterized by its wide diversity, and it is rich in investment options. Each type of real estate has many other types, and each type is characterized by many advantages that are unique to other options :
Investment in residential apartments:
The residential apartment is considered one of the successful and guaranteed investment options in Turkey, and those who own an apartment near city centers and vital centers can ensure ease in renting it, and a permanent monthly return without interruption.
Also, the prices of apartments in these areas are constantly rising as a result of the large demand on them. Therefore, the investor can use the apartment after the increase in its price and achieve double profits.
Investment through student housing:
Turkey is characterized by the modernity and development of education, which made it the destination of students from various countries of the world due to the orientation of students towards comfortable student apartments that provide them with a stable life throughout their time in Turkey.
Investment in student apartments has become one of the most successful and guaranteed types of real estate investments in Turkey.
Investment in apartments and tourist villas:
This type of real estate is considered more expensive than others, due to the specifications and services available in apartments and tourist villas, but they achieve more profits than various other properties because of the tourists’ demand for them, and they also witness peak seasons in which they achieve double profits.
The most important points related to investment in tourist properties are taking into account the choice of the best location and the appropriate time to buy the property.
At the peak time, the prices of tourist properties are experiencing a significant rise in compare with other times of the year.
Investment in hotel apartments:
Hotel apartments are the preferred apartments for tourists and businessmen
It is characterized by high wages and is easy to rent as a result of the large turnout of investors to work in Turkey.
Investment in office apartments:
Companies and banks are heading to open branches in Turkey as a result of the economic boom in Turkey, and they are heading to the office apartments that constitute the best option. Companies are also interested in maintaining their location for as long as possible, so investing in the office apartment in Turkey will ensure increased and permanent profits.
Properties under construction:
Turkey has witnessed a significant spread of construction movement in various regions
To keep pace with the rapid economic development and this indicates the activity of the real estate market in Turkey and the increasing demand for real estate in Turkey.
The foreign investor can obtain many offers of properties under construction by construction companies and investment in them is considered profitable, due to the high prices after the completion of the construction process.
Commercial real estate :
Commercial real estate in Turkey includes shops and huge commercial buildings. Turkey is famous for the boom in its commercial market as a result of the boom of tourists and the economic boom.
Thus, investing in shops guarantees a lot of profits for those who want to buy the property and lease it permanently
Or whoever wants to buy the property and invest in it personally.
Large commercial buildings such as hotels are of great and continuous importance as a result of the constant demand of tourists as well as hospitals whose investment importance cannot be diminished.
Investment in residential and agricultural lands:
Some investors go towards residential land to establish their own projects, such as residential buildings, residential complexes, schools, hotels, hospitals and other projects, as for agricultural land in Turkey
Agriculture in Turkey plays an important role in the Turkish economy, and agricultural investment in Turkey has risen to the global level as a result of achieving self-sufficiency and exporting to various other countries.
Investment in agricultural land includes investment in various agricultural crops, investment in livestock.
Let us not forget Turkey’s superiority in investment in bees and fish resources.
Types of real estate taxes in Turkey:
Title deed real estate tax:
The title deed tax is paid upon registration of the property in the Land Registry Department in order to obtain the title deed
Its value is equivalent to 4% of the value of the property, half of which is paid by the previous owner, and the other half by the new owner.
Municipal Tax Duties:
In Turkey, the municipalities impose a tax on the real estate within the scope of their services and the beneficiary of those services and pay the municipal tax annually, amounting to 0.03% of the value of the property.
Earthquake and natural disaster insurance fees:
The value of the said tax is related to the location of the property and its area, so its value varies from one area to another in Turkey and it is also calculated per square meter of the property, and it is paid annually by the owners of apartments to protect their apartments from natural disasters and earthquakes.
The inheritance tax in Turkey is low compared to other countries
Their value is usually between 1_10% of the value of the property.
Important tips related to the real estate market in Turkey:
- The real estate market is linked to and influenced by other local markets
Prices of real estate rise significantly as they approach commercial markets and shopping malls.
- Large cities with a larger population than small cities, which are considered the centers of activity in the country and characterized by high property prices compared to less active areas and a smaller population.
- Properties close to tourist attractions and archaeological monuments are considered the highest price in Turkey.
- The services surrounding the property play an important role in controlling its price, and it also guarantees more rental returns, if available.
- Real estate close to important projects in Turkey is witnessing a continuous rise in their prices, due to the high demand for them and the importance of projects for investments .
High real estate prices in Turkey:
Real estate prices in Turkey are constantly rising as a result of many factors:
- The continuously developing infrastructure in Turkey, the Turkish government is interested in providing integrated services in its various regions, and it seeks the continuous development of those services.
- The high demand for Turkish real estate, the Turkish real estate has witnessed in recent periods an increasing demand for it, which led to an increase in its prices
- The prosperity of the economy in Turkey, real estate prices are directly related to the economy, so it rises with prosperity and progress.
- Great competition between construction companies to achieve the best specifications in construction and services.
Reasons for the success of real estate investment in Turkey:
We can successfully return the real estate investment in the Turkish real estate market to a set of factors:
- Life returned to normal in Turkey, after the Corona pandemic
This indicates the solidity of the economy and the stability of the real estate market in Turkey.
- Real estate investment in Turkey is associated with its economy that achieves amazing results and leaps globally.
- The important geographical location that Turkey enjoys among the continents, which ensures the success of investment of all kinds
- Large projects implemented by Turkey that contribute to supporting real estate investment in Turkey
- Real estate investment in Turkey ensures results, safe and achieves continuous profits as a result of the continuing demand for Turkish real estate
- The permanent rise in real estate prices in Turkey, which ensures a doubling of capital in the near future.
- Turkey’s global real estate market rankings have ranked Turkey as an important group in the growth of the real estate market.
The real estate market in Turkey is characterized by the wide options available to the real estate investor, as well as its permanent movement and increasing growth.
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