Feb 5, 2023

Answers to Your Questions: Real Estate Turkey

Since 2018, Turkey has witnessed increasing interest from investors in the real estate market. Turkey has become one of the main destinations for searching for distinct investment opportunities, which has led to an increasing demand for Turkey real estate, the country that combines historical charm and modern development.

It must be said that there are several factors that contributed to this recovery and the increasing demand for Turkey real estate, such as changes in the economic context and real estate legislation, which made Turkey attractive to real estate investors.

If you are thinking of buying an apartment in Turkey, then welcome to one of the most popular real estate markets in the world. Since 2018, Turkey has welcomed thousands of foreigners who are eager to put their feet on the Turkish housing ladder. Investing in regions such as Istanbul, Antalya, Bodrum, Bursa, Kusadasi and Fethiye, the purchase of real estate by foreigners has been at an all-time high.

As with any real estate investment, buyers are eager to maximize their appreciation of capital, but entering a market that is foreign to you is daunting. So, in this article, we'll summarize the market, answer common questions, highlight areas where foreigners buy, outline the process and provide some hints, and tips to make this real estate investment work for you.

Why should I buy real estate in Turkey?

Reasons to buy real estate Turkey are many, but the driving force is the profitable exchange rate. Compared to what it was three years ago, whether they are buying in US dollars, euros, sterling or other currencies, foreigners who vacation in Turkey or buy a property are getting more Turkish lira for their money than ever before.

The market also made a big leap in 2018 when the Turkish government changed regulations and lowered the minimum entry for citizenship by real estate investment from $1 million to just $250,000. Thousands of people suddenly got the right to live and work in Turkey. It should be noted that this decision was amended in 2022, so that the value of the property that qualifies for obtaining Turkish citizenship is 400 thousand dollars.

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What is buying Turkey real estate?

The first step of buying real estate Turkey is to find an apartment, pay a deposit and agree on a payment schedule. You will also need a tax number and open a bank account. Turkish law does not require the assistance of a lawyer but we recommend you to do so, in order to prepare a contract and carry out some legal checks and documentation to protect the investments.

What are the apartment complex fees?

In real estate Turkey, if the building has less than six apartments, there is no need for a management team. However, talk with neighbors about arrangements for cleaning communal corridors and paying for communal electricity.

If there are more than six apartments, the Turkish condominium law states that the complex must have a management team to handle the maintenance of all common areas. These venues vary but include swimming pools, landscape, gyms, saunas and security staff.

The apartment owner pays a fee for these utilities. If you or your neighbors do not pay this fee, you can be sued. Fees vary and will increase with the annual rise in the cost of living. Remember to factor this cost into the expenses.

How much do Turkey real estate cost?

This varies from one area to another and from one apartment to another. Other factors also affect real estate prices in Turkey. For example, the higher the apartment in a building, the more expensive it is because it is classified as a duplex and has a better view. Ground floor and basement apartments are the least expensive in the building. In addition to many reasons, such as the apartment's proximity to public transportation, highways, or the city center. Apartment prices also vary from one city to another. For example, Istanbul real estate prices differ from Adana real estate prices, and so on.

Can I rent out my house in Turkey?

If you are thinking of renting out your apartment in Turkey, there are two ways to do so.

The first is to hire a management team that handles everything including marketing, reservations, cleaning, welcome packages, and maintenance.
The second is to do it yourself. For both methods, if you are looking for short-term vacation rentals, which generate higher income than long-term renters, you need to abide by the Turkish Identity Declaration Law.

This states that all owners must announce who will reside on their property, when and for how long. You will need to enter this information into the official GIYKIMBIL system. The other important aspect to consider is tax payments, which are a legal obligation.

How can I find Turkey real estate?

Since there are thousands of apartments for sale in Turkey, if you are hesitant, the way to narrow your search is to decide whether to buy off-plan, ready-made or for sale homes. Each option has its advantages and disadvantages.

Off-plan homes are available on the market at discounted rates but you can't see them yourself until finished. If you choose on the plan, ask to see the floor plans that also list the area of each room. A big advantage is that you can make minor tweaks to the decoration and design so that it's more like designing your own home.

If you choose a ready-to-move property, resale apartments offer good opportunities, but likewise, have the home inspected because small bits of damage and repair soon accumulate. If you choose a home to be resale, the current owner will need to make sure all debt including council tax has been paid up to date before the title deeds are approved in the applications.

Where to buy in Turkey?

Turkey ranks 37th among the largest countries in the world, so there are hundreds of destinations to choose from when buying. Current trends of foreigners show that they are moving east as these are landlocked and less western regions. Most foreign home sales occur on the Aegean, Mediterranean and Istanbul coasts. There are options as:

Istanbul: As the most popular destination for foreign home buyers in Turkey, the real estate market in Istanbul is undergoing a transformation due to new developments in European suburbs.

Antalya: As the second most popular destination, the Antalya region includes downtown and smaller coastal resorts such as golf in Belek, its historical side, bustling Alanya, and beachy Kemer.

Bodrum: On the Aegean coast, the Bodrum peninsula dominates the foreign real estate market. Popular places include Glitzy Yalikavak, upscale Turkbuku, Gumbet, and the city center.

What should I be aware of?

Take your time. It is buyers' market.
Think of it as a long-term investment because the market has a lot of properties for sale.
Always seek the assistance of a lawyer and follow their advice.

It is a brave step for a foreigner to buy property in another country. It is considered relatively easy when you have the money to pay what is in line with the price of the property. There are always offices and agencies that you can rely on at all stages of your property purchase, but the amount can be relatively large. This depends on the price of the property and the company itself. In general, you will not regret buying Turkey real estate. You can really live the Turkish dream.

If you would like to know more about buying real estate in Turkey, do not hesitate to contact us via WhatsApp, here. Our company's real estate consultant will respond to you immediately.

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