Natalie The benefits of buying property in Turkey vastly outweigh the risks and easily match European countries. Whether you are a property investor, or you want to buy a holiday home overseas or are planning to retire abroad, Turkey offers many rewards and reasons to buy. To date, foreigners take up roughly 3% of the market for real estate investments, with the average year seeing 35,000 to 40,000 apartments and villas sold.
Nationalities vary across the board, with the Russians being the most popular, as well as the Brits, Americans, Europeans, and Middle Eastern nationalities. Generally, foreigners avoid the east and central parts of Turkey, with foreign citizens instead heading to Aegean and Mediterranean coastal resorts and Istanbul.
The good reasons to buy include value for money and a fast-buying process, but what are the other benefits? This comprehensive guide looks at the advantages of owning a home in Turkey compared to other destinations like Spain, France, and Portugal. We also give helpful tips and advice on how to start your search.
Benefits of Buying Property in Turkey for Foreigners
1: Cultural Immersion
For holiday homeowners and retirees, the cultural immersion offers excitement at the same time. Some foreign property owners use their property as a base to explore the rest of Turkey and learn more about other cultures. Whether you immerse yourself in travel, history, traditions, or food, opening your eyes to the bigger picture and getting out of your comfort zone is good for mental and physiological health and general well-being.
2: Peace of Mind with Good Liquidity
Liquidity refers to how quickly a home can sell without affecting its market value. In Turkey, most locations have good liquidity thanks to international investors and Turks entering the market. Couple this with a fast-selling process that takes as little as seven days, and selling a house is easy for homeowners needing future-ready cash.
3: Better Health and Quality of Life
Some retirees tell us that they feel healthier in Turkey. Those who live in beachside resorts enjoy cleaner air. Because of Turkey’s ideal climate, from spring through autumn, social life focuses on outdoor activities, whether simply al fresco dining or exploring ancient ruins. Turks prefer fresh and homegrown ingredients for eating, and healthcare has also dramatically improved over the last ten years. This outdoor lifestyle, from culinary scenes to cultural heritage, green parks, and eco-friendly architecture trends, will take 20 years off you.
4: Longer Residence Permits and Stability
Anyone planning to live in Turkey needs a residence permit. People who invest in the Turkish economy by buying property worth at least $200,000 receive more extended residence permits than foreigners who rent. Additionally, Turkey’s rental market is haphazard. High prices in some destinations and tight rental laws that heavily protect landlords worry renters. For retirees, owning property gives them more stability than renting.
5: More Money thanks to Low Running and Living Costs
Most British retirees say their pension goes further in Turkey, especially considering the cost of living. They say they would not enjoy the same lifestyle if they returned to Britain. This is because of reasonable exchange rates, real estate prices, and low running and lifestyle costs. For example, there is no TV licence and minimal council tax to pay. Even UK smokers win, with the average price of cigarettes being £1.50 compared to £12,00.
6: Ease of Travel Because of Turkey’s Geographical Location
Over the last 20 years, Turkey has improved air travel by refurbishing and upgrading airports. In Istanbul, the new airport, Turkey’s most prominent, connects to more than 350 destinations worldwide. At the same time, other destinations like Antalya, Dalaman, and Bodrum are home to Turkey’s top three tourist airports. Additionally, we don’t want to be cliché, but thanks to Turkey’s geographical location between East and West, nationalities from around the world get here quickly all year round.
7: An Easy Way to Build Generational Wealth
In some countries like the USA and England, the younger generations, Gen Z and Millennials, don’t earn enough to enter the housing market because of house prices. Looking to their parents and inheritance to build their net worth, affordable prices enable parents to build generation wealth for their children.
Of course, Turkey isn’t ideal for flipping houses because of the poor building standards of homes older than 20 years. Still, for long-term ownership of residential properties, your children will enjoy the fruits of your property investment. Also, keep your property for at least five years and avoid capital gains tax.
8: Less Homebuying Stress
In Spain, Portugal, and France, the home-buying process and additional costs are much more complicated than in Turkey. Homebuyers in Turkey enjoy less stress. If paperwork and finances are in place, you become a proud owner in seven days. Of course, choose a good estate agent and use a lawyer, but expect less red tape and bureaucracy.
9: Architectural Excellence to Create Your Dream Home
Gone are the days of shady architectural quality in Turkey. These days, whether you start from nothing and build your own home or remodel an existing one, expect the best in architectural design alongside affordability. Turkey has strict building regulations for construction purposes, and buyers are assured of quality.
10: Various Property Types
Putting aside affordable property prices, international buyers don’t need to change their idea of their dream home because the Turkish property market brims with investment opportunities. From luxury apartments with sea views close to beautiful beaches to modern apartments in city centres, you will find what you want.
From investment property in a bustling town centre to permanent residence in a cute Turkish village house. From luxury residences in Yalikavak and Kalkan to budget homes in outskirt districts in Altinkum and Calis Beach, don’t compromise on your choice.
But What are the Disadvantages for Foreign Buyers?
Key Management for Holiday Homes: Someone must check the property periodically, after bad weather, and in an emergency like a burst water pipe. You might even like them to clean the property and put in welcome packs before you arrive. Look for a local property management company if you don’t have friends or neighbours.
Residency Laws Change: If you plan to retire to Turkey, remember that residency laws can change anytime. Stay up to date by following local publications and joining expat groups.
Repairs and Maintenance: Your Turkish home needs regular maintenance like any property. Repairs are unavoidable but a significant concern for holiday homeowners who don’t want to spend their holidays repairing and upkeeping their homes.
Financing: Some owners release equity or sell property in their home country. Others purchase with inheritance. Unfortunately, if you have money, seek funding, but be aware of high interest rates for foreigners tasking out Turkish mortgages.
Rental Income Laws: The housing sector has seen a shift thanks to changes in rental properties. This isn’t specific to Turkey but also happens in Spain and France. There are stricter rules for gaining a rental income from renting out your home. Even for holiday rentals, owners need a license and permission from their neighbours. This affects rental yields.
Turkish Currency: Since currencies are closely linked to property values, foreign buyers who plan to sell in later years might not see a more significant capital appreciation than a Turkish citizen.
Will I get Turkish Citizenship if I buy Property?
One benefit for real estate investors interested in golden visas is the Turkish citizenship program. Known as the Citizenship by Investment Program, it requires a minimum investment of $400,000 or more and a pledge to keep it for at least three years to apply for Turkish citizenship. Applicants can also hold dual citizenship.
If this is your reason for buying, make this known to your real estate agent. The reason must be on the title deeds and involve a separate application to become a Turkish citizen. Home buyers taking advantage of the scheme usually head to major cities and popular destinations like Istanbul and Antalya.
Tips for Buying Turkish Property
- Use a good estate agent who speaks your language and promptly answers emails and telephone calls. Are they licensed with good testimonials, or do they provide precise details about their commission fee? A good agent also deals with the tax office and determines your annual property tax.
- Be prepared to move fast once you find your ideal home. The property buying process happens quickly, and the ease and excellent housing prices take prospective buyers by surprise.
- Know your reason for buying; this will help your estate agent during the property transaction. Investors are more interested in trends and rental yields, but holiday homeowners prefer to be near the beach, bars, and restaurants in coastal resorts rather than Turkish cities.
- Know your budget for the property purchase price and factor in roughly 6% for closing costs and property taxes. Foreign nationals need a Turkish bank account to complete currency transactions and property prices in Turkish lira. Still, we help all our customers open one.
- Even though Turkish law doesn’t require one to seek legal advice before the property transfer to conduct due diligence and understand the terms of purchase, registered lawyers must be familiar with Turkish property law to give legal advice to foreign property buyers.
Need to Know – The Turkish Condominium Law
Foreign nationals who buy an apartment or villa in a complex rather than a private villa should know about the Condominium Law, called “Kat Mülkiyeti Kanunu.” This legislation governs the management and legal issues of complex properties, and all homeowners must adhere to it or face fines and court action.
Historical Context: As Turkey experienced significant economic growth and urban development, the demand for multi-unit buildings in central locations soared. This law ensures fair management, protects individual property rights within shared buildings, and maintains common areas.
Establishment of Condominium Ownership: Complex ownership revolves around new buildings or existing buildings divided into independently owned apartments. All owners jointly own staircases, elevators, and gardens.
Registration: The complex registers themselves at the land registry office to establish legal ownership by providing a deed plan detailing the individual apartments and communal areas.
Responsibilities of Owners: House buyers have exclusive unit rights. They are responsible for their units but contribute to the upkeep of communal areas. The law mandates regular payments, called “aidet,” which cover maintenance, repairs, and other communal expenses.
Management: The law stipulates the formation of a management board, typically elected by the unit owners, to oversee the administration. This board implements decisions, manages budgets, and complies with the law. Regular AGM meetings decide on essential matters like budgets, maintenance projects, and rule changes.
Where do Foreigners Buy in Turkey?
Turkey’s north coast, known as the Black Sea, attracts Middle Eastern buyers in the famous city of Trabzon thanks to similar cultures and traditions. Bursa is another Black Sea hotspot. Other international property buyers look at Istanbul, Turkey’s largest city, and coastal resorts like Antalya, Fethiye, and Bodrum. Investors look at the capital city of Ankara. Indeed, one of the biggest draws is the hundreds of locations to choose from.
City Vibes of Istanbul: This is the number one destination for property investment and commercial properties, even though the city has higher housing costs per square meter. Rather than the expensive districts, investors look at the prices of properties in the outskirts of European districts near the international airport. Istanbul is the top financial centre and the top-performing domestic market for property acquisition, easily matching European countries.
Sandy Beaches of Antalya: This expat destination is the top option for holiday homes or permanent living. Home to blue-flag beaches and places of natural beauty, the region promotes coastal lifestyles despite being one of Turkey’s busiest cities. Average prices depend on the area and type of property, but there are many options.
Reasonable Prices in Fethiye: Home sales in this attractive destination have soared because, despite the growing popularity, Fethiye offers reasonable purchase prices per square meter, especially for budget apartments. Areas for competitive prices include Calis Beach, Hisaronu and Ovacik.
The Turkish Market in Bodrum: Average costs are higher in this coastal city, but these are exclusive properties in the city centre and Yalikavak. Bodrum easily matches European cities for its daily amenities, but the average house prices are slightly higher with modern Turkish trends.
Use Our Property Purchase Services in Turkey
If you have questions about foreign property investment, Turkey’s citizenship by investment program, or buying a home, call an agent of our experienced team. We are Spot Blue International, and our services help many people buy homes in foreign countries.
From initial consultation and finding property for sale to professional advice to finalising the deal, we handle every aspect of buying a profitable investment. We listen to your preferences and offer personalised real estate options that match your criteria.
Our partnership offices in Turkey also have English-speaking staff to ask questions and receive help with making a return on investment. Whether you want a luxury villa, to ask about mortgage rates or possible rental returns on a home, we can help.
Browse our portfolio of apartments and villas for sale in destinations including Istanbul, Antalya, Bodrum and Fethiye. See the photographs, check the map location, read the home description features, and to learn more via email or telephone or arrange viewings, use the contact details or fill in the inquiry form. We will respond within 48 hours and highlight the benefits of buying property in Turkey.
