Natalie Aside from holiday homeowners, property investors always ask us if it is worth buying a house in Turkey. Eager to make a worthy addition to their real estate portfolio, they are sometimes hesitant to enter a real estate market that, overall global buyers still misunderstand. While France, Spain and Portugal still command international attention, Turkey’s reputation is misunderstood by people who don’t know the Turkish market. Yet, its viability as a good investment destination already speaks for itself.
Annually, foreigners buy roughly 50,000 apartments and villas. Turkish Experts also say this figure will climb as Turkey slowly unravels and gets rid of preconceptions that investors sometimes have. Generally, if foreign buyers want to make a quick profit by flipping houses, then no, don’t buy a home in Turkey. Local Turkish agents dominate the flipping house market, and you need existing contacts and networks to find those properties and make money. But if you keep property mid to long-term, or want a buy-to-let income, then yes, Turkey is worth looking at for property investment. Let’s look at why Turkey could be a worthy addition to your property portfolio.
Why it is Worth Buying a House in Turkey
1: Global Property Price Advantage
Over the last three years, property owners in Turkey have seen massive increases in their property values. Turkish coastal regions received a considerable boost when COVID started because there was a surge in demand from buyers wishing to get out of big cities. In addition, currency issues forced construction materials prices to rise, therefore increasing prices of real estate in Turkey. However, when comparing prices to other countries, like the UK, France, Spain and Portugal, Turkey easily wins for prices per square meter.
2: Citizenship by Real Estate Investment
Investing in property to gain citizenship rights is nothing special. Many countries operate this scheme, often called golden visas. However, Turkey’s real estate investment scheme stands out for numerous reasons. Firstly, the minimum entry level is just $400,000. Secondly, the Turkish citizenship scheme applies to the applicant’s spouse and dependents, and any future-born child automatically receives citizenship. Finally, with an easy-to-apply application system, and quick processing time, Turkey’s real estate by investment scheme stands out as one of the world’s best.
3: Low Purchasing Costs and Buying Process
One daunting aspect about buying property, regardless of location, is the paperwork, legalities, and legal hurdles that keep us on our toes. However, for foreign buyers, Turkey delivers an easy buying process that buyers can purchase and complete in as little as a week if all finances and paperwork are in place. Yes, that is right. You can get your Turkish title deeds and move into your new home in such a quick time. Additionally, the buying costs rate between 8 to 10% of the purchase price, making Turkey an affordable place to buy a house.
4: Capital Gains and Inheritance Tax
So, for example, foreign buyers who purchase a ski chalet in the French alps must keep the property for 15 years to avoid capital gains. On the other hand, in Turkey, house sellers who have owned the Turkish property for five years don’t pay. In addition, there are five brackets for inheritance property tax, ranging from 1% to 30%. The top tier is for the most luxurious properties selling for millions of pounds. Still, Turkey’s inheritance law, compared to many EU countries, stands out as advantageous.
5: Off-Plan Property in Istanbul with Long-Term Payment Plans
If your prime reason for buying property in Turkey is an investment, head to Istanbul. The Turkish government has backed many private real estate developers in Istanbul who build large lifestyle complexes with onsite amnesties. These residence complexes will rejuvenate the housing market and eliminate old-style houses in Istanbul that do not adhere to new building regulations. As well as receiving discounted off-plan prices, some developers offer long-term payment plans ranging from 1 to five years. The bonus is that they sell with 0% interest; hence for investors, this represents considerable savings.
6: Government Infrastructure Investment
Roughly twenty years ago, the Turkish government published their manifesto, which included the twenty-year vision plan. This plan intended to revolutionize all aspects of society, including education, healthcare, business, and transport. Since then Turkey has changed. The airports are now ultramodern, and many win global awards. Highways and bridges cut travelling time by half, and sea and train ports operate with maximum efficiency. However, it does not stop there because many local councils invested heavily into keeping their towns clean and providing aesthetic looks with greenways, plants, and flowers. These vision plans are not one-off but are now implemented yearly hence the continued investment into infrastructure and everyday living.
7: Residency and Healthcare
Some foreign people buy property in Turkey to live here all year round. In which case, the residency and healthcare programs stand out. Anyone can stay in Turkey for up to 90 days on a tourist visa and apply for residency. This is quick and easy to do. You only need to prove the financial means to support yourself and have healthcare coverage if you are under 65. Many expats in Turkey sign up for the SGK system or buy private insurance. Note – To become a resident, you do not need to buy real estate in Turkey.
8: Low Maintenance and Cost of Living
Although globally, prices are rising, Turkey still delivers excellent value for money for upkeep and maintenance of your property as well as daily costs. Many expats in Turkey say they would not be able to live on their currency pensions in their home country with the standard they enjoy here. Part of the affordability is due to the exchange rate of the Turkish lira, and many expats also deposit funds into a high-interest savings account. But overall, for household bills like council tax, electricity, gas and water, Turkey delivers with affordable prices.
9: Strong Tourism Market for Rental Investors
To invest in Turkish real estate to make income from holiday rentals, the Aegean and Mediterranean coasts operate with ideal tourism markets. Careful research is essential to buying property in a market with potential and low competition. Also, consider marketing skills and key management if you do not plan to reside in Turkey. As with any country, there are income fees to pay over a certain level, but for rental investors who excel in their business and want to enter another market, Turkey has potential.
10: Daily Lifestyles
Of course, daily lifestyles vary depending on where you buy. Invest in Istanbul, and you are looking at Turkey’s biggest city, full of the hustle and bustle. On the Aegean and Mediterranean, life is more slow-paced and more multicultural thanks to the languages spoken and various nationalities living there all year round. Regardless of where you buy property, expect a beautiful weather climate, good food, and a culture that welcomes foreigners with open arms.
11: The Property Portfolio
When looking at budget and property types, buyers have huge choices. Regional real estate markets across Turkey feature resale, off-plan, and key-ready homes for every budget, from the most affordable to large, luxury, millionaire mansions. Browse our portfolio of apartments and villas in many areas of Turkey. Each listing contains everything to know, including price, location, home features and contact details to find out about that Turkish property via email or arrange viewings.
Also About Turkey
Where to Buy Property in Turkey: Turkey is an incredibly large country covering 81 provinces and eight geographical regions from the east to the west. Buyers eager to know the best destinations to buy property in Turkey may be overwhelmed at the vast number of destinations open to them, from the leading Turkish cities to small villages. This article discusses the most popular areas for foreign buyers and why they stand out.
Guide to Buy a House in Turkey: The property buying procedure for foreigners is not long and drawn out like in other countries. Homebuyers do not form a company nor endure a drawn-out land register application, and unlike places like Spain, the paperwork is relatively straightforward. The ease of buying attracts many foreigners to the country. This article discusses information home buyers need and the Turkish property buying process.
About Us: We are Spot Blue international property experts. We hope we have answered your question about whether it is worth buying a property in Turkey. Call us today if you have further questions or want to chat with an agent. Additionally, we took all our teams’ knowledge and years of Turkish experience to form our blog, which will interest anyone buying property in Turkey.
