All About Buying A Property in Turkey

The Turkish real estate market has experienced significant growth in recent years, with a substantial increase in foreign investments. This trend, marked by consistent growth, has been spurred on by the Turkish government's initiatives. Foreigners can now obtain a residence permit with an investment as low as $400,000, further boosting property sales. Real estate experts highlight that both luxury and budget-friendly properties in Turkey present excellent investment opportunities, making it an attractive choice for investors seeking diverse and lucrative options.

Turkey offers a welcoming investment climate with vast economic potential, coupled with the construction of high-quality properties and lower rates and taxes compared to other sought-after European countries. However, it's crucial to determine your purpose for buying property in Turkey. Clearly defining your goals, whether it's for future investment returns, residency, or citizenship, is essential for making informed decisions in this promising real estate market.

Why buy property in Turkey?

• Turkey offers a unique blend of Western quality of life and Asian economic potential, making it an attractive investment destination. The evolving housing architecture and robust legal systems have further amplified the demand for Turkish properties. Let's explore the compelling reasons why investing in real estate in Turkey can be a highly profitable decision.

• Relatively affordable housing: In comparison to numerous other nations, housing in Turkey is notably more affordable. The compelling factor drawing foreigners is the attractive and comparatively lower home prices, making it an appealing choice for international buyers looking for value and investment opportunities.

• Best for the long term: Turkish real estate stands out as a promising option for future investment due to its potential for substantial return on investment (ROI). With minimal annual maintenance requirements, a well-maintained property has the capacity to yield significant returns in the future. This makes investing in Turkish real estate an appealing prospect for those looking for profitable, low-maintenance investments.

• Housing options: Investors in Turkey have diverse choices, from luxury to budget properties, newly built or off-plan, apartments or villas, buy or resale, sea view or basic accommodations, providing options for various preferences and budgets.

• Cost of living: Compared to North America or Europe, living in Turkey is significantly more affordable. Everyday essentials like fruits, vegetables, and groceries come at a budget-friendly price, making it an attractive choice for those seeking cost-effective living options.

• Buying process: The Turkish government has streamlined the buying process, encouraging investment in the real estate market.

• Turkish citizenship: Investing in Turkish property offers the opportunity for Turkish nationality. Through the Turkish investment program, foreigners can invest a minimum of $400,000 and obtain a Turkish passport and citizenship within just 60 days, making Turkish real estate an exceptionally attractive investment choice.

• Student opportunities: Children have the opportunity to study in Turkish universities, both private and public, offering a unique blend of an Western environment and the experience of European civilization.
  
  

Real estate market growth potential in Turkey

Turkey lures foreigners with its excellent transportation, vibrant tourism, diverse entertainment, and rich culture. Istanbul, in particular, shines as a rising star, offering abundant real estate opportunities with high value-added and lucrative properties.

The Turkish residential real estate market is projected to achieve a Compound Annual Growth Rate (CAGR) of around 8% from 2022 to 2027. Despite the challenges of the pandemic in 2020, Turkey experienced its highest number of home sales ever recorded. With rising demand and limited supply, Turkey's residential real estate market is outpacing growth in comparison to other European countries.

Turkish real estate is gaining immense popularity among investors. In 2022, residential property sales surged by 6.7%, and there was a substantial 26.9% increase in real estate purchases made by foreigners, showcasing the growing appeal of Turkey's property market to both domestic and international investors.

Demand for rental properties

The rental market in Turkey is booming, matching the strength of the commercial and residential sectors. With an influx of visitors and keen foreign investors, the market is thriving. Turkey has transformed from merely a tourist destination into a cherished holiday home location, capturing the hearts of travelers and property enthusiasts alike.

Buying a property in Turkey with the aim of selling and making a profit

Purchasing property in Turkey for profit is a strategic choice. The expanding growth prospects in real estate have captivated investors, making the Turkish housing market increasingly attractive. Investors can enjoy long-term passive income or immediate gains by reselling properties, aligning with the trend where up to 80% of foreign buyers in Turkey view residential properties as a source of future financial benefits, as noted by Forbes.

Is reselling Turkish real estate profitable?

In 2021, Turkey secured its position among the top 20 most appealing countries for real estate investment, thanks to its robust economic competitiveness. The Turkish real estate market allures buyers worldwide with its top-notch construction, quality living standards, and affordable prices, making it an enticing choice for international investors seeking high-value opportunities.

How is Turkish housing sold for profit?

• Turkey offers low market entry prices, despite steady growth in both new and secondary properties.

• The consistent demand for housing ensures quick transactions, often within 2-3 weeks, thanks to efficient state regulations in the real estate sector.

• Housing remains a valuable asset even with modest price growth, making it a stable investment choice.

• New off-plan properties in Turkey typically see a resale increase of 15-25% after completion, with potential to reach up to 35% based on location and property features, making them lucrative investment options.

The Guide Real Estate is there to help to make profits by reselling in Turkey. Our decade of expertise and experienced sales staff will help you with finding the right buyer. With our legal professionals, you can be sure of things being done the right way by knowing the dos and don’ts of buying property in Turkey.

Development of new projects in Turkey

The Turkish government has embarked on extensive initiatives to enhance the country's infrastructure. With numerous ongoing and upcoming projects, Turkey is poised to become one of the world's top 10 powerful economies in the near future, showcasing its commitment to robust economic growth and development.

The largest housing project: 800,000 properties

This ambitious project entails constructing 500,000 apartments, offering 250,000 land plots suitable for reconstruction, and creating 50,000 job opportunities across all Turkish states by 2028. The initial phase aims to complete 250,000 properties within two years. Citizens with family incomes below 18,000 TL in Istanbul and 16,000 TL in other states are eligible to apply for purchasing properties through this initiative, making it an inclusive opportunity for affordable housing.

Istanbul's third airport

The third airport, inaugurated on October 29, 2018, stands as a monumental project with an investment value of around $35.6 billion. By 2023, the majority of its components, costing approximately 23.4 billion euros, are set to be completed. This airport is anticipated to generate approximately 225,000 job opportunities across various sectors, offering significant economic prospects for a wide array of individuals.

Domestic electric cars

A nation's automobiles play a crucial role in its economic advancement, showcasing technological prowess and economic value. Turkey's electric car initiative is strategically designed to boost GDP and decrease the nation's reliance on oil, positioning electric vehicles as vital assets. With its favorable geographical location, robust infrastructure, and skilled workforce, Turkey aims to achieve complete self-sufficiency in locally manufactured electric cars by 2023, further solidifying its standing in the global market.

Huge Energy Projects

Turkey's focus on nuclear power plants stands as a cornerstone in its Vision 2023 initiative. These projects not only bolster employment through numerous job opportunities during construction and operation but also signify a significant leap in the country's energy landscape. The Turkish Stream project, facilitating natural gas transportation from Russia to Turkey and Europe, amplifies Turkey's global influence in the energy sector. Moreover, Turkey's strides in energy integration, exemplified by the Energy Bridge connecting East and West with Azerbaijan, mark a remarkable achievement, strengthening the nation's position as a vital energy hub in the region.

Istanbul Canal Project

The Istanbul Canal, spanning 45 kilometers and traversing Avcilar, Kucukcekmece, Basaksehir, and Arnavutkoy, stands as a pivotal mega project. Its purpose lies in easing the congestion of ships and tankers navigating the Bosphorus, offering a new route connecting the Black Sea and the Marmara Sea. This ambitious venture not only promises to alleviate maritime traffic but also adds a captivating allure to the cityscape. Anticipated to yield substantial economic benefits, the canal aims to contribute significantly to the Turkish economy, aiming to generate an economy worth $100 billion.

Space Technology

The Turksat 6A project propels Turkey into the elite group of top 10 communication satellite producers. This landmark achievement, set to launch in 2023, not only showcases Turkey's technological prowess but also opens doors for significant investments, being the first satellite fully crafted with national resources.

The potentials of Turkey

Turkish history

Turkey's rich historical tapestry continues to captivate the world, evident in the staggering numbers of visitors to its museums and archaeological sites, totaling 3 million. Among these, the ancient ruins of Hierapolis Pamukkale in Denizli, drawing 233,000 visitors, emerged as the most sought-after historical site. Interestingly, tourists are favoring archaeological sites over museums, as seen in the 198,000 annual visitors to the Mevlana Museum in Konya and the 128,000 summer visitors to the Phaselis Ruins in Antalya, highlighting the enduring appeal of Turkey's historical treasures.

Olympos ruins in Antalya had 124,500 visitors and Izmir’s Efes ruins were visited by 124,000 tourists.

Turkey tourism

Turkey showcased its tourist allure by welcoming over 75 million foreign visitors, generating a staggering $65 billion from tourism alone. To bolster this sector, the government strategizes diversifying activities, enhancing services, and extending the tourism season. Major hotel chains are capitalizing on this by expanding in Turkey, with Cappadocia alone drawing over 1 million tourists in 2022. The nation's winter tourism, particularly for skiing and snowboarding, is gaining traction. Turkey has set ambitious goals, aiming to attract 50 million tourists by 2023, putting up strong competition against Spain and Greece.

Commercial development

Turkey has emerged as the world's fastest-growing economy, setting ambitious targets to become the 10th largest global economy and achieve $500 billion in exports by 2023. This presents a promising opportunity for the United States to enhance commercial ties with a strategic and flourishing partner. The Turkish market, especially in renewable energy and transportation sectors, offers mature avenues for trade and investment. With a youthful and expanding population, Turkey's energy consumption is on the rise, leading the government to invest around $130 billion by 2023, with a strong focus on renewable energy solutions.

Turkey's renewable energy sector shines brightly, especially in wind and solar energy. The wind energy market ranks second in Central and Eastern Europe, boasting a capacity of around 1,000 megawatts. Additionally, Turkey stands as Europe's second sunniest country after Spain, with substantial solar production capacity. Small-scale solar panels are widely employed for domestic water heating, underlining the nation's vast potential in harnessing solar energy.

Ankara is gearing up for significant investments in transportation and infrastructure. The Ministry of Transportation has outlined plans to allocate $100 billion by 2023 for a range of projects including bridges, railways, and highways. These ambitious initiatives are poised not only to create new business opportunities but also to significantly bolster overall economic growth in the region.

Turkey has always been a desirable destination for foreigners to all a second home. The country is offering endless opportunities for entrepreneurs, professionals, students, and retired individuals to come and invest in its real estate to get a second citizenship and/or future gains.

Interested in buying real estate in Turkey? The Guide Real Estate will guide you through your investment journey! Contact us for more information and support.