The main advantage of real estate in the Republic of Turkey, perhaps, is that you do not need to be the owner of a large business or capital to buy an apartment and enjoy life on the Mediterranean coast.
Turkish apartments – profitable investment of financial savings. But if you approach the choice of an object without due seriousness, the investment may not justify itself. Therefore, we do not recommend making rash decisions and finding out in advance all the nuances and features of buying real estate in Turkey. You will find all useful information on this topic in our expert article.
Rising prices on the real estate market in Turkey and forecast for 2023
In recent years, there has been a constant increase in prices for real estate in Turkey. Meanwhile, 2022 turned out to be a record year, according to the Endeksa analytical platform: the maximum increase in the cost of housing in popular regions was 336%. The TOP 10 popular locations in Turkey, where properties are rising in price the fastest, include some of the districts of Istanbul, the provinces of Izmir, Mugla and Antalya. And this is not surprising, since it is here that the important centers of tourism, economy, trade and culture of the state are located.
Experts note that the cost of residential properties is rising faster than the world's leading currencies in relation to the inflation rate of the Turkish lira. Thus, the American dollar grew by 98% in just six months, and the euro – by 76% to the lira. In terms of dollars and euros, prices for apartments in Turkey over the past 6 months have risen by almost 60% and 43%, respectively.
Factors influencing the rise in price of resort housing:
- depreciation of the Turkish lira;
- supply shortage in some popular areas of the country;
- increase in prices for construction materials and labor costs;
- opening of new transport infrastructure facilities (railroad lines, metro lines in Istanbul, etc.).
According to forecasts of financial analysts, Turkish developers and realtors, prices for Turkish real estate, against the backdrop of high interest from foreign buyers, will continue to grow in 2023.
Therefore, if you intend to buy property in Turkey, you should not expect a reduction or freezing of prices in the near future. There are no objective prerequisites for this in the Turkish real estate market.
Residence permit and citizenship for the purchase of real estate
Purchasing real estate in Turkey, thanks to the abolition of the “principle of reciprocity,” is available to almost all foreigners. Citizens of Kazakhstan, Russia, Uzbekistan, Ukraine, Azerbaijan, and Belarus can freely purchase Turkish apartments and fully own them. In addition, investors are guaranteed the right to apply for citizenship and residence permits in the Republic of Turkey. On what terms? Let's take a closer look:
- A residence permit in Turkey when purchasing real estatecan be obtained by foreigners and immediate family members, regardless of the cost of the property. Due to changes in Turkish legislation, a residence permit based on TAPU, the period of which will be taken into account in the future when applying for citizenship, is available only if the cadastral value of the property is at least $200,000 in lire equivalent at the time of its registration (these changes came into effect effective October 16, 2023). If the price tag for the property is below the established minimum threshold, the buyer has the opportunity to obtain a tourist residence permit.
Recommendation from Point Property agency specialists:
As of July 1, 2022, more than 1,100 Turkish areas have been included in the list of “closed” areas. to obtain a residence permit due to the fact that the number of foreigners in them in relation to the total number of residents has reached 20%. The new laws apply to all types of short-term and long-term residence permits, so we recommend that you take this fact into account before choosing an object.
- About 20–40% of foreigners plan to obtain a passport of a citizen of the Republic of Turkey. Turkish citizenship for Russians, Kazakhstanis, Ukrainians and residents of other countries of the former CIS when purchasing real estate – the easiest and fastest way to move for permanent residence to a prosperous and safe country. To do this, the investor needs to purchase one or more real estate properties at a cadastral price of at least $400,000. In just 3-6 months, if the documents are submitted correctly, the owner can count on obtaining investment citizenship.
Primary or secondary real estate?
Another important factor that you should understand before purchasing Turkish real estate: in what market – primary or secondary – choose an object? In new buildings and “resales” Turkey has its pros and cons.
Objects on the primary real estate market in Turkey – this:
- Use of new construction technologies and materials, high energy efficiency of buildings.
- A large selection of options of different sizes and layouts.
- High-quality repairs, including turnkey ones.
- When purchasing in the early stages of construction, the investor can make individual changes to the layout and renovation.
- Excellently developed internal infrastructure of the residential complex.
- Convenient payment terms: interest-free installment payment and loan from the developer.
- The lowest possible prices for off-plan purchases: an apartment at the excavation stage costs 30% cheaper than finished apartments.
There are practically no disadvantages to housing under construction in Turkish resorts. However, it should be remembered that the period between purchase and occupancy can be about a year or more, depending on at what stage the property was purchased.
When purchasing apartments on the secondary market, investors have the opportunity to:
- Quickly move into the purchased property as soon as the TAPU is issued.
- Live in a comfortable area, since most secondary facilities are located in areas with developed social and transport infrastructure.
- Bargain with the owner and get a good discount in case of an urgent sale or need for repairs.
Please note that such real estate already has its own legal history, so you should be extremely careful when checking the cleanliness of title documents, the presence of encumbrances, and arrests.
It’s clear to answer which is more expensive – primary or secondary real estate in Turkey is not possible, since pricing is formed according to different parameters. For example, a modern apartment in a new building at the foot of the mountains may cost less than a secondary apartment near the sea, located in a populated, prestigious area.
Purchase procedure and registration cost
The procedure for purchasing real estate in Turkey consists of several stages:
- Selecting a suitable object.
- Preparation and signing of the contract, payment of the deposit.
- Preparing documents for the transaction.
- Making payment.
- Re-registration of ownership and Turkish Title.
- Conclusion of contracts for the provision of utility services.
During the sale transaction, the foreign buyer will need to comply with legal requirements such as:
- compulsory DASK earthquake insurance;
- obtaining an individual tax number (TIN) from the tax department;
- payment of all duties and taxes accompanying the procedure for acquiring Turkish property.
As for additional costs, in addition to the cost of real estate, the investor pays:
- 4% of the cadastral price of the property – tax on registration of ownership;
- 100–150 € – notarized power of attorney, if you do not plan to be personally present at the transaction;
- about 300 € – translation services and state fee for TAPU registration;
- 20–150 € – DASK insurance policy;
- 200–300 € – registration of subscribers for utilities for new housing and 50–150 € for "secondary".
Additionally, there may be costs for obtaining an Iskan (registration certificate) for apartments in a new building.
As a rule, associated costs for registering real estate in Turkey are much lower than in EU countries and do not exceed 5–8% of the cost of the property.
Purchasing without intermediaries: is the risk justified?
Is it possible to successfully purchase real estate in Turkey without intermediaries? Of course, if you know local legislation, the Turkish language, have complete information about the pricing of apartments and their nuances, and the reputation of developers. Otherwise, we recommend contacting a real estate company.
A professional real estate agency will not only help you check all the documents and accompany you during the re-registration of TAPU, but will also suggest an adequate cost of a particular property and agree on the best terms of sale and payment. In addition, experienced companies offer their clients after-sales service, which includes a huge range of services – from cleaning and property management to support when applying for residence permits and citizenship.
We hope that our article about what you need to know before purchasing Turkish real estate will help you make the right choice and implement all your goals investment goals. ;
The information is provided for informational purposes and is not of a commercial nature.
Point Property – is a certified real estate agency that specializes in providing a full range of real estate services for residential and commercial real estate transactions in Turkey. Our company takes care of all organizational aspects of a real estate transaction. In addition, we provide our customers with a wide range of after-sales services.
