The last few years have shown that the Turkish real estate market is ready to offer foreign investors a huge number of high-quality and diverse properties to suit any buyer's needs. Against the backdrop of a favorable investment atmosphere, the number of capital investors from abroad is growing, as evidenced by official statistics.
For its part, the Turkish government is creating simple and transparent conditions for the acquisition of property by foreigners in order to increase the volume of capital flows from outside into the state's economy. Todayinvestments in real estate in Turkey – a promising and profitable direction with minimal risks.
A crucial moment for each investor – choosing the right investment scenario. It is this issue that we propose to understand in our article.
Investing as a way to preserve capital
Turkish authorities have built one of the most competitive housing markets in the world, and this has long been understood by businessmen planning to increase their capital in the years ahead. < /p>
According to experts, it is real estate today, in a period of economic and geopolitical upheavals, that has become the most reliable way to preserve savings. Therefore, many buyers from abroad flocked to the Republic of Turkey to save their savings from inflation.
Successinvesting in real estate in Turkey in order to prevent the depreciation of money, the following is provided:
- constant growth of the country's economy;
- tourism development;
- increasing the cost per square meter in popular tourist and resort regions;
- active construction of liquid housing from developers: villas, penthouses, duplexes, inexpensive apartments and other objects.
After purchase, the apartment can be used for your own residence, relaxation in comfortable conditions during vacations, and after a few years can be sold at a higher price.
A huge plus for foreigners – Residence permit and Turkish citizenship for investing in real estate. Buyers receive a residence permit regardless of the cost of the apartment. To obtain a second passport using an accelerated and simplified procedure, investors need to purchase property in the amount of $400,000 or more.
Investing for the purpose of resale of real estate
Popular investment scenario – purchasing a home for the purpose of resale. Profitability from investment in real estatein this case depends on many factors. In particular, in what market – primary or secondary – object purchased.
Purchase on the secondary market
«Secondary» in Turkey has some advantages over buying apartments in a new building. In particular, such objects are usually located in populated areas, which is important when running a rental business.
The profitability of standard apartments from the secondary market has certain risks associated with the legal purity of title documents, worn-out engineering, outdated repairs, elevators, minimal amenities and a set of infrastructure facilities.
Therefore, in the case of investments in resale real estate in Turkey It is more appropriate to talk about saving capital, rather than about receiving tangible income from resale. The exceptions are:
- objects with unique characteristics (for example, by location);
- apartments that are only “de jure” belong to the “secondary”, and “de facto” – This is a completely new home.
Purchase of real estate from a developer
The undeniable advantage of buying apartments in new buildings in Turkey – cost, which may increase significantly. Thus, from the start of sales at the excavation stage to the commissioning of the house, the price of the property increases by 20–30%. For comparison, during the construction period of a new residential complex (one and a half to two years), the price tag for apartments “second-hand” in the same area it rises much more slowly.
Another important advantage of investing in Turkish new buildings – high liquidity. This feature benefits those investors who invest in real estate for the long term. Resaleresort real estate in Turkeyat a good price is quite possible even after a few years, unlike outdated square meters on the secondary market. Some investors, having bought high-quality apartments in prestigious areas, against the backdrop of rising prices for living space, today resell them with a profit of 40–50%.
When investing in primary real estate, it is important to choose a residential complex and construction company wisely. The support of professionals represented by a real estate agency will help you avoid any failures.
Investing to generate passive income
Passive income from investing can be obtained by purchasing an apartment in Turkey for short-term or long-term rental rent This is one of the most popular investment scenarios for many foreign citizens. An investor purchases an apartment or villa specifically for rent and, with the right approach to choosing an object, can almost immediately begin to receive a stable profit. But there are several nuances that you should know about in advance.
Short-term rent
Individuals in Turkey have been prohibited from renting out housing on a daily basis since 2017. This type of commercial activity is available only to legal entities with a special license subject to the following conditions:
- The building or part of it must have at least 30 sleeping places (beds).
- The residential complex provides security, video surveillance, fire alarm and stairs.
- The legal entity registers each guest with the police, regardless of his age.
Of course, all of the above efforts are completely justified if you have invested in the purchase of several rental properties and are serious about developing this type of business.
When choosing housing for rent, you should consider the following characteristics:
- Location. Most foreign investors choose resort regions of the Republic of Turkey – Alanya and Antalya. On the Mediterranean coast there is a long swimming season, beautiful nature, developed infrastructure and services, good transport accessibility.
- Distance from the sea. The closer you are to the beach, historical and natural attractions, and entertainment infrastructure, the more likely it is that your apartment will be in demand among vacationers.
- Area. As a rule, spacious apartments with a good layout are in demand among tourists.
- Internal state. Short-term rental assumes that the apartment will have everything necessary for comfortable living and recreation: from household appliances and furniture to towels and dishes.
Long-term rent
Long-term rental – This is a rental period of one month or more.
Investments in Turkish real estate for long-term rental – a real opportunity to earn passive income. This type of rental business is available to individuals in Turkey, but requires mandatory registration of all guests with the Office of Civil Status and Citizenship under the Ministry of Internal Affairs and notarization of the agreement.
Apartments for long-term rent are in demand both among foreigners and local citizens.
When choosing an object, pay attention to the following characteristics:
- Housing type. Small apartment, villa or spacious apartments – the choice depends on your purchasing budget.
- Location. Apartments and houses are in demand in green resort areas with developed urban infrastructure, away from the hustle and bustle of the tourist and business areas of the resort.
- The condition of the residential complex and apartment. Since tenants are planning a long stay, it is important to provide them with the most comfortable conditions and safety. Please note that the residential complex has a developed infrastructure, parking, security and video surveillance, good layout and amenities of the apartments.
Most buyers from abroad who want to receive passive income from real estate in Turkey span>, resort to guaranteed rental services from real estate companies and developers. Employees of the management company will assist in choosing suitable housing and will take care of all the hassle of finding, moving in, registering, and checking out guests. Under the terms of the contract, you will receive a percentage of your income and, if you wish, relax in your apartment several times a year.
Return on residential property from rental is about 5–15% per annum.
Summary
Investing in Turkish real estate with a competent approach guarantees you the preservation of savings and good profits. Point Property specialists will help you decide on the right strategy. Leave a request for a call back and we will contact you as soon as possible.
These materials have been prepared for informational purposes and are not of a commercial nature.
Point Property – a certified real estate agency specializing in providing a full range of real estate services for transactions with residential and commercial real estate in Turkey. Our company takes care of all organizational aspects during purchase and sale transactions: searching for an object, organizing a sightseeing tour, assistance in collecting and checking the legal purity of documents, support during the re-registration of ownership. In addition, we provide our customers with a wide range of after-sales services.
