Investment Real Estate in Turkey: A Path to Financial Stability

A real frenzy has developed in the Turkish real estate market since 2022. There was a huge influx of foreign residents due to the global political situation. Foreign investors were attracted not only by the country itself, its developed economy, and wonderful climate, but also by the simplified process of buying property and the opportunity to obtain citizenship. This led to a surge in real estate prices, and many saw it as a way to preserve their money.

Advantages of investing in Turkish real estate

Investing in real estate in Turkey is very attractive for many reasons.

1. Prices are lower compared to those in Italy, Greece, and Spain.

2. There is a price choice among the properties; you can buy a luxurious and expensive villa or a small budget apartment.

3. The process of completing a purchase is so simple that it doesn't even require the buyer to be in the country, and the entire procedure takes just a few days.

4. Purchasing from the developer allows for interest-free installment payments.

5. Turkey has a very developed economy; it ranks 6th in Europe.

6. The purchase fee is 4% of the cadastral value, and the annual tax is 0.3-0.6%. This is a lower cost compared to other developed countries.

7. By acquiring real estate, one can quickly obtain citizenship, which is the main goal for some foreigners. Large migrations are the reason for the rise of the real estate market in Turkey.

8. In the southern, resort areas of Turkey, there is a steady increase in prices and demand for apartment rentals. The country has a very developed domestic tourism sector. This can be a good source of passive income and a successful investment.

Desired Turkish citizenship is one of the reasons for purchasing real estate. The government has changed some conditions for issuing passports in exchange for property purchases. It is no longer possible to buy multiple properties, sum their value to reach $400,000, and obtain citizenship. Additionally, now only one foreigner (including their family) can own a single property. It was popular to pool resources to buy an apartment for obtaining citizenship. Several owners would register at that apartment, and all would receive residence permits. The amount required for obtaining citizenship through property purchase was lower — $250,000.

According to experts' reviews, the real estate market and the country's economy have positive prospects and good growth dynamics.

Growth of the Turkish real estate market

According to reviews from the European Public Real Estate Association, also known as EPRA, there was a rapid growth in the real estate market from 2020 to 2023, exceeding 50%. Foreign investors invested 5 billion dollars just in 2022. From 2008 to 2022, the annual sales volume tripled. There were 427 thousand transactions per year, which increased to 1.5 million transactions. During this period, 380 thousand properties were sold. The commercial real estate sector grew from 208 to 300 billion dollars. Importantly, the investments made by foreigners are directed towards developing economies. The majority of real estate capital investments are concentrated in Istanbul, Antalya, and Mugla.

After the terrible earthquake in Turkey, there was a forecast for an influx of additional investments amounting to 15 billion dollars. An economic strategy has been developed in Turkey, with the main focus being on investing money in the transformation of cities. In Istanbul, around a million homes will be transformed, which will boost the city's housing market. The real estate sector is key to the development of the country's economy.

Commercial real estate

Commercial real estate is a type of property used for profit generation. This can include offices, shops, warehouses, and spaces for various service industries. It's best to acquire a versatile space without specific features, where different types of businesses can be located and rented out.

It is advantageous to acquire premises on the ground floors of buildings or separate buildings. Modern high-rise buildings are constructed with shops and salons located on the ground floors.

When buying, it's important to determine the location of the property.