How is the real estate market in Turkey developing and what are the chances for investment?

Development of the real estate market in Turkey

The real estate market in Turkey has been on the rise since 2010. Since then, it has gone through different phases, including the remarkable growth achieved until 2016 and long periods of stagnation that lasted for about a year and a half. However, from mid-2017 to the present day, there has been a resurgence of activity in this market, with the current dynamics significantly outperforming the pre-crisis season.

In modern conditions, square meters have become one of the safest and most affordable ways of investing finances, which is due to their stability compared to investments in gold and stocks. Even traditional banking instruments are unable to compete with this industry.

Forecasts and current interest in real estate

It is worth noting that interest in real estate as a way of investment will remain high for the next two to three years. This trend is likely to last until the banking system becomes reliable and stable. By that time, it is expected that the value of housing stock in Turkey will reach its peak, after which prices will gradually increase at a rate of 10% annually. Thus, at the moment, Turkey is really experiencing a “gold rush” time.

Growth factors

Factors contributing to this growth include:

• Good geographical location of the country
• Government support in the area of economic policy
• Impact of the pandemic and geopolitical events

These factors have led to increased interest in Turkey in general.

Market analysis

Two years ago we conducted a study on the real estate market in cities such as Istanbul, Antalya, Alanya, Ankara, Izmir and Bodrum. The results showed that the average price of an apartment with 1+1 layout then was about $80 thousand, but today it is impossible to buy even the simplest object for this money. At the moment the cost of such apartments starts from $150 thousand.

Property values in Turkey have increased by 70-100% over the last year. However, this is not an organic growth, and not all properties show the same positive dynamics. Some offers have reached the price ceiling.

Cost of apartments

For example, in the central part of Istanbul, 1+1 apartments with an area of 55-65 square meters already cost about $500 thousand. We assume that the price of housing will not decrease, but we cannot talk about a strong growth in this segment either.

Investment tips

For a successful real estate investment, it is worth targeting locations where there are plans to develop important infrastructure. This helps to increase the value of objects over the next few years at the level of 25-30%. In Istanbul it is advisable to pay attention to projects located in the area of the new airport, and in Antalya - the districts of Altıntaş and Fineke.

Promising areas

Altıntaş is located in the eastern part of Antalya, just 1.5 kilometers from the airport. There is a lot of vacant land in this area, intended for development, for which permits have already been obtained. Therefore, developers are actively working on projects in this area. It is important to be careful when choosing objects for investment and try to choose those that are located in close proximity to the existing urban infrastructure.

Fineke, located on the southern side of the Tekke peninsula near Kemer, is similar in scale to Alanya 5-7 years ago or the Konyaalti district in Antalya at least four years ago. By investing in these locations, one can expect a significant increase in real estate prices in the future.

Prospects in the real estate market

There are many undeveloped plots of land in the area, which stand out for their affordable price range. Even though the costs associated with construction are significant, developers are able to offer very favorable terms.

Housing prices in Finik

Today in Finick you can buy 1+1 housing for only $100,000. In the future, in a year or two, such real estate may rise in price by at least 35-40%. However, this does not mean that you should completely ignore the possibility of investing in real estate in Alanya. In this region also has excellent prospects for investment, but this issue should be approached with caution.

It's important to consider

It is important to realize that not all properties are guaranteed to provide a 25-30% return on resale.

Real estate in Istanbul

As for Istanbul, here the choice of real estate is much wider, but it is recommended to pay special attention to certain areas, such as:

• Büyükçekmeje
• Kadıköy
• Dying
• Atasehir

Mersin is also of interest, but it is important to note that in this city, many neighborhoods restrict residency and running a business can be challenging.

Difficulties in doing business

Cooperation with cadastral authorities and notaries is often accompanied by various difficulties. The large number of Kurds and Syrians living in the region also contributes to a stable business climate and a combination of European and Muslim traditions. This is often evident in cities such as:

• Antalya
• Alanya
• Istanbul
• Kash
• Ankara
• Izmir

Izmir Outlook

Measuring Izmir's outlook, it's worth noting that this city has its definite pluses - it is a major port city with access to the sea in places like:

• In Çeşme
• Alachaty
• Bornova

However, the climate here is less pleasant than in Antalya. The summer period is quite short, there are frequent winds and the sea temperature is sometimes quite cool, which makes Izmir less popular with those looking for the perfect coastal vacation destination. Although the quality of real estate here is very high and prices can rise, this is nevertheless a factor to consider.

Real estate in Gazipasa

Against such opportunities, the city of Gazipasa does not show much development. This coastal location in Antalya County has rocky shores, which is a definite disadvantage for buyers who expect a high level of resort facilities with direct access to the beach.

Examples of real estate

An example of real estate in Turkey is the offer of a villa in Fethiye for 500,000 euros. This 160 m² property has three bedrooms and three bathrooms and is located just five minutes from the famous Oludeniz beach. This gorgeous private villa includes its own private pool, garden and terrace with barbecue area. It is perfect for both permanent living and temporary vacations.

Also in Alanya you can buy a penthouse of 100 m² for 269 000 euros. By purchasing this property you will be able to obtain a residence permit. The new complex, located in Kargızhdak area, built by one of the leading construction companies, offers a variety of apartments with 1+1, 2+1 and 3+1 layouts, made with high quality materials. This project represents an interesting opportunity for those who are planning to invest in Turkish real estate.

Unique properties in Turkey

We present to your attention a number of exclusive properties in Turkey, which are ideal for both permanent residence and for investment purposes. Special attention should be paid to real estate in the popular resort of Alanya, specifically in the Mahmutlar area.

Here an apartment with a total area of 135 square meters is available at a price of249,000 euros. This spacious accommodation includes three bedrooms and two bathrooms, as well as the possibility of a residence permit upon purchase. All services can be used remotely, including a virtual tour of the apartment, and payment can be made in rubles.

Young people and families will appreciate the proximity to the comfortable beach, located just a300 meterswhich makes it a favorable proposition for investors.

Penthouse under construction

In addition, we have an interesting property under construction - a penthouse in Alanya, which is offered for a150,000 eurosThe area of this apartment is60 square metersand it has one bedroom.

Construction is expected to be completed inMarch 2023. Potential buyers will be able to take advantage of an installment plan for12 monthswith a down payment of30%which makes the purchase more affordable. The complex is located in a quiet neighborhood, just a950 metersfrom the sea, which will appeal to those seeking privacy.

Luxury villas in Fethiye

We cannot fail to mention the magnificent villas in Fethiye. These luxurious houses with an area of250 square metersare offering a price of660,000 euros.

Located in Kodja Chalish, the villas are designed using modern technology and high quality materials. Each accommodation is equipped with both outdoor and indoor swimming pools, as well as facilities such as hammam and sauna.

On the first floor there is a spacious living room connected to the kitchen, which creates a cozy atmosphere for relaxation.

Apartment in Alanya

Also in our portfolio we have an apartment in Alanya with the value of75,000 euros, with an area of48 square meters. It includes one bedroom and is located in the beautifully developed neighborhood of Avsallar.

This property boasts a well-developed infrastructure, including:

• pool
• parking lots
• fitness room
• saunas

The proximity to a clean and beautiful beach makes this offering particularly attractive.

Luxury villa in Gazipasa

For premium enthusiasts, we can offer a villa in Gazipaşa, with an area of150 square meters, at a cost of775,000 eurosThis exquisite house consists of three bedrooms and three bathrooms and is built on a spacious plot of land.1000 square meters.

The villa is fully furnished and ready for living. The windows offer a picturesque view of the sea and mountain landscapes, creating an atmosphere of comfort and tranquility, perfect for those who value peace and solitude.

Modern apartment in Oba

And finally, we have another apartment in Alanya at the price of330,000 euroswith an area77 square metersThis property is located in a modern residential complex in the Oba area, which is considered one of the most desirable places in Alanya.

Both are located near the city center, which creates a unique atmosphere due to the combination of vibrant urban life and peaceful seclusion.

Each of these properties is not just a living space, but a potential source of additional income alongside comfortable living in one of the most picturesque regions of Turkey.

Unique monument

On your way to a wonderful place, you will encounter a unique monument in the form of a rotating citrus fruit, situated in a water element. This original art piece welcomes all guests, creating an atmosphere of magic and inspiration from the very beginning of their journey.

Apartment in Alanya

In collaboration with Mayalanya Group, we are pleased to present to you an apartment in sunny Alanya, Turkey, at the price of164,000 eurosThis stylish residence is located in the Mahmutlar area and has an area of50 square meterswith the layout2This makes it an ideal option for comfortable living. The apartment is ready for occupancy and is equipped with high-quality furniture and appliances.

The residential complex where the apartment is located offers much more than just living space — it is a true residence with hotel-like amenities. Here you will find all the necessary conveniences, including:

• Sports grounds
• Rest areas

Magnificent apartments from RestProperty

In addition, RestProperty offers the opportunity to purchase magnificent apartments in Alanya for275,500 eurosThis property, with an area of130 square meterswith layout2+1located on the second floor of an eight-story building, built inin 2008The interior includes:

• A modern living room connected to the kitchen
• Two cozy bedrooms
• Comfortable bathrooms
• A small balcony with a picturesque view

A completed renovation frees you from unnecessary worries — just bring your belongings and enjoy life in your new home.

Apartment in Demirtaş

Another attractive offer from Zera Homes is an apartment priced at99,000 euroslocated in one of the cleanest and quietest areas of Alanya — Demirtaş. The total area of this apartment is56 square metersIt includes:

• Two bedrooms
• Cozy living room

This area is famous for its magnificent sandy beaches and tranquil atmosphere, away from noisy bars and large crowds of tourists. The city center is just a short distance away.25 kilometersand the international airport is in15 kilometersfrom the mansion.

Apartment in Mersin

The next interesting option is offered by Alanya Brand Group — an apartment in the picturesque city of Mersin. This cozy apartment costs78,000 eurosfor100 square metersand is perfect for renting. The layout2+1implies proximity to the sea — just300 metersto the beach in the Mezitli area. The infrastructure in this area is well-developed, allowing for a peaceful life combined with urban activity and amenities.

Apartment in Istanbul

In addition, we have a luxurious apartment in the prestigious Beylikdüzü district of Istanbul.166,373 eurosyou will become the owner of a stylish property with an area of48 square meterswith two bedrooms. This complex is located in an area with good transportation access, making it easy to get around the city. Surrounded by numerous cafes, restaurants, and shops, it creates a unique atmosphere and ensures a comfortable living experience.

This area is the perfect choice for those who want to be at the center of events while enjoying modern amenities.

Conclusion

Each of the presented options is not just a place to live, but a chance for a new life in various corners of Turkey. Explore the available options and choose what resonates with your heart!

Real estate in Turkey, especially in iconic cities like Alanya, Mersin, and Istanbul, attracts many investors. In this article, we will explore in detail the variety of apartments and villas that may be of interest to potential buyers, particularly those looking to obtain a residence permit (RP).

Proposals from Alanya Brand Group

Let's start with the offers presented by Alanya Brand Group. In their portfolio, there is an apartment in Alanya priced between 150,000 and 170,000 euros, which occupies 73 square meters and has a 2+1 layout. This property is located on the 1st, 3rd, 4th, and 8th floors, which directly affects the price. The complex where the apartment is located offers a wide range of amenities:

• two outdoor pools
• water park
• children's pool
• rest areas

Such an apartment can also be a profitable option for renting out.

Apartment from the company Ormanta

Another interesting option is an apartment from the company Ormanta, which is a large three-room apartment with an area of 158 square meters. The price range for this apartment is between 275,000 and 290,000 euros, and it also includes a garden, terrace, and private sauna. It is located on the first floor, which is convenient for families with children.

Challenges in the real estate market

In the Turkish real estate market, properties with long payback periods are predominantly emerging. When it comes to rental income, the return on investment period can reach 20 years or even more. It is quite difficult to establish an accurate forecast for properties that can generate income of up to 30% in a short period. The reasons for this are various factors, such as location, the reputation of the developer, the stage of project development, and much more. I recommend choosing projects where 60% or more of the buyers are locals.

The role of local residents in investments

It doesn't matter whether they buy apartments for personal living or for rental income, as they have a better ability to assess the situation and verify the reliability of the developer.

Foreign investors and their influence

There is an opinion that foreign investors have a positive impact on the Turkish real estate market, and this statement has both positive and negative aspects. A striking example is the situation in Alanya, where properties for foreign clients have been actively developed and built since 2010. This is why today almost 90% of property owners here are citizens of the European Union and CIS countries.

Changes in government policy

Nevertheless, the government authorities are changing the development strategy for this region and are starting to pay attention to other areas. What measures are being taken? In particular, restrictions are being introduced on the issuance of residence permits.

Residence permit and citizenship in Turkey

Regarding obtaining a residence permit and citizenship in Turkey, in 2022, the government authorities revised the conditions for obtaining a residence permit through real estate acquisition, as well as the citizenship by investment program.

• It is still possible to obtain a visa (ikamet) in Turkey based on the purchase or rental of property, but there are certain restrictions in place.
• Foreigners seeking to obtain a residence permit with the possibility of further naturalization should remember that the amount for purchasing real estate must start at $75,000 in large cities and $50,000 in smaller ones.

Tourist residence permit

When obtaining a tourist residence permit, foreign citizens can both rent and purchase any real estate, but with certain regional restrictions. Currently, foreign buyers cannot apply for a tourist residence permit in 1,169 areas of the country. Additionally, there are quotas, particularly in 781 areas, where the share of foreign citizens must not exceed 20% of the total local population.

Recommendations for obtaining a residence permit

Those who intend to obtain such a residence permit are advised to consider "open" areas, such as:

• central areas of Alanya;
• Upper Oba;
• Gazipaşa;
• The regions of Antalya that are set for renewal, such as Altıntaş and Finike.

Citizenship by Investment Program

The program for obtaining Turkish citizenship through investment offers several options for investing funds. One of the avenues is purchasing real estate worth at least $400,000 based on its cadastral value. The maximum waiting time for receiving a passport after submitting all the necessary documents is between eight to nine months.

There is also the opportunity to invest in the fixed capital of a Turkish company recognized by the Ministry of Industry and Technology, with a minimum investment amount of 500 thousand dollars.

Introduction

Questions regarding investment requirements in Turkey generate significant interest among both migrants and business representatives. According to the legislation of this country, there are certain restrictions on the withdrawal of funds for a period of three years.

Investments for obtaining citizenship

To participate in the citizenship program, investors must invest at least500 thousand dollarsIn Turkish banks for a minimum term of three years. In addition to this, there are options for investing in government bonds, which also start with an amount of 500 thousand dollars, providing access to receiving dividends.

This is just one of the possible forms of investment, which requires adherence to a certain minimum term – three years. Investors can also consider investing in venture funds or construction projects. It is important to emphasize that the initial mandatory investment amount isat least 500 thousand dollars.

Requirements for creating jobs

Companies that plan to provide jobs are subject to special requirements. An organization intending to operate in this country must be properly registered in Turkey and create at least50 new jobs.

If a person becomes the holder of a Turkish passport, it provides them with the opportunity for visa-free travel or a simplified visa regime in110 countriesincluding countries such as Japan, Singapore, Qatar, and South Korea. Additionally, having a Turkish passport opens up opportunities for business expansion and legal relocation of the family to the USA through special immigration programs E-1 (visa for entrepreneurs) and E-2 (visa for investors).

Acquiring real estate for obtaining citizenship

The most popular way to obtain citizenship is by purchasing real estate in Turkey, but there are certain conditions attached to this process. The first requirement is that the property must be purchased exclusively from Turkish citizens, and the transaction amount must beat least 400 thousand dollarsthat is recorded in a notarized certificate of ownership.

It will also be necessary to provide a report from an accredited appraisal company that confirms that the property valuation corresponds to the cadastral value, rather than its market price.

An important point is that the cadastral value can differ significantly from the market value, especially in attractive places for buying and selling, such as Antalya and Alanya. In some cases, the official assessment may turn out to be half of the actual purchase price. Meanwhile, in Istanbul, the difference between the cadastral and market price may be only0-10%.

The situation in the real estate market

According to recent studies, less than half of the real estate properties in Turkey are valued above.400 thousand dollarsthat calls into question the relevance of the other offers in the market.

Business opportunities

Turkish legislation offers numerous opportunities and solutions for businesses, especially for those facing difficulties with international payments. One way to address this is by establishing a legal address in Turkey. To do this, it is sufficient to register a limited liability company (LLC), which is not particularly difficult.

• The minimum charter capital for opening an LLC is100 thousand lira.
• The registration process takes no more thanten days.

In this case, there is no need to involve local partners. However, for foreign entrepreneurs wishing to open a company with an office in Turkey, stricter requirements are in place.

• A foreign founder does not have the right to independently issue a work invitation.
• This is only allowed after being employed for at leastfive citizens of Turkey.

Conclusion

Thus, Turkey offers a wide range of opportunities for investors and entrepreneurs. However, it is essential to consider the legal requirements and conditions in order to successfully conduct business and obtain citizenship. The investment and citizenship acquisition program has both its advantages and disadvantages, and before making any decisions, it is important to carefully study all the nuances to avoid potential problems in the future.

In every company operating in Turkey, it is extremely important to have a manager who must be a local citizen. Their functions may be subject to certain legal restrictions. Our company offers a variety of services, including assistance with starting and registering a business, in-depth analysis of the market situation and competitive environment, as well as the development of effective strategies for future growth and the organization of a comprehensive process for relocating a business to Turkey.

Taxation in Turkey

All enterprises operating in Turkey are required to pay a corporate tax, which ranges from 20% to 23%. Companies that provide services or engage in the export and import of goods are subject to a value-added tax (VAT) of 18%. Since 2022, representatives of the food sector pay tax at a reduced rate of just 1%. The country also has special economic zones with unique tax regimes, which positively impacts the development of industry and trade.

Promising business directions

What types of businesses can successfully develop in the Turkish market? Among the most promising areas, it is worth highlighting:

• Real estate sector (for example, creating hostels);
• Services in the tourism sector;
• Various types of services, including beauty salons;
• Restaurants with international cuisine;
• Events;
• Education, especially online learning;
• Logistics services related to export;
• The agricultural sector with new developments, such as modern greenhouses for bananas.

Investment opportunities in the agricultural sector

Since 2016, we have been successfully operating in the agricultural sector and are interested in attracting investors who wish to invest in this capital-intensive industry. The development of banana production in Turkey began about 16 years ago when local production accounted for only 20% of total consumption. At that time, the government initiated a project that provided subsidies to entrepreneurs in this field, reimbursing 50% of their investments without any conditions. This contributed to an increase in domestic production to 80%, which in turn significantly reduced imports. Now, the authorities are working on creating conditions for export supplies, including the establishment of packaging plants.

Our investment model

When our company first entered the market in 2016, the payback period for an investment in a greenhouse of 1.5-2 hectares was only 2.5 years with an investment of 250-300 thousand dollars. Currently, this period has increased to 5 years due to the rise or change in required investments. Now the minimum investment amount must be at least 500 thousand dollars.

We offer the opportunity to manage both a company and a greenhouse for three years. The investor will be able to earn profits from the sale of the harvest: the first income can be expected after a year, and then every eight months.

Contacts

If you are interested in real estate investments in Turkey or planning to relocate your business to this country, feel free to reach out to the specialists at our company, Expert Group. They are ready to provide you with all the necessary information and consultations. Our office is located in Antalya, in the Muratpaşa district on Mevlana Street, in the Midtown business center, block A, 2nd floor, office 7. You can contact us at +90 532 637 14 04.

Conclusion

In conclusion of this research, it is important to emphasize that the Turkish real estate market continues to be attractive to investors, despite existing risks and fluctuations. In recent years, we have witnessed a significant increase in residential property prices, which confirms the heightened interest from both local and foreign buyers. Moreover, positive changes in Turkey's economy, such as infrastructure development and improvements in the business environment, contribute to this trend.

Investment outlook

I believe that in the next two to three years, investments in real estate in Turkey will remain profitable. This is due to the fact thatDemand will continue to exceed supply.especially in developing regions, where active construction of socially significant infrastructure is expected. The real estate market not only provides an opportunity to effectively preserve capital but also to increase it with a skillful choice of locations.

Key recommendations for investors

• Approach investments mindfully;
• Carefully choose your objects;
• Prefer regions with high growth potential.

This will not only minimize risks but also allow for a confident outlook towards the future when property values will steadily increase.

A general outlook on the future

Ultimately, the choice to live or invest in Turkey is not just a financial decision, but also a step towards gaining a unique life experience in a country with a rich culture and limitless opportunities. I hope this analysis helps you make the right choice and opens new horizons for investing and living in this beautiful country.