Why is it worth investing in real estate in Turkey in 2021?

The rise in real estate prices in Turkey

According to a study by specialists, the real estate market in Turkey saw a price increase of approximately 30% in 2021. This change occurred due to a variety of factors, the main one being the growing interest from foreign investors in this sector.

New players in the market

Helped by experienced players in the market with in-depth knowledge of the advantages of this region, newcomers seeking to buy a home for rent in Turkey have started to actively enter the market. In order to provide advice on choosing an apartment in this country, the journalist together with architect Anton Garustovic discussed the main aspects and tips for future buyers.

Why should one consider purchasing property in Turkey?

Although this country has been attracting professionals for a long time, there has been a significant increase in the number of new buyers entering this market for the first time this year. Many of them lack the necessary information to make the right investment choices.

Key questions for beginner investors

What points should beginner investors consider? How can they avoid mistakes and scams when buying real estate?

Determining the purpose of the real estate purchase

The first step that a potential buyer should take is to define the goals of purchasing real estate. What primary function should this property serve? The answer to this question will set the direction for choosing real estate not only in Turkey but in any other country as well.

• For relaxation:If the goal is to enjoy a summer vacation and the sun, it's worth considering apartments located on the second or third line from the sea, and in less crowded areas.
• For rent:If the apartment is planned for passive income, it is recommended to pay attention to such cities as Antalya, Mersin and Istanbul.
• For permanent residence:If the main goal is to obtain permanent residency for the whole family, it would be better to consider options in Istanbul or Antalya, as these places have well-developed infrastructure and social life.

Financial benefits of acquiring real estate

Among the reasons for buying real estate in Turkey can be added not only the obvious material benefits that can be achieved in both the short and long term.

Possibility of obtaining a residence permit

An important aspect is the possibility of obtaining a residence permit. Since 2013, Turkey has had Law No. 6456 "On Foreigners and International Protection," which clearly defines the conditions for obtaining a residence permit. According to this legislation, there are six types of residence visas available in the country, one of the conditions for which is the ownership of real estate.

The main advantageThis type of residence permit is characterized by the absence of requirements for a minimum property value, which opens up additional opportunities for foreign investors and buyers.

Disadvantages of obtaining a residence permit in Turkey

The main drawback of obtaining a residence permit in Turkey is the lack of visa privileges for traveling to various countries around the world. Additionally, to maintain their status, the permit holder must stay in Turkey for at least six months within a year; otherwise, they risk losing that status.

However, there is the possibility of gettingTurkish citizenshipThrough investments in real estate worth €250,000, which opens up amazing opportunities for investors:

• Visa-free access to 110 countries
• Simplified citizenship acquisition in the United Kingdom
• Right to transfer citizenship to spouse or children

The appeal of Turkey

Turkey is an amazing country that attracts interest due to its natural beauty and cultural heritage. It is surrounded by four seas: the Sea of Marmara, the Black Sea, the Aegean Sea, and the Mediterranean Sea. The uniqueness of Turkey lies in the fact that it is located on two continents—Asia and Europe.

Most of the country covers the Anatolian Peninsula and the Armenian Highlands, while the eastern edge of the Balkan Peninsula already belongs to Europe. Turkey holds significant strategic importance in global trade, as it connects numerous routes linking different parts of the world.

Tourism and economy

The tourism industry in Turkey occupies one of the most significant positions in the economy because of its unique climate, thermal springs, picturesque mountains and magnificent beaches. All this makes the country incredibly attractive for travelers.

The real estate market is actively developing, modern infrastructure is being created, and new roads are being built at a rapid pace. Investing in real estate is becoming a simple and obvious way for people interested in this field to earn money.

Trends in the real estate sector

It is also noteworthy that Turkey is experiencing rapid development of various trends in the real estate sector. There are old neighborhoods being demolished to make way for new residential complexes.

Despite the fact that the social infrastructure sometimes fails to keep up with the pace of construction, a variety of stores, cafes and restaurants can be found at almost every step. Prices for apartments in new housing projects remain very affordable.

In popular resort areas, before the pandemic, it was possible to buy a one-bedroom apartment for just €35,000.

Popular regions for buying real estate

Among the Turkish regions that are most in demand for real estate purchases, special attention is drawn toAntalyawhich is currently considered the most developed tourist destination. It is here that the best resorts are concentrated, making the region highly desirable for investors and real estate buyers.

In this material, I will not delve into the commonly accepted advantages and picturesque views that have already been mentioned many times, and all the necessary information is available in public sources. It is important for those planning investments to understand that while Alanya boasts one of the longest tourist seasons in Turkey, strong storms with powerful winds and heavy rainfall can occasionally occur here in December.

For example, just two weeks ago, the airport stopped receiving flights for a whole day because of a terrible storm that raged from 7 am to 4 pm. But as soon as the weather improves, life in the city quickly returns to its usual rhythm. Such natural phenomena do not make it impossible to buy a rental property, but it is important to consider the impact of seasonal changes.

Real estate prices

Due to the high tourist appeal of this region, especially among vacationers, many incoming visitors choose Antalya for their trips, which in turn leads to an increase in real estate prices.

• Don't expect particularly advantageous offers here, as the average yield is only5-7%annual.
• Finding an affordable apartment on the first line of the seaside is quite a challenging task; prices vary from60 to 80 thousand euros.
• If you move a little inland from the coast, you can find interesting options for...50 thousand euros.

For example, in Konyaalti a two-bedroom apartment costs152,000 euroswith an area of120 square meters...while a two-bedroom apartment in the same area is valued at...71,400 eurosand has an area70 square meters.

Promising locations for purchase

When it comes to potential locations for purchasing real estate in Turkey, Alanya is confidently maintaining its position today, attracting more and more buyers and investors. The main pros and cons of the region are generally similar to those of other resort areas:

• Magnificent beaches.
• A warm, albeit changeable climate.
• Excellent quality local agri-products.
• Along with not always clean water.
• Lack of central heating.

Nevertheless, Alanya is actively developing, making it quite attractive for investments. New residential complexes are being built in the area, new hotels are opening, and well-known brand stores are emerging, which contributes to improving the image of the locality.

Popular destinations among tourists

Among tourists from the CIS countries, as well as the Germans and British, Alanya is very popular, not lagging behind and Kemer, which is located along the coast and surrounded by green areas. Kemer is rapidly gaining popularity and comparing with Antalya, which directly affects the growth of real estate prices.

Accordingly, it is becoming increasingly difficult to find truly profitable investment opportunities in this region.

Buying real estate on the primary market

Purchasing real estate on the primary market, that is, directly from the developer during the construction process, is an attractive option for many buyers. However, it is essential to approach the selection of new buildings with particular caution and attention to detail. Potential owners of apartments in new developments may have various expectations and goals, and in this article, I want to discuss a new trend in the Turkish real estate market — "turnkey" villas.

Turnkey format

This format means that developers build entire residential complexes of several dozen cottages or villas, which are then offered to buyers in a fully finished state. For example, in Kemer you can find such offers:

• Villa with four bedrooms and a sauna for 330,000 euros.
• A three-bedroom option with security for a total of 135,000 euros.
• More luxurious villas can cost around 570,000 euros.

This should be taken advantage of by those buyers who want a ready-to-live-in property with no additional costs or repairs.

Istanbul as a rental market

However, it is worth noting that many inexperienced investors may not see Istanbul as an attractive city for real estate purchases. This decision inevitably carries risks, as rental housing is extremely popular and active in this metropolis. Apartments are literally sold out within hours, which can be attributed to the presence of a large number of educational institutions — nearly 50 universities attract students from all over the world.

However, it is important to take into account the high housing prices, as well as the less comfortable climate conditions compared to the southern regions of the country.

In Izmir, the sea water temperatures do not reach the high levels found in Antalya; however, the focus here is on health and wellness procedures. This city is currently experiencing impressive growth, driven by numerous construction projects across various sectors. For example, there are plans to transform Izmir's central street into a space reminiscent of one of New York's bustling neighborhoods, although the significance of this comparison may be ambiguous. The head of the local chamber of commerce reported that approximately 30,000 new apartments are planned for construction in the next 12 months. This indicates that the residential real estate market in Izmir will become significantly more diverse in the near future.

With high prices for land plots in such sought-after locations as Antalya or Alanya, international construction companies are increasingly turning their eyes to Izmir. According to experts,“Every client matters.”.

How to avoid fraud in the real estate market?

How can one avoid traps set by scammers? What pitfalls does an inexperienced buyer risk encountering in the real estate market in Turkey? In any market, especially in real estate, newcomers can face numerous challenges and tricks. I will try to highlight the points that are more noticeable specifically in Turkey.

Understanding housing prices

The first thing to pay attention to is the excessively attractive price of apartments in popular areas. Looking at the trading history in this country, it becomes clear that the well-crafted marketing strategies of Turkish developers can confuse even experienced investors. Here, the process of buying real estate resembles a lively market trade, where sellers skillfully manipulate the attention of potential buyers, using various distracting techniques and emphasizing key points.

Competition in the market

It's important to remember that competition for customers can sometimes reach unprecedented levels. For example, my acquaintances shared a situation where a buyer was set on purchasing a specific apartment:

• The developer presented all the advantages of the property.
• We have reached preliminary agreements.
• However, it only takes a moment's distraction before another real estatedeveloper could "win him over" to his side.

The situation seems positive, as the buyer has found a new housing option, but it emphasizes the importance of being careful not to purchase something that does not meet expectations.

Be attentive to the offers.

The competitors' desire to lure away clients can even manifest at the airport; it's important to be prepared for this. However, it should be noted that the process of purchasing an apartment in new residential complexes in Turkey is generally quite secure. The key is to work with reliable developers who have experience in the market and to carefully read the terms of the contract.

The importance of a quality contract

A quality agreement should necessarily include a clause on compensation for shareholders in case of delays on the part of the developer. This will protect the buyer's interests and help avoid many problems.

Conclusions

Therefore, by following the principles of caution and paying attention to details, one can avoid many mistakes when making a real estate purchase in such a beautiful city as Izmir. Considering the development of infrastructure and the increase in the number of new projects, this could be a great opportunity for investment and obtaining housing that meets your wishes and requirements. Be sure to follow the recommendations and be attentive at every stage of the process, so that your new home brings you only joy and comfort.

Conclusion

In conclusion to our analysis of the real estate market in Turkey, we would like to emphasize that this segment represents a dynamically developing and attractive area for investment. With rising property prices, which experts estimate reached 30% in 2021, we are witnessing a steady increase in interest from both experienced investors and newcomers eager to take advantage of favorable conditions for purchasing housing.

As I mentioned in the article, first and foremost, it is essential to define the purpose of the purchase. Whether it is an apartment for personal leisure, rental, or permanent residence, each option requires a tailored approach to selecting the property. Against the backdrop of a growing number of options, newcomers can easily get lost in the complex variety of offers, making consultations with professionals, such as architect Anton Garustovich, particularly relevant.

Unique living conditions

Turkey, located at the crossroads of cultures and trade routes, offers unique conditions for living and leisure. Among the many attractive regions, such as Antalya, Mersin, and Istanbul, it is important to choose the one that best meets your expectations and requirements. This applies not only to the social environment and infrastructure but also to the climatic conditions, which can significantly affect the quality of life and return on investment.

Legislative aspects

The legal aspects associated with obtaining residency through the purchase of real estate are also becoming key factors for many investors. The possibility of obtaining citizenship and physical presence in the country opens up new horizons and important advantages to consider when making a purchase decision.

Results

• Purpose of purchase:Determine what you need the property for.
• Region:Choose regions based on your preferences and goals.
• Consultations:Utilize the help of experts to select a facility.
• Legal aspects:Consider the possibility of obtaining a residence permit or citizenship.

Thus, when choosing real estate in Turkey, it is important to consider not only current market trends but also personal goals, capabilities, and preferences. With the right approach and understanding of the local specifics, investing in Turkish real estate can become not just a successful investment but also a foundation for a new life in a beautiful country with a rich history and culture. Finally, I would recommend everyone who is thinking about purchasing property in Turkey to conduct thorough research and seek assistance from professionals to ensure a reliable and profitable investment.