Over the last few years, Turkey has become one of the most privileged destinations for foreigners when it comes to buying real estate property. Do you want a house where you can spend regular holidays in one of the beautiful Turkish cities but you keep hesitating? Or do you want to invest in properties for an eventual short- or long-term rental but don’t have enough information to proceed? In this guide, we will cover all the potential questions you might have concerning buying properties in Turkey as a foreigner. We will describe the whole process of investing in real estate as well as the restrictions you must consider before taking your final decision. So, let’s dive in!
Why would you invest in real estate property in Turkey?
There are many reasons why investing in real estate property in Turkey can be a really interesting opportunity. First of all, Turkey is a country that attracts tourists from all over the world and this attractiveness is a guarantee of a good Return On Investment (ROI). Besides, this means that you can make significant profits on renting the properties you purchase either for the short or long term.
Now you might think that these are the only advantages of investing in real estate in Turkey but there are more! For instance, the process of buying properties is simplified compared to those of European or American countries. Also, you should know that you have many options concerning the type of property to purchase. It can be a renovated apartment, a luxury building, a new one, a villa, or anything you may be keen to buy.
The process for buying a property in Turkey
As we said before, the process of buying a property in Turkey is quite simple. But there are a few things you need to do before actually deciding to buy any property.
Be aware of Turkish real estate laws and rules
As a foreigner, you might have no idea about the laws when it comes to buying a property in Turkey. To preserve your rights, you must read carefully and understand clearly the rules that apply to real estate. This will prevent you from fraud and legal issues.
You also need to be fully informed of the restrictions you will face as a foreigner who buys or rents a property in Turkey. The most important ones to keep in mind are :
- As a foreigner, you cannot purchase more than 30 hectares of land
- You cannot buy or rent a property within a military-forbidden area
Find the property that fits your needs
The next step of the process is to research the property with the criteria you have already defined. You should consider the prices, the location, and the possibilities for renting or selling for foreigners. You should also check the trends in the property market of the country. Now you must be wondering where you can find all this data. Well, you can either do research online or ask for help by finding a local real estate agent who would give you everything you need to know before moving forward in the process of buying a property.
Visit Turkey to inspect the properties you would likely choose
You might think it’s not necessary, but as a foreigner, you should not buy a property without checking how it looks with your own eyes. You should also check the conditions of the house, the neighborhood and the commerces around.
Discuss the terms and negotiate the price of the purchase
Once your mind is made up about the property you would buy, negotiate the terms and the price of the purchase. Make sure you discuss with the real estate agent to get the best price range and the most advantageous terms of sale.
Reserve the property and finalize the purchase
The next step of the process is to reserve the property by paying a small deposit to freeze the price over time. Then, you can engage an attorney who will finalize the purchase for you if you ever need to leave Turkey or you can do it yourself if you’re willing to stay until you sign the contract.
Sign the contract and get your Title Deed (TAPU)
The final step of the process of buying a property in Turkey is to complete all the paperwork
required to acquire the Title Deed (TAPU). This document confirms your ownership of the real estate you’ve just purchased.
Common questions investors have about buying properties in Turkey
Now that you know everything about purchasing a real estate property, we can go further by answering the questions potential investors have about investing in Turkey and renting their properties for the short term.
Can you get citizenship when buying a property in Turkey?
Well, this depends on the value of the property you are about to buy. This value must be no less than 250 000 dollars in which case you can become a Turkish citizen as long as you do not sell the property for a minimum of three years.
How is the real estate market in Turkey?
The real estate market in Turkey is known actually for its growth which gives you great opportunities when it comes to buying or renting a property.
How much is the price of a house in Turkey?
The average price of a house in a town in Turkey is about 1561,65 dollars per square meter. This price varies depending on the neighborhood, the accommodations, and the type of property. For instance, houses or apartments in central Istanbul or Ankara can be much more expensive while luxury properties can reach millions of dollars.
How to find a good real estate agent in Turkey?
You can easily find a real estate agent in Turkey online or by choosing a real estate agency that will provide you with everything you need to know while buying your property. Make sure you ask for recommendations from people who already bought properties in Turkey. And try to find a real estate agent who is experienced and has a perfect understanding of the real estate market in Turkey.
What are the prohibited areas for foreign investors
Foreign investors are not allowed to buy real estate properties in the neighborhoods that have borders with Syria for instance provinces of Kilis, Mardin, and Hatay.
There are also specific restrictions for Russian investors who are not allowed to buy properties on the Black Sea coast.
Both Turkish and foreign investors cannot buy properties in the strategic areas defined by the government and also in the lands that have natural resources.
Is renting properties profitable in Turkey?
It can be profitable especially if your property is well-located and attracts potential tenants. Coastal cities like Antalya can give you high rental profits since they attract many tourists every year. This profitability is however affected by the period of the year, the taxes you have to pay, and the variation in the value of the Turkish Lira.
Where to buy real estate in Turkey?
You have many choices as to where to buy a property in Turkey. Make sure you choose a city where you can rent your property without any difficulty and guarantee stability in your rental income.
The mistakes to avoid while investing in real estate in Turkey
In the end, we would like to give you an overview of the mistakes you should avoid while buying a property in Turkey :
- Doing things on your own without consulting a real estate property can turn out into a disaster if you make the wrong investment
- Buying a property remote without even checking its characteristics
- Buying a property in a rush without checking the legal aspects and the terms of the contract
- Not setting a goal as to why you are buying the property (rental outcome, your vacation…)
If you need to have a better idea about the cities where to invest in short-term rentals, read our article on the topic here.
We are getting to the end of this guide. We hope it will be helpful for you and that it answers most of your questions concerning investing in real estate in Turkey. The Welcome Concierge team is ready to support you if you need any help with your property rental management. You can book an appointment with us by clicking here.
