If you’re wondering how to invest in Turkish real estate and which properties are the most promising right now, this article is for you.
Why is Turkish real estate a popular earning tool for foreigners?
Investments in new builds and secondary housing in Turkey in 2024 continue to be a popular investment instrument for foreign citizens. Why?
-
Stable development of the Turkish economy
The Republic of Turkey has excellent prospects for comprehensive development and for taking leading positions in the global market. Its strategically advantageous location, combined with analysts’ forecasts, suggests it will soon rank among the top ten countries with actively developing economies. Despite all difficulties, Turkey’s GDP continues to grow. This further confirms the benefits of investing in the real estate sector.
-
Convenient investment conditions
Investments in Turkish real estate are predictable and are least affected by external factors. In other words, your apartment, well-built and located in a good area, will remain a liquid asset in 5 or 20 years.
Additionally, the Turkish government provides one of the most liberal regulatory regimes for foreign capital, guaranteeing investors comprehensive support and additional incentives.
When buying apartments in Turkey, you know exactly what you will receive in the end, meaning if you take risks, they are minimal. Of course, there are risks involved when purchasing property in new builds and the secondary market. You could encounter unscrupulous developers or scammers. Make sure to enlist the support of experienced realtors who will verify the legal cleanliness of the property, recommend a trustworthy construction company, and help you weigh all the pros and cons of investing in a certain piece of property.
-
Geographical location
The Republic of Turkey is situated at the intersection of major trade routes connecting Europe and Asia. This is why neighboring countries in Africa, the Middle East, and Europe are interested in continuously attracting funds into Turkey’s economy and establishing long-term business relationships.
-
Bright prospects for tourism
The demand for Turkish resorts among tourists from around the world is growing, especially amid several migration waves from various countries. The tourism sector is supported by the government. Local entrepreneurs are keen to create all conditions for providing foreigners with European-quality service.
Many foreigners today increasingly prefer to rent apartments rather than stay in standard hotels. Therefore, well-chosen seaside apartments, with proper management, will not remain vacant.
-
Developing infrastructure
Over the past decade, the Republic of Turkey has changed beyond recognition. The country is undergoing large-scale transformations, updating old infrastructure and building new urban facilities, bridges, highways, and tunnels. The construction sector is actively developing. Developers are quickly constructing ultra-modern residential complexes with their own infrastructure, which are being purchased by forward-thinking investors for cash or in installments at the foundation stage.
-
Variety of investment options
The development of the housing market guarantees foreign buyers a large pool of options to choose from—ranging from affordable apartments to luxurious villas with private gardens and pools in Alanya, Antalya, Mersin, or Istanbul. Liquid options exist across all categories of real estate.
-
Flexible investment schemes
Some of the most effective investment schemes include:
- Purchasing apartments for rental purposes to receive stable passive income. By signing a guaranteed rental agreement with a real estate agency or developer, the owner can start earning profits immediately. This guaranteed rental arrangement frees you from the necessity of finding tenants and managing their move-in yourself.
- Buying apartments in residential complexes with five-star hotel infrastructure. Such complexes are specifically built for short-term rentals and offer guaranteed returns for up to three years. For a new hotel, profits are around 5-10% per year.
- Another popular way to achieve good income (about 30%) in the short term is to purchase housing at an early construction stage with the intent to resell immediately after the building is commissioned.
-
Attractive market offers
Purchasing square meters in Turkey is quite straightforward. The sales transaction procedure, provided you cooperate with an experienced real estate agency, is thoroughly streamlined from A to Z, minimizing the risks of acquiring illiquid assets and ensuring minimal expenditure of your personal time.
-
Affordability of real estate
Entering the Turkish housing market does not require a large budget compared to EU countries. The minimum price for ready-to-move-in Turkish apartments is around €100,000. However, you can acquire an investment-attractive property with less starting capital by negotiating an installment plan with the construction company. Luxury properties can be purchased from €500,000 and up. For affluent investors, interesting options are available among commercial real estate—properties for shops, restaurants, cafes, hotels, and shopping centers.
-
High profitability
The profitability of vacation real estate depends on factors such as:
- Location;
- Proximity to the beach;
- Orientation and views from the windows;
- Layout and furnishings;
- Management method.
If a professional, experienced real estate agency manages the property, profitability can significantly increase. Upon resale, profits can reach 200% per year. However, conducting such buy-sell operations requires a perfect understanding of all market nuances and readiness to invest your capital.
-
Ease of property management
In the Republic of Turkey, both owners and management companies can participate in property management. Major real estate agencies offer after-sales services, allowing foreign citizens to rest easy about the state of their property while they are away from the country.
-
Favorable tax system
Taxes in Turkey are among the lowest in Europe.
VAT on property purchases is 0%, the purchase tax is only 4% of the cadastral value, and the annual tax is 0.2%.
Additionally, ownership rights (TAPU, in Turkish) to Turkish apartments can serve as grounds for obtaining residence permits and citizenship, provided certain conditions are met.
-
Excellent rental opportunities
A well-chosen property can become a stable source of income for you. Rental profits, depending on apartment characteristics and the season, can amount to around 5-10% per year. Implementing a profitable rental investment scheme in the Republic of Turkey is straightforward if you have the support of a management company.
14. Resale potential
Investing in Turkish real estate from the ground up, that is, at the foundation stage, guarantees significant savings and profit from resale. Prices for apartments at the beginning of construction are 20-30% lower than upon commissioning the building.
Turkish real estate is constantly increasing in value, ensuring profit, including upon the sale of secondary properties. Today, owners who bought apartments in good neighborhoods 4-5 years ago are selling them for 50% more. According to all forecasts, the price per square meter will steadily rise.
15. Optimistic expert forecasts
Many experts, based on the current situation, believe that the housing market in Turkey will continue to develop actively, and purchasing houses and apartments in Mediterranean resorts will remain a reliable way to preserve and increase capital.
Invest in Turkish real estate!
