Buying Investment Property in Turkey: Conditions, Advantages, Statistics

Buying Investment Property in Turkey: Conditions, Advantages, Statistics

The Opportunity To Invest in Real Estate in Turkey Profitably and Safely


Take advantage of affordable living costs, excellent climatic conditions, and the opportunity to invest in real estate in Turkey profitably and safely.

 

Buying investment property in Turkey is becoming increasingly popular among international investors due to its mild climate, beautiful beaches, diverse properties, and profitable investment opportunities. In this blog post, we will consider the conditions for buying real estate for investment, and what advantages such an investment has, and we will also give some statistics and figures about real estate prices in Turkey and their profitability, which will help you get a general idea about this market. In addition to that, we will also consider the regional options in Turkey for profitable real estate investments.

Why Invest in Turkish Real Estate?

Before we get into the terms and conditions of buying investment property in Turkey, let's take a look at the question "Why invest in Turkish real estate?"!

There are many reasons to invest in Turkish real estate. One of them is the favorable climate with more than 250 days of sunshine per year, unique historical monuments, and affordable housing. Turkey is also a great option for families, as large international communities continue to develop in the cities and there are many international schools in Russian, English, Arabic, and other languages. In addition, Turkey's strong medical industry attracts international investors not only for residency but also for medical tourism. State-of-the-art equipment and highly qualified staff in the country's hospitals ensure that visitors from any country in the world can receive first-class medical care.

 

Benefits of Investing in Real Estate in Turkey

 

  • Stable real estate market: Turkey's real estate market is growing steadily, making it a favorite among investors. Due to the constant demand from international investors, the market remains active and offers a variety of investment options. 

 

  •  Advantageous location and tourism potential: Turkey's location at the crossroads of Europe and Asia makes it a strategically prestigious point for transportation and trade links. Turkey is also one of the world's most popular tourist destinations thanks to its mild climate, beautiful beaches, historical sites, and diverse culture. This contributes to the growing demand for short and long-term property rentals. 

 

  • Developed infrastructure and accessibility: Turkey has a well-developed infrastructure that includes modern roads, airports, and ports. This provides easy access to different parts of the country, which is an important factor for real estate investments. In addition, Turkey has a vibrant public and social services sector, which contributes to the quality of life of the population and the attractiveness of the regions for investment. 

 

  • Possibility to obtain a residence permit and citizenship: Foreign investors who purchase real estate in Turkey can benefit from the possibility of obtaining a residence permit. Under certain conditions, such as a real estate investment of over USD 400,000, investors may qualify for Turkish citizenship. You can learn about effective ways to obtain Turkish citizenship by following this link.

What Are The Conditions For Buying Investment Property in Turkey?

Turkish legislation allows international investors to buy real estate in Turkey, but there are some restrictions. International investors are not allowed to buy real estate of strategic importance or located in military zones. Before buying, it is important to make sure that the selected property does not fall under these restrictions, for this purpose, it is advisable to seek the advice of experienced professionals. Realtor Global's professional team will be happy to provide you with all the help you need in these matters!

 

You can find more detailed information about the conditions for buying property in Turkey and the required documents in our other blog post.

 

Moreover, investments in Turkish real estate offer various opportunities for foreign investors. The choice of a suitable type of investment depends on the investor's individual goals, preferences, and the level of risk they are willing to accept. Here are some of the main options for investing in Turkish real estate:

  • Short-term real estate investments in Turkey can generate high returns due to the low prices of properties under construction. With the right choice of project and location, it is possible to make a significant profit when selling after construction is completed.

 

  •  Investments in commercial properties such as offices, shops, restaurants, and hotels can generate a stable and passive income in the form of rent. It is important to choose the right region and specific area of interest for investment, as well as to take into account the specifics of the local market and legislation.

 

  •  Investments in the construction of large residential complexes, hotels, and resorts may require significant capital investment, but if the project is successful, it can bring high returns and a stable passive income. It is important to carefully research the market and work with reliable partners to minimize risks.

 

  • Luxury or affordable real estate: The choice between luxury and economic real estate investments depends on the investment objectives and the risks an investor is willing to take. Luxury real estate tends to offer higher returns and higher asset values but also requires a larger investment. Affordable real estate can offer lower returns but also has a lower level of risk.

How Much Income Can Real Estate in Turkey Generate?

Real estate returns in Turkey can vary greatly depending on property type, location, condition, and market demand. For example, residential rents in major cities can average around 6-8% of the property value per annum, while the return on investing in project properties can be more than 20%. In addition, the difference in housing costs between the groundbreaking phase and when the property is delivered can be up to 40%. Additional costs for taxes, utilities, and property maintenance should also be taken into account. In any case, real estate income in Turkey can be very attractive for investors.

Best Cities in Turkey For Profitable Real Estate Investments

Istanbul

As the cultural and economic capital of Turkey, Istanbul is one of the most popular destinations for real estate investments. Properties of various price categories and types can be found here, from budget apartments to luxury villas and commercial properties.

 

Real estate in Istanbul is an attractive investment for buyers from all over the world. The city has a rich culture and history and is one of the most vibrant and interesting cities in the world. Istanbul has a thriving real estate market with many options for those looking to buy property at a good price.

 

Antalya

An investment in Antalya real estate will always be profitable because almost every street in this city leads to the sea with magnificent beaches. This is a big plus for tourists and those who want to live and work in this beautiful city. Therefore, the real estate market in Antalya always has great offers and is wildly in demand.

 

Antalya is a holiday region and if you consider that the property is on the first coastline or even a little further away, the annual rental income can be between 10% and 12% per annum. Quite profitable!

Alanya

Alanya offers a wide range of investment opportunities for both local and international investors. Investing in real estate is proving itself as one of the safest investment instruments and a way to generate passive income. The first reason international buyers are attracted to real estate in Alanya is the excellent maritime climate, the mild winter, the abundance of fresh fruits and vegetables, and affordable real estate.

Housing prices in the central areas are 30-40% more expensive than in the outer areas. The most popular and therefore the most expensive are Oba, Mahmutlar, Alanya Center, and Cleopatra. The determining factors in price formation are the floor, number of rooms, proximity to the beach and tourist attractions, and the availability of additional facilities in the area.

 

Housing prices in the central areas are 30-40% more expensive than in the outer areas. The most popular and therefore the most expensive are Oba, Mahmutlar, Alanya Center, and Cleopatra. The determining factors in price formation are the floor, number of rooms, proximity to the beach and tourist attractions, and the availability of additional facilities in the area.

Average property values in these regions:

The average property price in Turkey varies by region and property type. Below are indicative figures as of the end of March 2023.

 

Istanbul: As of the end of March 2023, real estate prices in Istanbul have increased by 144.27% year-on-year.  At the same time, the average price of a 118-square-meter property is around 3.2 million Turkish Liras. The average price per square meter of properties for sale in Istanbul is 27,000 Turkish Liras by the end of March 2023. The payback period, i.e. the amortization period, of houses for sale with the same characteristics is approximately 17 years.

 

Antalya: By the end of March 2023, real estate prices in Antalya increased by 163.80% compared to last year. At the same time, the average price of properties for sale up to 120 square meters is around 3 million Turkish Liras.  Also, as of the end of March 2023, the average price per square meter of properties in Antalya is around 25,000 Turkish Liras. The average return on investment, i.e. depreciation, of houses for sale with the same characteristics is approximately 16 years.

 

Alanya: As of the end of March 2023, the prices of properties for sale in Alanya are increasing by 149.54% compared to last year. The average price of a property with an average area of 110 square meters is approximately 3.5 million Turkish Liras. The average price per square meter of such property in Alanya is approximately 33 thousand Turkish Liras at the end of March 2023. The payback period, i.e. amortization, of houses for sale with the same characteristics, is about 20 years.

Turkey not only fulfills your expectations as an investment destination but also improves your quality of life. Realtor Global can help you get a property at an affordable price, complete all the necessary paperwork and get to know the country and its social environment. We guarantee not only full support of the deal but also legal transparency.  

Invest in real estate in Turkey with Realtor Global!

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