Turkish Property Buying Guide: How to Buy Property in Türkiye
Turkey has recently been internationally renamed as "Türkiye". It is a transcontinental country located between Europe and Asia. Africa lies on the other side of the Mediterranean Sea. Istanbul is the only city in the world situated on two continents. Turkey's central location makes it a transport hub where the main continents—Asia, Europe, and Africa—act as a bridge country. Istanbul is directly connected to 284 airports in 132 different countries. No other airline offers such a diverse range of destinations as Turkish Airlines does.
Turkey is one of the world's largest economies with a GDP of 1 trillion USD, making it the 19th largest economy in the world. With a young population of 84 million, there is a significant demand for housing. Turkey is the 4th most visited tourist destination in the world, with 51 million visitors in 2022. These numbers indicate a strong demand for real estate investments.
The Real Estate Market in Turkey
Turkey, known for its rich history and strategic location, has been a hub for foreign investors for many years. The residential sector in Turkey has seen a surge, especially with foreign buyers. In 2022, residential sales to foreigners reached 67,490 among total house sales of 1.25 million units per year. Istanbul, being the cultural and economic capital, leads the chart, followed by tourist destinations like Antalya and Izmir. The ease of property ownership for foreigners and the potential for high rental yields have made residential properties in Turkey a lucrative investment.
Here's a deeper dive into the factors driving the real estate market in Turkey:
Affordable Property Options
Compared to many European countries, the depreciation of the Turkish lira has made properties in Turkey more affordable for foreign investors. This currency depreciation, combined with the potential for profit in a recovering market, has attracted many foreign investors.
Tourism and Rental Income
Turkey, with its beautiful coastlines, historical sites, and vibrant cities, is a popular tourist destination. For many foreign investors, purchasing a property in Turkey serves a dual purpose: a low-cost vacation home and a potential source of rental income. Property management companies generate rental income through Airbnb and Booking platforms.
Turkish Citizenship by Real Estate Investment
Turkey offers a residency program for foreigners who invest in Turkish real estate. This has been a significant factor in attracting foreign buyers, especially from countries like Russia, Iran, Iraq, and Germany.
Strategic Location and Travel Benefits
Turkey's strategic location, bridging Europe and Asia, offers unique travel advantages. Moreover, its proximity to various European and Middle Eastern countries makes it a preferred choice for many investors. The allure of Turkey's rich history, combined with its modern amenities, attracts many from the EU and the US. For them, it's not just about the property but also the experience of living in a country that offers a blend of the East and the West. Turkey's cultural and geographical proximity to countries like Russia, Iran, and Iraq makes it a preferred destination for real estate investment. The ease of travel and the familiarity of the region play a significant role.
Popular Property Destinations in Turkey
Turkey offers several popular property destinations that attract foreigners from around the world. Each destination has its own unique charm, amenities, and reasons why foreigners choose to buy property there. Let's explore the popular property destinations in Turkey and the factors that make them appealing to foreign buyers.
- Antalya, located along the stunning Turquoise Coast, is a sought-after destination for property buyers, particularly from Russia, Germany, and the UK.
- The city's picturesque beaches, ancient ruins, and vibrant city life make it a desirable location for both investment and residential purposes.
- Foreign buyers are attracted to Antalya for its favorable investment opportunities, well-developed infrastructure, and wide range of leisure activities.
- The availability of various property types, including luxurious seaside villas, modern apartments, and holiday homes, caters to different preferences and budgets.
- Istanbul, Turkey's cultural and economic capital, is a melting pot of history, tradition, and modernity. It attracts buyers from around the world.
- Foreigners are captivated by Istanbul's rich historical heritage, vibrant neighborhoods, world-class shopping districts, and thriving culinary scene.
- The city offers diverse property options, including luxurious apartments with breathtaking views, restored historic buildings with unique architectural character, and waterfront residences.
- Investors from the Middle East, Europe, and Gulf countries are particularly interested in Istanbul's real estate market, considering it a prime location for capital appreciation and rental income.
- Ankara, Turkey's capital city, offers a cosmopolitan lifestyle and a thriving real estate market.
- Foreign buyers are attracted to Ankara for its prestigious educational institutions, booming economy, and modern amenities.
- The city provides a range of property options, including modern apartments, family homes, and gated communities.
- Foreign investors, including professionals and students, choose Ankara for its investment potential, rental income opportunities, and access to amenities and services.
- Alanya, situated on the southern coast of Turkey, offers a combination of natural beauty, affordability, and a relaxed Mediterranean lifestyle.
- Foreign buyers, especially those from Northern Europe, are enticed by Alanya's affordable property prices, vibrant expat community, and the potential for year-round rental income.
- Property options in Alanya include apartments, villas, and beachfront properties, catering to different budgets and preferences.
Muğla & Bodrum & Fethiye
- Muğla, located in southwestern Turkey, is a region renowned for its breathtaking coastal resorts, including Bodrum, Marmaris, and Fethiye.
- Foreign buyers are captivated by Muğla's idyllic landscapes, crystal-clear waters, and relaxed Mediterranean lifestyle.
- Bodrum, in particular, appeals to wealthy investors and celebrities, offering luxurious villas, high-end properties, and upscale marinas.
- The region's popularity among tourists and the availability of a wide range of property types make it an attractive investment option.
- Trabzon, on the Black Sea coast, is gaining attention from foreign buyers, particularly from the Middle East and Gulf countries.
- The city's natural beauty, including lush green landscapes and stunning sea views, attracts investors looking for peaceful retreats.
- The real estate market in Trabzon offers a variety of options, from apartments to villas, catering to different preferences.
- Mersin, located on the Mediterranean coast, is known for its beautiful beaches, historical sites, and bustling port. It is expected to be a popular touristic destination after Mersin Regional Airport in Tarsus, competing with Antalya.
- Foreign buyers, especially from the Middle East and Gulf countries, are interested in Mersin's real estate market. There is huge demand from the Russian and Ukranian markets as it offers relatively cheap properties.
- The city's affordable property prices and potential for economic growth make it an attractive destination for investment.
- Yalova, situated near Istanbul, offers a tranquil escape with its natural beauty and thermal springs. There is a direct ferry connection between Yenikapı and Pendik. This easy connection makes Yalova an Istanbul sub town.
- Foreign buyers, particularly from the Gulf countries, are drawn to Yalova's peaceful environment and proximity to Istanbul.
- The real estate market in Yalova provides options such as villas, apartments, and land suitable for development. The property prices are much more affordable when you compare them with other Istanbul suburbs.
- Bursa, known as the "Green City" of Turkey, offers a combination of natural beauty, historical sites, and a growing economy.
- Foreign buyers, including professionals and families, are interested in Bursa's real estate market due to its affordable property prices and high quality of life.
- The city offers a variety of property types, ranging from apartments in modern complexes to spacious villas with mountain views.
- İzmir, Turkey's third-largest city, boasts a thriving real estate market.
- Foreign buyers are attracted to İzmir's coastal location, vibrant city life, and rich cultural heritage.
- The city offers a range of property options, including apartments in modern complexes, historic houses in the city center, and seaside residences along the Aegean coast.
How to Buy Property in Turkey
Choosing the right real estate consultant is essential when you're planning to invest in the Turkish property market. A trustworthy and professional consultant will streamline the entire buying process, ensuring you make a wise investment decision. We have 20 offices in 5 countries. TEKCE is the leading and the most corporate real estate company in Turkey. We’re committed to offering you the most suitable properties with the best price guarantee. Our team is comprised of local real estate experts. All real estate sales are initiated through our company lawyers. In short, TEKCE means real estate.
Once we find your ideal property in Turkey, the sales process with TEKCE is systematic:
- Our in-house attorney conducts due diligence on the property, verifying its authenticity and ownership details.
- We then move forward with the reservation deposit payment, which secures the property and also signifies your intent to purchase.
- With the deposit in place, we assist you in signing the purchase agreement, ensuring all legal paperwork is carefully prepared.
- As part of the buying process in Turkey, we help you obtain your Tax Number and open a bank account, essential for property transactions.
- Our legal team supervises the title deed transfer. At TEKCE, we recognize the importance of each phase in the property acquisition journey. Our dedicated professionals ensure every aspect is managed with utmost precision. We aim to make your property-buying experience in Turkey both simple and pleasurable.
For a detailed guide, please visit the step-by-step property purchase process in Turkey page.
Legal Aspects of Property Ownership and Registration
Most properties in Turkey are freehold, meaning the buyer owns both the property and the land it's built on. This is the highest level of ownership rights that pass to your heirs. Leasehold properties, where the buyer owns the structure but rents the land, are less prevalent.
Property ownership is recorded in the "Tapu Sicil Müdürlüğü" (Land Registry Office) in Turkey. This public registry maintains all pertinent details about a property's legal status and ownership. The Land Registry ensures legal clarity and safeguards the rights of property owners.
The registration process entails submitting essential documents to the relevant Land Registry office, including the purchase contract, notarized deeds, and any necessary permits. This registration confirms ownership and provides a clear title for the property.
The foreigners are limited to 25 thousand square meters to buy empty building lands and agricultural lands. If they purchase land in the limits, they need to develop a project within 2 years time. Foreign companies may acquire land if they plan an investment, but they need the permission of the government.
Property Financing & Mortgage in Turkey
Foreign nationals can obtain bank loans directly from Turkish banks. Typically, documentation such as proof of income, employment contracts, and tax returns is required. Additionally, a minimum deposit of 20% of the property's value is mandatory. Mortgages for non-residents often demand higher down payments, usually between 25% and 40%. Banks also seek evidence of a steady income and a valid residence permit. TEKCE agents guide you to obtain a loan from Turkish banks.
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