At Bosphorus view, we get a lot of questions. In our buyer guide, we hope to provide you the answers to your most common queries. We’ve compiled all the necessary information and guidance to help you make an informed decision about life in Turkey, purchasing real estate, legal matters, Turkey’s investment climate and many other relevant subjects.
Why invest in properties in Turkey
Turkey’s economy has gone from strength to strength and Turkey is now one of the world’s top emerging economies. Thanks to stable inflation rates, favourable lending rates, a high GDP and a young, property-hungry population, investor confidence is at an all time high.
Turkish Property Investment
Turkey, officially known as the Republic of Turkey, is a transcontinental country located between Asia and Europe. It has its capital city at Ankara whilst the largest city is Istanbul. With a population of approximately 76 million as at 2012, consisting of mainly young & upwardly mobile population, makes it an ideal country for investors who want to plough money in the country’s fast developing real estate industry.
Turkey covers a very large area of about 783,562.38 km² which again means there is a lot of potential for development. In the last decade, the Turkish real estate sector has grown tremendously.
Istanbul has been touted by PWC and Deloitte Consulting to be the most attractive city for real estate investment in Europe while Turkey overall is ranked 3rd most lucrative country for investment in real estate globally. The increase and appetite for foreign investors in real estate has been motivated by the potential of Turkey’s EU membership. This has accelerated holiday home owners and investors around the world to purchase properties in Turkey. More important is also the legislative amendments that have been done to several laws including the property title registry law, the mortgage law, residency and the redrafting of tax laws which all directly affect how overseas investors can buy and develop properties in Turkey. These amendments are believed to have stimulated the competitiveness of the Turkish real estate sector.
Dynamic demographic factors and good economic figures have enabled Turkey to increasingly become the choice for foreign investors interested in setting up businesses and purchasing real estate. There has been an increase in demand for homes and offices in the recent years as more global companies and foreigners demand commercial and residential real estate.
SWOT Analysis for Turkey Real Estate
– Turkey is the leading investment country in Europe for GDP growth projections.
– Strong financial and banking regulations.
– Construction companies with global reputation.
– Access to mortgage facilities.
– Government adding more buyer incentives each year.
– Acquiring land is difficult and obtaining construction permits is not straight forward.
– High number of old type of housing which cannot qualify for mortgage facilities.
– High internal demand for residential housing and commercial space.
– Many slum upgrade projects in major cities to create opportunity for new housing.
– Regulations on earthquake and natural disasters have increased the need for quality construction.
– Increased tourists inflow and investors have made opportunities for office space and residential property.
Investment Guide to Turkey
Turkey is one of the fastest growing economies in the world. If you are a real estate investor, you may not want to miss the chance to be part of this economic giant and transcontinental country. High economic expansion, millions of tourist per year visiting the country and an investment environment that is friendly and viable are some of the key points to look at in Turkey.
Why would you invest in real estate in Turkey?
High and dynamic population – Turkey has a high population of about 76 million with over 60% comprising the young generation. The younger generation are better placed to set up businesses and support the expansion of Turkish economy. In addition, changing customs and traditions in the country mean that younger people are leaving parental homes earlier and setting up on their own. This increases the need for quality accommodation and housing. Turkish central real estate association has estimated that there is a shortfall of around 2.5 million properties in Turkey.
Low taxes and incentives – Any investor would want to invest in a country that offers incentives in various sectors. Turkey offers incentives on various areas while has reduced corporate tax from 33% to 20%.
Large Domestic market – Turkey has a very big market locally because of the high and learned population. Tourist arrivals reached 30 million in 2015. This creates an ideal investment opportunity for real estate developers.
Good infrastructure – well developed air, land and sea transport, advanced energy sector and highly developed technological infrastructure in transportation and communication puts Turkey well ahead of other emerging as the place to invest safely and profitably.
How to buy property in Turkey?
Faced with growing numbers of overseas buyers, the Turkish government has recently taken steps to make the Turkish property buying process faster and easier. Although it’s easier than ever before to buy a home in Turkey, it’s best to be armed with the latest up-to-date information to guide you through the steps you’ll need to take to buy property in an unfamiliar country. Our step-by-step guide to buying real estate in Turkey lays out exactly what you’ll need to do to ensure your purchase goes without a hitch.
A step-by-step guide allowing foreign nationals buying property in Turkey to do so as smoothly and safely as possible.
Buying an overseas property is for most people more of a lifestyle choice than just bricks and mortar, so the agent you are dealing with ought to understand and appreciate the lifestyle you are seeking to attain. If they can’t, then they will not have much chance of guiding you toward the right area and type of investment. Remember, Turkey is a huge country, larger than France, and four times the size of the UK, so there are big differences from region to region in terms of climate, culture and landscape. Only a knowledgeable and empathetic agent will be able to consult you in the right direction.
Talk to your property agent and build a good rapport
Some of us are shy of picking up the phone and talking to property agents. We do not like being “sold to” and we try to avoid putting ourselves in circumstances where we might be confronted by a pushy salesperson. However, if you can’t talk openly and at length with your agent, then your agent will not be able to understand your needs and preferences. Without fully understanding your requirements your agent will find it difficult to source the right property for you. So, once you feel you have found a genuine agent who is able to assist, then invest your time in talking to them at some length. Get to know them and let them get to know you. This is key to establish a rapport which will in turn help and motivate your agent to do their utmost for you. This rapport will follow you all the way to Turkey and hopefully well after you have successfully purchased your new home in Turkey.
At Bosphorus View, we put much importance to building a strong rapport with our clients. We don’t have a pitch in front of us or a pre-defined property that we want to sell to you. We listen to you first and then together we decide where to look and what type of property would be most suitable for you. We like to understand your requirements and search in depth for unique and special homes that will meet the same. Therefore, you need to help us help you find that special place in Turkey.
Go on a Turkey property inspection trip
A professionally organised inspection trip with a reputable company will help you in your property search to a great extent. We recommend at least 1 day dedicated to see various homes with us, sorting our paperwork, and getting accustomed with local scenery and lifestyle. Avoid inspection trips offered by branded developers: you will only see properties sold by this specific developer, which means you’ll miss out of a huge number of properties in the region.
Negotiation on the price and terms of purchase
Whether you are buying a retirement villa in Turkey or an investment apartment, at Property Turkey we will always negotiate on your behalf to ensure the best possible price and terms are achieved. Our extensive networks and contacts mean we can secure significant discounts from developers as well as private sellers. This is our job, as your consultants representing you, we will do our utmost to secure the best deal possible for you. When budgeting for your purchase, keep in mind that although much lower than Spain, France and Italy, there are incidental costs associated with purchasing property in Turkey. Take these into account so you can budget accurately.
Reserve the property and freeze its price
Once you have found your dream home, villa, or apartment in Turkey, we will reserve the property for you so we can proceed with the purchase process. The amount is given to the seller as a reservation deposit and is deducted from the agreed purchase price.
Receiving of title deed (TAPU)
The final step to complete your real estate purchase in Turkey is registering your TAPU (or title deed). Once we have secured all paperwork and both sides have carried out their contractual obligations – your home will be registered to your name and you will receive the title deed (TAPU) to your new home in Turkey.
That completes our easy guide to buying a property in Turkey. We are always happy to chat with you over the phone or email about your property requirements and any questions you may have regarding your purchase of real estate in Turkey. If you have any questions you may need answering, don’t hesitate to contact us at any time.