Pros and Cons of buying a property in Turkey

Is buying property in Turkey a good investment?: I don’t know how much you know Turkey and towns of Turkey to buy property as future investment. Buying property allways lucrative in Turkey but if you dont just plan to buy and sell in future but you also plan to hire and earn more then be careful about to whom you would hire your property. In Turkey tenants don’t pay their rents on time. Here are the pros and cons of buying a property in Turkey. 

The Cons of Buying a Property in Turkey

Strong currency: while the lira is currently riding at about the running average, for several months it has been very strong. When the lira gains 15 kurus (Turkish equivalent of the penny) against the pound, Turkish property becomes almost 10% more expensive. With the UK economy growth at around 2% year on year, and Turkish economy growing at around 11%, a strong Lira is pretty much a certainty for the foreseeable future.

Mortgages on Completed Property Only: We often hear about how Turkish banks weathered the financial storm, because they were reformed after Turkey’s 2001 economic crash, as a good thing. But these reforms made lending a lot more cautious. Now banks will very rarely lend on anything but built property, with only very few off plan opportunities offering finance, depending on the developer. However, in most cases it is best to raise finance in your own country for an overseas property purchase, so this is not a huge problem.

EU Membership a Long Way Off: While this is far from being as big a deal as it used to be many potential buyers will always go for countries within the EU. While this buyer is usually looking for an established market like Spain or Italy anyway, EU membership for any country is one huge step towards at least appearing established, and always increases property sales.

The Pros of Buying Property in Turkey

Strong Growth: As was mentioned above the Turkish economy has powered out of recession into 11% growth in the 1st half of the year. This is increasing the affluence of the country’s population, and along with high liquidity and low interest rates, is stirring in them demand for houses and second houses to buy rent, which of course is meeting with massively increasing demand from foreigners, to put severe upward pressure on prices.

Excellent Value for Money: Turkey property prices haven’t caught up with the rest of the country’s strengths, and are still some of the cheapest in Europe and the World. Those who can’t afford to buy on the continental Mediterranean Coast find property in Antalya>, on Turkey’s Med coast from £33k for a 1 bedroom apartment walking distance from the sea, 15 mins from the airport, and with a 5% guaranteed rental yield for the first 2 years. Unbeatable value for money.

Solid/Good Rental Yields: Global Property Guide recently identified that Turkish property is seriously undervalued. According to their detailed research per square meter prices in Istanbul average 2,386EUR, compared to 6,622EUR in Athens, 5,690EUR in Helsinki, and 11,851 in Moscow. Undervalued property indicates strong rental yields. According to the same research report, average rental yields in Istanbul are 6.10%, which is above the global average and within the bounds of a good investment destination. From our reports we also know that 6% is about average for the rest of Turkey as well.

Those are simply the main pros, there are many more when you refine your property search to the region and city level. For example, accessibility: take Antalya mentioned above, which has one of the best served airports in Turkey, with many new flights added in the last 18 months even during an international travel downturn, and excellent coverage by UK low cost airlines.

Well, I hope I have given you an overview of the decision making process, I am sure that you, knowing why and where you are considering buying can come up with a bigger list.

Julian Walker – Spot Blue Overseas Property

FAQS about Is buying property in Turkey a good investment?

1.Does buying property in turkey give you residency? Buy property in turkey and get citizenship!

Turkish citizenship by investment: Turkey offers a citizenship-by-investment program that allows foreign nationals to acquire Turkish citizenship through various investment options, including real estate investment. However, this program is subject to change, and it’s essential to check for the latest updates and requirements from official sources.

Generally, purchasing property in Turkey may grant you residency, but the type of residency and the conditions can vary. Turkey offers different types of residence permits, such as short-term and long-term permits, and the requirements may differ based on factors like the purpose of your stay and the type of property you invest in.

2.Turkish citizenship requirements

General requirements for obtaining Turkish citizenship through investment includes:

1. Real Estate Investment: Foreigners could qualify for Turkish citizenship by making a significant real estate investment. The minimum investment amount could vary, and the property purchased must be held for a certain period.

2. Bank Deposit: Making a significant deposit in a Turkish bank was another option. The deposit amount and conditions could change.

3. Job Creation: Creating jobs for Turkish citizens by establishing a business or investing in an existing one could also be considered for citizenship.

4. Fixed Capital Investment: Making a fixed capital investment in Turkey, such as through a business venture, could be a qualifying factor.

5. Government Bonds or Funds: Investing in Turkish government bonds or funds might be an option for obtaining citizenship.

6. No Criminal Record: Applicants typically needed to have a clean criminal record.

7. Health Insurance: Some investment options required applicants to have valid health insurance.

3.Turkish citizenship by marriage

Turkey allows foreign individuals to apply for Turkish citizenship based on marriage to a Turkish citizen. The process and requirements for obtaining Turkish citizenship through marriage generally involve the following steps:

1. Marriage: The foreign individual must be legally married to a Turkish citizen.

2. Residency: The couple is usually required to reside together in Turkey for a specified period before applying for citizenship. The required residency period may vary, so it’s important to check the latest regulations.

3. Language Proficiency: Some authorities may require proof of Turkish language proficiency, often assessed through language exams. This requirement may vary, and not all applicants may need to undergo language testing.

4. Integration and Cultural Adaptation: Applicants may be asked to demonstrate integration into Turkish society and familiarity with Turkish culture.

5. Background Check: A background check is typically conducted to ensure that the foreign spouse has a clean criminal record.

6. Application Process: The couple needs to submit the necessary documents and application forms to the relevant authorities.

4.Turkish citizenship by marriage documents 

Marriage Certificate, Passport, Residence Permit, Turkish Identity Card of the Turkish Spouse,Turkish Family Registry (Nüfus Kayıt Örneği),  Health InsuranceProof of Turkish Language Proficiency, Criminal Record Check

5.Best places to invest in Turkey

Istanbul, Ankara, Izmir, Antalya, Bursa, Trabzon, Cappadocia

6.Investment in Turkish Lira

Investing in the Turkish lira involves considerations of currency exchange rates and economic stability. It’s advisable to monitor economic indicators before making currency-based investments.

7.Business Investment in Turkey

Turkey encourages business investments through incentives, a large consumer market, and strategic geographical location as a bridge between Europe and Asia.

8.Tourism Investment in Turkey

Tourism sectorin Turkey presents opportunities for investments in hotels, resorts, and related infrastructure, especially in popular tourist destinations like Antalya and Cappadocia.

9.Economic Outlook for Investment in Turkey

Turkey’s economic outlook is changing, influenced by factors like political stability, inflation rates, and global economic conditions. It’s important to stay updated on economic indicators.

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