Are you prepared to invest in Turkey's real estate but unsure of where to begin as a foreigner? This blog makes the process of buying real estate in Turkey as a foreigner so much easier and smoother. We equip you with the knowledge to shift from being an interested buyer to becoming a proud owner of a property in Turkey through the help of translated legal jargon, the workings of the marketplace, and the process of ownership.
Understanding the Turkish Real Estate Industry
Turkey's property market is currently experiencing a boom. Key facts about the Turkish real estate market are as under.
Property prices in cities like Sakarya, Kocaeli, and Trabzon have shown an unbelievable growth of 132.84%. From 2013 to 2022, more than one million transactions of houses took place every year. Rising investments to make a place in immovable properties in this highly diversified country.
These factors have drawn foreign investors to the Turkish real estate industry. The position is advantageous for Turkey since it offers relatively cheap property and an attractive Mediterranean lifestyle. The country's attractiveness as a destination for investment is further amplified by its beautiful climate, natural views, and ancient landmarks.
Turkey is an attractive alternative for foreign investors in that it also features ownership costs that are significantly lower compared to many European countries, such as taxes on properties and maintenance.
Commercial Real Estate
Turkey has good commercial real estate options if you're looking to diversify your investment portfolio. Property and specific rights related to it, may be purchased by foreign commercial firms as long as the purchases are made in line with the stated business scope specified in the articles of organization.
The Turkish commercial real estate market is full of investment opportunities, ranging from office buildings and retail stores to lodging facilities like hotels.
Property Valuations
Turkey's real estate market has experienced tremendous price increases in recent years. In April 2023, for example, the average price of a residential property in Istanbul increased by 120%, to 3,252,906 TRY ($120,340). In a similar vein, the average residential property in Ankara's real estate market had a 138% gain during the same period, valued at 1,770,860 TRY ($65,512).
There are several reasons for this increase in real estate values. Land costs have increased by two to three times in recent years due to a decline in the amount of available land for construction, especially in the Mediterranean resort areas.
In addition, an unparalleled demand for real estate in 2022 resulted in a scarcity of available housing in areas such as Antalya, which in turn drove up property values.
For one considering real estate purchases in Turkey, these trends are important to pay heed to. It gives insight into the possible return from your real estate investment and helps you understand the state of the market in the current scenario.
Finding a Home in Turkey
Finding the ideal house in Turkey is an exciting trip. First of all, setting goals is the very first step in the process. Are you trying to find a growth-oriented investment? Do you have any interest in renting? Or do you intend to set up shop somewhere long-term? You can focus more clearly and speed up your property search by setting a budget and defining your objectives before starting.
Once you have an idea of what you are looking for, you can start researching the trends of the Turkish property market and measuring your options. To make good comparisons inspect multiple properties. Selecting the right location also becomes pretty important; consider if you want to be close to the city center, beach, or whatever else might come in handy in your lifestyle.
Can Arabs buy property in Turkey?
Turkey allows Arabs to purchase real estate. Foreign nationals, including Arabs, are permitted to buy real estate in Turkey, subject to specific limitations in military and critical zones.
Arab investors have found Turkey to be a very appealing destination, particularly when the Turkish government streamlined its real estate regulations a few years ago.
Arab purchasers have been drawn to Turkey by the Citizenship by Investment program, which allows foreigners to get Turkish citizenship in exchange for making a minimum real estate investment.
