Buying property in Turkey as a foreigner has become an increasingly popular investment in recent years. With its beautiful Mediterranean beaches, warm climate, fascinating history and culture, as well as a thriving economy, it’s no wonder that Turkey has emerged as a top destination for real estate buyers from overseas.
If you’re considering purchasing property in Turkey, it helps to understand the many benefits and advantages the country offers. Here are some of the top reasons to invest in real estate in Turkey as an international property buyer:
Affordable Prices
One of the main draws of buying property in Turkey is the relatively affordable prices compared to other European and Middle Eastern countries. Following the currency crisis in 2018-2019, prices for real estate dropped dramatically, making it a buyers’ market. Though the Turkish economy has stabilized recently, property prices remain below their pre-crisis levels. Even in bustling Istanbul, it’s possible to find apartments and villas that are far cheaper than comparable properties in cities like London or Paris.
High Rental Income Potential
Not only are properties in Turkey reasonably priced, but you can also expect to generate sizeable rental yields from investment properties in popular destinations. Cities like Istanbul, Antalya, Bodrum and Fethiye attract millions of tourists annually, keeping demand high for vacation rentals as well as long-term rentals year-round. The rental market is strong enough that many foreign investors can cover their mortgage payments simply from the rental income alone.
Simplified Process for Foreigners
The process for international buyers to purchase property in Turkey is straightforward and streamlined. You are allowed to buy real estate in Turkey regardless of your nationality or country of origin. The transaction process is facilitated by a title deed system, where the buyer and seller finalize the sale at the land registry office. There is no need for lawyers or notaries to get involved. The only restriction is that foreign buyers cannot purchase more than 30 hectares of land.
Low Property Taxes
The taxes and fees associated with owning property in Turkey are lower than those of many other European and North American countries. The VAT (value-added tax) was reduced from 18% to 1% for foreigners purchasing property in Turkey. Property taxes are also very low at just 0.1% of the purchase price each year. This keeps the cost of holding and maintaining property to a minimum.
Visa Possibilities
Buying property in Turkey may make it easier to obtain residency or citizenship in the country. While having a property does not automatically grant you a visa or passport, it can provide a means for achieving extended stays in Turkey. The government offers short-term residence permits for home owners, as well as paths to temporary or permanent citizenship through investment.
Appreciating Property Values
Experts forecast that property values will rise significantly across Turkey in the coming years, thanks to major infrastructure and development projects that are modernizing cities and transportation. Istanbul’s housing market is expected to outperform those of other European capitals. Investing now means taking advantage of today’s lower prices before they escalate.
Unique Lifestyle
For many foreign buyers, the promise of an idyllic lifestyle along Turkey’s beautiful coastline or in historic places like Cappadocia is the motivation behind investing in Turkish real estate. The country’s Mediterranean climate, delectable cuisine, world-class amenities and dynamic culture make Turkey a delightful place to own a second home or relocate.
Strategic Location
Turkey enjoys a strategic location at the intersection between Europe and Asia. Major airlines operate flights to Istanbul’s international airport from destinations across the globe, while ports like Izmir have helped establish Turkey as a trading hub. For investors, Turkey’s location provides appealing access to markets across multiple regions.
Golden Visa Program
In recent years, Turkey has initiated a Golden Visa program similar to schemes in other countries like Portugal and Greece. The Turkish CBI (Citizenship by Investment) program enables foreign nationals to gain full Turkish citizenship in exchange for an investment in property and/or government bonds. The investment threshold starts at US$250,000.
Overall, Turkey offers an exciting opportunity for foreigners aiming to buy vacation homes, investment properties or primary residences abroad. Considering the financial incentives, straightforward buying process, and exceptional lifestyle on offer, it’s easy to appreciate the growing enthusiasm towards the Turkish real estate market. By understanding the key benefits, international property seekers can confidently consider Turkey for their next international purchase.
