Authored by the expert who managed and guided the team behind the Turkey Property Pack
Everything you need to know before buying real estate is included in our Turkey Property Pack
Are you considering investing in Turkey’s real estate market? What are the legal steps, tax implications, and cultural differences you need to understand before taking the plunge? What challenges do foreign investors typically face, and how can you overcome them?
These are the questions we hear most often from foreign investors because we’re actively connected to this market. We’ve spent time working with local agents, developers, and investors, so we know what works—and what doesn’t. That’s why we’ve written this article: to provide a clear guide that answers the questions we get asked daily.
Our goal is to help you, as a foreigner, to navigate the property buying process with confidence. If you think there’s something we missed or want more details, let us know (please do!). Your input helps us refine and improve our advice for everyone.
How this content was created 🔎📝
Fact-checked and reviewed by our local expert
Laurence Rapp 🇬🇧
Sales representative at Spot Blue - International Real Estate Agency
1) Invest at least $400,000 in Turkish property to qualify for citizenship
Buying property in Turkey can qualify you for citizenship if the investment is at least $400,000.
Since 2018, a significant number of foreigners have taken advantage of this opportunity. Between 2018 and 2021, 19,630 foreigners obtained Turkish citizenship by purchasing properties. This trend is part of a broader movement, with the Turkish Statistical Institute noting that 384,519 homes have been bought by foreigners since 2012. Many of these purchases are linked to the citizenship-by-investment program.
Real estate agencies in Turkey are buzzing about the program's popularity. The Istanbul Chamber of Real Estate Commissioners and Consultants has observed that Russians, Iranians, and Iraqis are among the top buyers seeking Turkish citizenship through property investment. This influx of foreign buyers is reshaping the real estate landscape in cities like Istanbul and Antalya.
For those considering this investment, it's worth noting that the process is relatively straightforward. Once you invest the required amount, you can apply for citizenship, which offers benefits like visa-free travel to many countries. This makes Turkey an attractive option for those looking to expand their global mobility.
Moreover, the Turkish real estate market offers diverse options, from luxurious apartments in bustling Istanbul to serene villas along the Mediterranean coast. This variety caters to different tastes and investment goals, making it easier for buyers to find a property that suits their needs.
With the added incentive of citizenship, investing in Turkish real estate is not just about owning a home; it's about gaining a foothold in a country that bridges Europe and Asia. This strategic location, combined with the citizenship program, makes Turkey a compelling choice for international investors.
Sources: Global Citizen Solutions, Get Golden Visa, IMI Daily
From this video, we realize that buying property in Turkey worth $400,000 or more can qualify you for citizenship, offering significant benefits for investors.
2) Consider off-plan properties for investment, as they are often cheaper and can appreciate significantly by completion
Investing in off-plan properties can be a smart move because they are often cheaper than completed ones.
When you buy off-plan, you're getting in at a lower price, which means there's a chance for a higher return as the property value goes up. For instance, in 2023, new dwelling prices in Istanbul rose by 81.8% year-over-year, highlighting the potential for off-plan investments to appreciate significantly.
There's historical data backing this up, showing that off-plan properties tend to appreciate by the time they're completed. In 2023, new dwelling prices in Turkey surged by 91.1% from the previous year. This trend suggests that buying off-plan can lead to substantial profits.
Demand for housing in Turkey's urban areas remains strong, even if overall sales have dipped. Cities like Istanbul, Ankara, and Izmir continue to be significant markets, which means property values are likely to keep rising. This ongoing demand can further enhance the profitability of investing in off-plan properties.
Investing in these areas is not just about the numbers; it's about understanding the local market dynamics. For example, Istanbul is a bustling hub with a growing population, making it a prime spot for real estate investment. Urbanization and economic growth in these cities are key drivers of property value increases.
By getting in early with off-plan properties, you can maximize your profit potential. These investments are often cheaper upfront and can appreciate significantly by the time they're completed, offering a lucrative opportunity for savvy investors.
Sources: Global Property Guide, Property Turkey, Mordor Intelligence
We have made this infographic to give you a quick and clear snapshot of the property market in Turkey. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
3) Focus on tourist hotspots like Istanbul and Antalya for lucrative rental yields, especially during peak seasons
Buying property in Turkey's tourist hotspots like Istanbul and Antalya can be a smart investment.
In Antalya, short-term rentals are booming. A typical property is booked for 193 nights a year, with a median occupancy rate of 53%. The average daily rate is TRY1,586, leading to an annual host income of TRY301K. This shows how strong the demand is, especially during peak tourist seasons.
Istanbul also offers promising rental yields. The gross rental yields on apartments range from 2.84% to 9%, with a city average of 6.21% in Q3 2023. This is a slight increase from the previous year's average of 5.99%. Meanwhile, Antalya's average gross rental yield is 5.17%. These numbers suggest that investing in rental properties in these cities can be financially rewarding.
Tourism is a big factor in boosting rental yields. Turkey is expecting to welcome around 6.7 million Russian tourists by the end of 2024, marking a 5.7% increase from 2023. This trend is likely to continue, with plans to attract 7.3 million Russian tourists in 2025. More visitors mean more potential for lucrative rental yields.
In Istanbul, the rental market is diverse, with options ranging from luxury apartments to cozy flats. The city's vibrant culture and history attract tourists year-round, ensuring a steady demand for rentals. Meanwhile, Antalya's beautiful beaches and resorts make it a favorite among holidaymakers, driving up rental prices during the summer months.
For those considering an investment, it's worth noting that peak seasons can significantly boost your rental income. In both cities, the influx of tourists during holidays and festivals can lead to higher occupancy rates and increased rental prices.
Sources: Global Property Guide, Airbtics, Interfax
4) Avoid properties in high seismic zones unless they meet modern earthquake-resistant standards
Turkey sits on a major seismic hotspot, especially around the Anatolian Fault Zone, which includes the Marmara and Aegean regions.
These areas are known for their high earthquake risk, so it's vital to check the construction quality of any property you're eyeing. Turkey has a history of severe earthquakes, like the 1999 İzmit and 2011 Van quakes, which caused significant loss of life and property damage.
These tragic events underscore the ongoing threat to buildings that aren't built to withstand such forces. Buildings that don't meet modern standards tend to suffer the most during these quakes, leading to high casualties and economic losses.
On the flip side, properties built to modern earthquake-resistant standards have shown impressive resilience. For instance, during the 2020 Elazığ earthquake, newer constructions held up well while older ones didn't fare as well.
So, if you're considering buying property in Turkey, it's crucial to focus on areas where buildings are constructed to these modern standards. Steer clear of regions with high seismic activity unless the properties are built to withstand earthquakes.
Sources: Turkish Earthquake and Disaster Management Presidency (AFAD), Turkish Statistical Institute (TÜIK), Turkish Ministry of Environment and Urban Planning
5) Adopt a long-term investment perspective in Turkey, as the property market can be volatile
The Turkish property market is known for its volatility, so it's wise to think long-term when investing.
In recent years, property prices in Turkey have been a rollercoaster. For example, by May 2024, prices jumped by 42% nationwide. However, when you factor in inflation, the real value of these properties actually dropped by 19%. So, while it might look like prices are climbing, the actual buying power of your money is shrinking.
Historically, Turkey's property market has seen rapid price hikes followed by declines. Take 2022, when house prices soared by 161%. But after adjusting for inflation, the real value took a hit. This isn't new; between 2012 and 2016, prices shot up but then slowed due to political and economic instability, especially after the 2016 coup attempt.
Economic factors like high interest rates and inflation add to the market's unpredictability. The Central Bank raised interest rates to 50% to tackle inflation, making it pricier for locals to buy homes and cutting domestic demand. Currency swings have also scared off foreign investors, with a 46.1% drop in foreign home purchases in 2023 compared to the previous year.
Government policies have also played a part. During the pandemic, low interest rates initially boosted the housing market but also led to high inflation and economic instability. This caused a rush in real estate investments, pushing property prices up. Regional differences add another layer of complexity, with areas like Istanbul and Izmir seeing a sharp decline in home sales in 2023.
Sources: Global Property Guide, Binaryx
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6) Consider investing in eco-friendly housing in Turkey, as it’s gaining popularity among locals and expats
Eco-friendly and sustainable housing is becoming a hot trend in real estate.
In Turkey, the government is pushing for energy-efficient buildings by introducing concepts like Nearly Zero Energy Building (NZEB). By 2025, any building over 5000 m² must use at least 10% renewable energy, showing a strong commitment to sustainability. This move is part of a broader effort to reduce greenhouse gas emissions and promote greener living.
To make green building more appealing, the government offers grants covering up to 30% of project costs for energy-efficient developments. This financial support is a game-changer, making eco-friendly projects more attractive to developers. The KABEV Project, launched in 2022, is a prime example, with a budget of up to USD 200 million aimed at boosting energy efficiency in public buildings.
Homebuyers are also changing their preferences, with many now seeking properties that minimize their carbon footprint and use renewable energy. This shift is no longer just a niche interest; it's reshaping the real estate market. Listings now often highlight eco-friendly features, reflecting the growing demand for sustainable living options.
For those considering buying property in Turkey, this trend offers a unique opportunity. Investing in eco-friendly homes not only aligns with global sustainability goals but also taps into a market that's gaining momentum. As more people prioritize sustainability, properties with green features are likely to see increased demand and potentially higher resale values.
Whether you're a local or an expat, embracing this trend could mean not just a home, but a smart investment in the future. The push for sustainability is not just a passing fad; it's becoming a standard expectation in the housing market.
Sources: UNFCCC, Baker McKenzie, The Madrona Group
7) Check local rules on short-term rentals in Turkey, as some areas have restrictions if using platforms like Airbnb
In Turkey, short-term rental rules have tightened, especially in bustling cities like Istanbul.
If you're eyeing a property in Istanbul, know that there's a 100-day cap on short-term rentals. This means you can only rent out your place for tourism for up to 100 days a year. Plus, you'll need a Tourism Accommodation Rental Permit, which isn't just a formality. It requires approval from all apartment owners in your building and must align with zoning laws.
Ignoring these rules can be costly. Fines start at 100,000 Turkish Liras for a first offense and can skyrocket to 1,000,000 Turkish Liras if you keep breaking the rules. These measures aim to balance the local housing market and promote sustainable tourism.
So, if you're considering using platforms like Airbnb, it's crucial to check local regulations to avoid any surprises. Some areas have restrictions on short-term rentals, and compliance is key.
These changes reflect a broader trend in managing the impact of short-term rentals on communities. It's about ensuring that tourism doesn't disrupt local life while still allowing property owners to benefit.
Sources: Airbtics, Property Turkey, Guleryuz Avukatlık Bürosu, Weekender Management
8) Consider properties with strong internet and co-working spaces to attract digital nomads
Digital nomadism is booming, with millions of remote workers seeking new places to live and work.
These digital nomads are on the lookout for properties that offer excellent internet connectivity. Turkey is stepping up its game by investing in digital infrastructure, like undersea fiber optic cables, making it a hotspot for those who need reliable internet.
In cities like Istanbul, there's a noticeable increase in co-working spaces. These aren't just about having a desk; they provide a community and networking opportunities, which are gold for remote workers.
Investing in properties that cater to this trend could be a smart move. Think about places with strong Wi-Fi and access to co-working spaces. These features are becoming must-haves for digital nomads.
Turkey's appeal doesn't stop at connectivity. The country's vibrant culture and affordable living costs make it even more attractive to this growing community.
So, if you're considering buying property, look for areas that are popular among digital nomads. This could mean a steady stream of potential tenants or buyers in the future.
Sources: Pumble, Revistas RCAAP, Daily Sabah
In this video, we see how Turkey's new digital nomad visa program highlights the country's attractiveness for remote workers, emphasizing properties with strong internet and co-working spaces.
9) Look for undervalued properties in gentrifying neighborhoods for potential growth
The Turkish housing market has been on the rise, but not all areas are experiencing the same growth.
In well-established neighborhoods, property prices have soared, pushing buyers to explore more affordable, emerging areas. These up-and-coming neighborhoods are catching attention due to significant government investment in infrastructure, especially in regions impacted by the 2023 earthquake.
This investment is not just about rebuilding; it's about transforming these areas into vibrant communities. As a result, property values in these regions are expected to climb, making them prime spots for gentrification.
With gentrification comes a wave of new businesses and amenities, turning these neighborhoods into desirable locations for both residents and investors. The post-earthquake reconstruction has sparked a boom in new construction and business openings, which can further drive up property values.
For those looking to invest, these areas offer a unique opportunity. You can often find undervalued properties in neighborhoods on the brink of transformation, where future growth is almost certain.
Sources: Housing Market Predictions, Turkey Construction Industry Report
Our team found this video where Istanbul's Kağıthane district is showcased as an area undergoing significant urban regeneration, offering undervalued property opportunities.
10) Negotiate prices in Turkey, as sellers usually anticipate bargaining
In 2023, the Turkish real estate market saw a 109% annual increase in property prices.
Despite this surge, buyers often find that sellers are open to negotiations to close a deal. Real estate agents in Turkey stress the importance of bargaining, advising buyers to strategically leverage the asking price and understand the seller's situation before making an offer.
In Turkey, bargaining isn't just a tactic; it's a cultural norm. This means that sellers typically expect some negotiation, which can be a great advantage for buyers looking to secure a better price.
Understanding this cultural backdrop can be crucial. It’s common for buyers to start with an opening offer that leaves room for negotiation, a practice deeply embedded in the Turkish market.
For those considering buying property in Turkey, knowing that negotiation is part of the process can make the experience less daunting and potentially more rewarding.
Sources: Timondro, Luxury Property Turkey, Luxury Signature
11) Avoid properties with shared ownership structures, as they can complicate resale and ownership rights
When buying property in the country, be cautious of shared ownership structures.
In recent years, especially around 2023 and 2024, there have been numerous legal disputes involving shared ownership properties in Turkey. These disputes often revolve around financial risks and legal complexities, like disagreements over taxes and fees. Imagine trying to agree on who pays for what, and suddenly, you're tangled in a web of third-party liabilities.
One major headache with shared ownership is that all owners must agree on any changes or renovations. This can lead to endless debates and make managing the property a real challenge. If one owner decides to sell their share, the others must agree, which can be a significant hurdle and prolong the resale process.
Ownership rights can get tricky too. If an owner passes away, their share must pass to the surviving tenants. Without proper management, this can lead to legal complexities and potential disputes. It's like a game of musical chairs, but with property shares.
These factors suggest a higher likelihood of disputes in shared ownership structures. So, if you're considering this route, be prepared for potential complications. It's not just about buying a home; it's about navigating a maze of agreements and potential disagreements.
Sources: Understanding Joint Tenancy in Turkey, Elimination of Joint Ownership Case in Turkey
Buying real estate in Turkeycan be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
12) Build trust and connections in Turkey, as understanding local culture is crucial in business dealings
In Turkey, building relationships is key to business success.
Communication here often involves indirectness and subtle cues, so understanding the local culture is crucial. People rely heavily on nonverbal signals, which means you need to read between the lines. This makes personal connections even more important, as they help you grasp the context behind messages.
In Turkish culture, strong relationships are essential, both inside and outside the workplace. Managers are encouraged to spend time developing personal connections with their team, clients, and stakeholders. This is because trust and rapport significantly influence business interactions.
Family businesses are common in Turkey, and they place a high value on trust and personal connections. Many of these businesses feel they aren't fully trusted by their customers, highlighting the need to build and maintain trust. Successful foreign investors often stress the importance of establishing strong local networks.
Trust is a critical component in Turkish business transactions. Many Turkish family businesses believe they are not fully trusted by their customers, which underscores the importance of building and maintaining trust. Successful foreign investors in Turkey often emphasize the importance of building strong local networks, which contribute to their success.
Gaining an edge in Turkey means understanding the local culture and building relationships, as trust and personal connections are highly valued in business dealings. This approach can significantly impact your success in the Turkish market.
Sources: Rivermate, PwC Turkey, Azkan Group, Business Chief
13) Work with local Turkish agents for insider deals and connections
In Turkey, local real estate agents often secure properties at below-market prices.
These agents have a knack for finding off-market listings, which means they can offer deals that aren't available to everyone. This insider access gives buyers a unique advantage, as highlighted by a study from Binaa Investment. Imagine getting a property that others don't even know is for sale!
Foreign buyers frequently rave about the deals they get through local agents. In Istanbul, for instance, many buyers have shared stories of how these agents negotiate favorable terms and uncover hidden gems. It's this personal touch and deep market knowledge that can really make a difference in what you end up paying.
When you compare prices, it's clear that properties bought through local agents are often cheaper than those bought through international ones. This isn't just a fluke; it's a testament to the financial perks of working with someone who truly understands the local scene.
Local agents in Turkey have a proven track record of finding undervalued properties. Their ability to navigate the market and connect with sellers directly often results in better deals for buyers. This is especially true in bustling cities like Istanbul, where the market can be competitive.
So, if you're considering buying property in Turkey, remember that local agents have the insider knowledge to help you find the best deals. Their connections and expertise can be invaluable in securing a property at a price that suits your budget.
Sources: Istanbul Real Estate, Binaa Investment
14) Conduct thorough due diligence on coastal properties in Turkey, as they may have unresolved title deed issues
When buying property in Turkey, especially along the coast, be cautious of potential title deed issues.
In the past, there have been instances where fake documents were used to transfer property ownership, making it crucial to verify ownership documents thoroughly. Real estate agencies often report common problems like boundary and ownership disputes in these areas. These issues usually stem from unclear documentation or disagreements over property lines, which can lead to legal battles and financial losses.
The Turkish government and legal advisors frequently warn about the risks of buying properties without conducting thorough due diligence. Media reports and testimonials from foreign buyers highlight numerous cases of property scams and legal battles over title deeds. These stories serve as cautionary tales, emphasizing the importance of careful verification before making a purchase.
Title deed issues are more frequent in popular tourist destinations like Istanbul and coastal regions, partly due to rapid development and insufficient planning. This makes it even more important to ensure all documents are in order. The allure of these areas can sometimes overshadow the potential risks involved.
For a smoother buying experience, consider hiring a local expert who understands the intricacies of the market. They can help navigate the complexities and ensure that all paperwork is legitimate. This step can save you from future headaches and protect your investment.
Remember, a little extra caution now can prevent a lot of trouble later. Always double-check everything and don't rush into decisions. Being informed and prepared is your best defense against potential pitfalls.
Sources: Vartur, Pera Property
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of Turkey. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
15) Hire a reputable lawyer in Turkey to navigate the legal complexities of property transactions, as many foreigners overlook this step
Buying property in Turkey can be tricky for foreigners.
Many face challenges because they misunderstand local laws, which can make getting a title deed tough. This deed is crucial for proving you legally own the property. Without it, you're in a risky spot.
Some buyers mistakenly use a "promissory sales agreement," thinking it gives them ownership. It doesn't. This mistake can lead to disputes and financial losses. Plus, scams like the Gerçek Evim Ponzi scheme, which raked in nearly $70 million, show the risks involved.
Experts always stress the need for a good lawyer. They say legal help boosts your chances of a smooth transaction. Many who skipped hiring a lawyer ended up in legal trouble, proving how vital professional help is.
In Turkey, the property market is bustling, but it's a maze of rules. A lawyer can guide you through, ensuring you don't fall into common traps. They know the ins and outs, making sure your investment is safe.
So, if you're eyeing a Turkish property, remember: legal advice is not just a suggestion, it's a necessity. Don't let the excitement of buying blind you to the potential pitfalls.
Sources: Guden Solicitors, Daily Sabah, Infographic Site
16) Avoid unexpected costs by understanding the local property tax system, a common oversight among foreign buyers
Many foreigners face unexpected tax bills when buying property in Turkey.
One common issue is that they often don't fully grasp the local property tax system, which includes specific tax rates and exemptions. This lack of understanding can lead to financial surprises. Imagine buying a charming villa on the Aegean coast, only to find out later that you owe more in taxes than anticipated.
Surveys and case studies show that foreign buyers frequently lack knowledge about the Turkish property tax system. This gap in understanding can result in misunderstandings and unexpected costs. For instance, some buyers have faced financial complications because they weren't aware of certain exemptions they could have claimed.
Articles and news reports often highlight these common pitfalls for foreigners in the Turkish real estate market. They serve as a warning to potential buyers about the importance of understanding the tax system. It's not just about the purchase price; knowing the ins and outs of taxes can save you from financial headaches down the road.
Many foreigners make the mistake of not understanding the local property tax system, which can lead to unexpected costs. This is a crucial point to consider if you're thinking about investing in Turkish real estate. The tax system can be complex, and without proper knowledge, you might find yourself in a bind.
To avoid these issues, it's wise to consult with local experts or real estate agents who are familiar with the Turkish tax landscape. They can guide you through the process and help you understand what to expect. This insider knowledge can be invaluable, ensuring that your dream home doesn't come with unwelcome surprises.
Sources: Tranio, Real Estate All Turkey, Global Citizens Solutions
17) Check the legal status of land in Turkey, as buying near military zones or strategic locations may face restrictions
When buying property in Turkey, be aware of restrictions near military zones.
These restrictions are in place because the Turkish government wants to protect national security. Back in 2017, a law was passed that prevents foreigners from buying or renting real estate in these sensitive areas. So, if you're eyeing a property, make sure it's not in a restricted zone to avoid any legal headaches.
Real estate agents in Turkey often stress the importance of conducting thorough legal checks before making a purchase. The rules can be tricky, and understanding the legal status of the land is crucial. Some foreign buyers have faced legal challenges because they didn't check if their property was too close to a military zone.
It's not just about avoiding legal issues; it's also about making a sound investment. Properties near restricted areas might seem appealing, but they come with potential risks that could affect your investment. Always double-check with local experts to ensure you're making a wise decision.
Insider tip: Some areas might look perfect for a holiday home, but if they're near strategic locations, you might face unexpected restrictions. It's always better to be safe than sorry, so consult with a local real estate expert who knows the ins and outs of these regulations.
Remember, the key is to be informed and cautious. By doing your homework and seeking advice from professionals, you can avoid the pitfalls that some foreign buyers have encountered. Stay informed and protect your investment.
Sources: Acuad Group, Damas Group, White & Case LLP
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.
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