Istanbul, a city with a centuries-old history, culture and global investment potential, serves as the centre of trade between East and West, a powerful magnet for tourists and businessmen worldwide. Purchasing apartments in Turkey not only promises the opportunity to live in a country renowned for leisure and travel but also holds significant potential for capital growth for those who are interested in such opportunities.
In this article, we have discussed the five main reasons that explain why buying real estate in Istanbul is worthwhile
Content:
- Five Reasons to Buy an Apartment in Istanbul
- Citizenship for real estate
- History, tourism and business potential
- Economic progress in Turkey
- Simple purchase process
- Fund protection
- Our assistance in buying real estate in Turkey!
Citizenship for real estate
This programme has made life easier for many foreigners who want to settle in this country. Since 2016, it has been sufficient to buy a property in Turkey for a certain amount and retain ownership for three years to obtain Turkish citizenship. The Citizenship by Investment programme aims to attract investments from abroad and improve the real estate sector.
Currently, the minimum investment threshold for real estate stands at USD 400,000. Within the framework of the program, you can buy any property, including an apartment, as long as the time of acquisition, it’s fully prepared, suitable for habitation and valued at least at the established limit.
In 2022, over 20,000 foreigners acquired Turkish citizenship through property purchases and their number is steadily increasing.
History, tourism and business potential
Istanbul, with its rich history dating back to the Byzantine and Ottoman Empires, stands as one of the most popular tourist destinations globally. For investors, purchasing real estate in Istanbul not only offers the luxury of a vacation spot year-round but also presents an excellent business opportunity. While many buyers choose not to rent out their new homes, it’s always worth considering, especially in a popular tourist destination.
Of course, renting out real estate is not the sole avenue to capitalise on business opportunities in Istanbul. As the economic, business and financial heart of Turkey, Istanbul is poised for continuous growth in the coming years, fueled by substantial investments in the city,
Economic progress in Turkey
The international demand for the acquisition of residential, commercial and office real estate in Turkey has increased significantly in recent years. This is due to the increasing confidence and high quality of investment projects in Turkey. The number of foreign investors buying real estate in Turkey is expected to surge by 50% in 2022, marking the most substantial annual increase since 2010.
As per the latest data, Turkey's GDP stands at USD 871.5 billion, with young people constituting 32% of the total population. This youthful and continually expanding population attracts foreign investors, indicating a vast potential market for goods and services.
The Turkish banking industry is also highly supportive of international investments, with numerous mortgage companies operating in the country offering competitive interest rates and flexible terms. In 2022, these banks provided foreign investors with mortgage loans totalling USD 10 billion.
As per the International Monetary Report, Turkey achieved a 5% economic growth rate in 2022 and economists anticipate that this progress will continue to increase over the next few years. By the end of 2023, the volume of exports to Turkey is projected to reach USD 242 billion, followed by a further increase to USD 255 billion in 2024, accompanied by an anticipated 8% slowdown in monetary inflation.
Simple purchase process
When contemplating real estate investment, you will need to study all the factors, including the lengthy and complex legal processes associated with it. Fortunately, Turkey is considered one of the easiest countries for owning real estate, as the procedures for purchasing property are simple, not burdensome and do not require the presence of a lawyer. However, to understand all the processes, fluency in Turkish or the assistance of an intelligent translator is necessary. The services of a specialist will be required to translate all legal documents essential for completing the transaction. While hiring a lawyer is not a bad idea, it’s not always necessary. The process of buying a home in Turkey typically takes from three to six weeks.
Fund protection
Studying the history of currencies from the most significant countries, commonly used as a stable haven for capital, reveals that real estate investments safeguard against devaluation in comparison to currencies and key precious metals such as the dollar and gold. Real estate investments in Istanbul are particularly attractive precisely due to their reliability. Real estate prices always fluctuate depending on the exchange rate of the Turkish lira and if prices in the local currency decrease, the value of the property logically rises to compensate for any decline in the property’s price. Additionally, the Ministry of Economy and the Central Bank of Turkey are two key actors in ensuring stability and balance in housing and food prices concerning the Turkish lira.
Our assistance in buying real estate in Turkey!
Find your investment and living property in the country of your choice on Turk.Estate! The site features houses and development projects in Turkey at competitive prices, directly from owners, licensed agencies and major construction companies. Our specialists are always ready to assist you in choosing a suitable property and guiding you through the purchase process. To learn more about safely and profitably buying a house in Istanbul, contact our manager.