![How to choose a reliable investment property in Turkey?](https://turk.estate/en/uploads/images/2022-03/800-antalya-turkey-november-15-2021-view-rooftops-kaleici-historic-city-center_480x320.jpg)
Real estate in Turkey is an excellent long-term investment option. Your most important thing to think about is choosing not just the right property but also the right location. As statistics show, if you do this well, the return on investment in Turkey can reach 5% per annum and the real estate payback will only take 6-7 years. In this article, we’ll take a look at why it’s worth investing in real estate in Turkey and how to choose the right property.
Content:
- Why do expatriates choose Turkey for investment and residence?
- How to choose an investment apartment
- How to secure real estate investment in Turkey
- We’ll help you buy real estate in Turkey
Why do expatriates choose Turkey for investment and residence?
Advantages of living in Turkey
The first and most common reason is the comfortable living conditions. These include:
- Climate – although the country is mountainous with a continental climate on the coasts of the Mediterranean, Aegean, and Black Seas, the climate is subtropical and temperate. There are hot summers (up to +40 °C) and milder winters (on average +5 °C). Foreigners choose these areas for living and holidays.
- Sea, sun, air, and beaches. Iodized sea air is beneficial for human health. That’s why Turkish resorts are popular not just for entertainment but also for their health benefits.
- Healthy environment and abundance of nature.
- Low cost of living – according to a report by the Numbeo research service, the 2022 cost-of-living index (cost-of-service ratio) in Turkey is 28.31 out of 100. In Bermuda and Norway, the index is 146 (46 above the baseline) and 100, respectively. So, living in Turkey is cheap. In financial terms, the minimum cost of living per person is 2800 liras ($201) per month.
- Fresh vegetables and fruits all year round.
Business advantages
Foreign investors in Turkey have the following advantages:
- A wide range of offers in the secondary and primary markets.
- Real estate is an investment with high profitability and fast payback (from 6 years).
- Rent growth – from January, the consumer price index increased by 48.69% compared to the previous year (with an officially established 22.58%).
- Rental income of 1.8-4.8% per annum (depending on the type of property, area, and other features).
- Low cost of flats and apartments – from $90,400 for a 1+1 apartment.
- Individual payment plans for primary housing.
- Interest-free installments from developers.
- A mortgage at 8% per annum (in dollars).
- Citizenship for investments in real estate from $250,000.
In Turkey, real estate is considered the most profitable investment. First, there are many foreign buyers and in January 2022, the country became the leader in the number of real estate transactions throughout Europe. There were 4,186 transactions in January compared with 2,675 and 3,907 in 2021 and 2020, respectively. This is a promising and profitable sector that interests buyers from all over the world. How can you succeed in this market and choose the right property?
How to choose an investment apartment
Foreigners choosing to invest in Turkey should understand what they want from buying real estate and know what results to expect. To minimize investors’ risks and improve the efficiency of investments, it’s important to consider the following points:
- Type of real estate (apartments, villa, etc.);
- A new building or a secondary one;
- Location;
- Realtor services;
- Future plans and prospects for market development.
To understand this better, let’s consider each point in more detail.
Type of real estate
During the pandemic in Turkey, like other countries of the world, villas and detached houses were and remain in high demand. People want more space and comfort. They want to live away from the noisy city center, closer to nature but still with enough developed infrastructure. But, small apartments are also popular. You can choose a proven option – buy an apartment in Turkey 1+1 and rent it out or live there and then resell to make a profit.
A new building or a secondary one?
Why are new buildings attractive to investors?
- Purchase in installments.
- Convenient payment plan.
- A well-thought-out infrastructure.
- High demand.
- A wide range of amenities.
- Warranty from the developer.
- When investing in off-plan housing, the price is 15-25% lower.
- Sell it at a profit.
Cons:
- If it’s an off-plan building, you will have to wait until it is completed.
- It’s impossible to determine the payback.
- The building is not time-tested.
What are the advantages of secondary housing?
- You can immediately sell or rent it out.
- The building is time-tested.
- Developed infrastructure.
- The liquidity and payback of finished projects is clear.
- The area is populated and in high demand.
- You can get citizenship by investing.
Cons:
- Apartment “with a history”.
- Additional repair costs.
- Outdated infrastructure.
- Defects you might not know about.
Housing in new buildings is attractive but buyers often choose time-tested ways when buying property. Trading Economics says that in January 2022, the number of transactions with new buildings was 27,203 compared to 61,103 transactions with ready-made ones.
Location
Location plays an important role in the commercial benefits for real estate. Real estate in popular tourist areas – on the coast or in a busy city center - has a higher payback. So, if you’re worried about the ROI and safe investments when buying a property in Turkey, pay attention to these places.
Realtor services
If you don’t have experience buying foreign housing and nor any information about the Turkish real estate market, get help from a specialist who has reliable information about current trends and knows where it’s more profitable to buy and rent a property.
Future plans and prospects
Investments in real estate in Turkey open up an additional source of income and an easy way to move to a beautiful country. An apartment to live and invest in must meet some requirements. A buyer should carefully choose the area and check it out from all sides like its liquidity, transport accessibility, urban infrastructure, etc.
How to secure real estate investment in Turkey
- Getting some initial information about the developer/owner’s history will minimize risks. You can find all the documents for projects and construction work on official websites or you can request it.
- Seek help from a broker or lawyer – they’ll help ensure the transaction’s legality.
- Before you sign a contract, carefully read through everything.
We’ll help you buy real estate in Turkey
Look for apartments in new buildings in Turkey, compare prices, see photos and check out real estate at Turk.Estate. If you need professional advice or any help from a real estate specialist, you can contact our company's manager on the website.