Turkey is a country located between Europe and Asia with a rich cultural heritage and eglomareted cities such as Istanbul, Ankara, and Izmir. The Turkish real estate market is booming and is a lucrative investment opportunity for investors from all over the world. The country’s strategic location, stable economy, and affordable properties are the primary reasons why the market is growing at an exponential rate. This article aims to shed some light on the current state of the Turkish real estate market and provide insightful FAQs on buying properties in Turkey.
Overview of Turkey’s Real Estate Market
Turkey’s real estate market is one of the fastest-growing markets in the world. The market is well established and offers a wide range of opportunities for both local and international buyers. The country’s population is approximately 82 million, making it one of the largest in Europe, and is expected to continue growing. With the Turkish government’s initiatives to encourage foreign investment, the real estate industry has seen a substantial increase in sales volume and value.
The real estate market in Turkey is divided into two; residential and commercial properties. According to the Turkish real estate report, the residential properties demand for the year 2021, is expected to reach approximately 1.5 million, thanks to the government’s incentive to provide affordable housing. This demand will drive the real estate market in Turkey, leading to an increase in value as affordability ratings for houses remain higher compared to other countries in Europe.
Benefits of Investing in Turkey’s Real Estate Market
There are numerous benefits of investing in the Turkish real estate market. Below are some of the major reasons why investors should consider investing in the Turkish property market.
Affordability
Turkey offers a wide range of properties, including high-end luxury villas and mid-range apartments that are relatively cheaper compared to other European countries like Spain and France. The high affordability rating of the properties in Turkey is one of the significant reasons for foreign buyers wanting to invest in Turkish properties.
Location
Turkey is a strategically positioned country that connects Europe and Asia. The country is accessible from both continents, making it an attractive destination for business, tourism, and real estate investment. The unique positioning of Turkey makes it an ideal location for investors to tap both markets.
Ease of Doing Business
The government of Turkey has been working on creating an environment that is welcoming to foreign investors. One such initiative is the introduction of a visa program for property investors, which makes it easier for foreign property buyers to obtain a Turkish resident permit. Additionally, the Turkish government has been working on modernizing the country’s infrastructure, such as building new airports and expanding current ones, making the country more accessible to international investors.
High Rental Yields
Turkey is a popular tourist destination, and this makes rental properties a profitable venture for investors. Renting out a property in Turkey will attract a high rental yield, especially during the peak tourist season. Investors who prefer to buy property for investment purposes will find rental yields on their properties to be lucrative.
FAQs
1. What are the legal requirements for buying property in Turkey?
To buy a property in Turkey, foreign nationals need a valid passport and tax number. You can apply for a tax number in Turkey with your passport at any tax office. The process of buying a property takes about one week, and you will need to sign an agreement with the seller and pay a deposit of up to 10%.
2. Are there any taxes associated with buying property in Turkey?
Yes, there are taxes associated with buying property in Turkey. A VAT of 18% is charged on new properties, and a title deed fee of 4% is also charged. Additionally, there is an annual property tax of approximately 0.3% of the property value.
3. How can I finance the purchase of property in Turkey?
Foreign buyers can obtain financing from Turkish banks or pay in cash. Most Turkish banks offer mortgage loans to foreign investors, and this option is highly recommended for investors who do not have enough money to pay upfront.
4. What is the property market like in Turkey?
The Turkish property market is robust and has experienced significant growth over the past decade. The market is attractive to both local and foreign investors, thanks to the country’s stable economy.
5. What are the most popular types of property in Turkey?
The most popular types of property in Turkey are apartments, villas, and land. Apartments are the most popular among foreign investors due to their affordability and high rental yields.
Conclusion
In conclusion, Turkey’s real estate market is an excellent investment opportunity for foreign investors. The country’s strategic location, stable economy, and affordable prices make it an attractive destination for those looking to invest in the real estate market. However, before buying property in Turkey, it is critical to understand the legal requirements, taxes, and other factors associated with owning a property in the country. By following these guidelines and investing wisely, buyers can capitalize on Turkey’s growing market and build a strong and profitable real estate portfolio.
