Why to invest in real estate in Turkey?
Many people start to consider buying real estate in Turkey after they visit this sunny country as tourists and enjoy its ‘all inclusive’ hospitality. A great number of them are looking for a nice apartment or villa by the sea where they will be able to spend short holidays several times a year. For some people the main reason of buying a property is permanent residence and the possibility of obtaining Turkish citizenship in the future. And, others consider Turkish real estate to be a profitable investment and plan to give their property for rent or resell it and earn on the price difference.
Turkey offers a wide variety of real estate at extremely attractive prices. One can find simple affordable studio apartments as well as luxurious sea view penthouses and villas here. Foreigners are mostly attracted by the popular coastal touristic cities and cultural capital Istanbul because of the high number of affordable regular and charter flights available all year round. Getting around the country is very simple thanks to the perfect operation of the public transportation system.
One of the obvious advantages of purchasing property in Turkey is the favorable visa regime and the easy procedure of obtaining a residence permit. Citizens of many countries can visit Turkey for tourism purposes without wasting time and money on visa application. And, owners of residence permits can enjoy beautiful climate, picturesque landscapes and abundance of delicious and fresh fruits and vegetables everyday without leaving the country. Moreover, already after 5 years property owners can apply for Turkish citizenship and become equal citizents of this wonderful country.
The procedure of purchasing property and transfer of the ownership is very simple and transparent. The main document certifying ownership rights, TAPU, can be issued in several days. This official document is registered in the Department of Cadastral Office and the entire procedure is strictly controlled. For all real estate objects there is a single register, and this eliminates any risk for the buyer.
The price of living is quite low. Fresh fruits and vegetables are extremely cheap at the market. There are many shops with cheap but stylish and high quality clothes and home textiles. Many people come to Turkey with the purpose of buying local jewelry, leather and fur. Prices for most of the products and services are much cheaper than in Europe or USA.
Thus, Turkey is an attractive country for a big number of foreigners. This ensures the high demand for property rent and purchase and, in its turn, creates a fertile ground for investments. The share of investments in real estate is about 12-15% of the total foreign investment in Turkey.
First of all, investment in Turkish property is advantageous because of its high liquidity. Apartments in residential complexes, which offer a wide range of services and are located in the areas with well-developed infrastructure, are in high rental demand all year round. They are attractive for resell as well. What’s important, some real estate agencies offer purchase options with already guaranteed rent. For example, you can receive guaranteed 5000 - 6000 euros rental per year if you buy a relatively small apartment this way. And, the search for tenants and addressing all of the related issues will be all the way down on the agency.
Another important thing is that Turkey provides a highly reliable market. Country’s economy is characterized by the stable growth and t is one of the twenty biggest economies in the World. Real estate prices are growing steadily as well. Those who bought property in Turkey several years before can now sell it at a much higher price. The real estate market in the country is constantly growing. And, every year there is a huge amount of new buildings, including many luxury facilities offering high-end services, being built in Turkey.
Moreover, Turkey is distinguished by the favorable attitude to foreign investors. The government is constantly working on the simplification of the procedures and the creation of a favorable climate for attraction of new investors. Risks are reduced to zero. Foreign investment activity regime is one of the most liberal in Turkey. After selling Turkish property one can easily transfer money to his/her homeland. And, what is also important, foreigners can take credits for the property purchase in a Turkish bank, and there is a possibility of purchasing property in installments over several years.
In addition, it is very profitable to invest in the projects under construction. Turkish construction companies not only finish the work on time but often are ahead of the specified time limits. Mild climate and high demand contribute to the rapid terms of projects’ completion. Sometimes Turkish banks offer insurance which guarantees a certain payment in the event of delays. Property under construction can be bought very cheap and it is possible to earn very attractive sums of money on its resale with virtually no related risk.