News about investment in Turkey are everywhere these days, with many new laws and regulations making this process as easy and advantageous as possible. Investors from all around the world select Turkish properties for real estate investment, but what makes Turkey real estate investment that important?
Why did Turkey gain all this popularity in the investment market ?
Years ago, the Turkish real estate market was limited to only property sales for foreigners looking for settlement and finding a new home. Today, on the other hand, the real estate market has shown a great transfer from settlement properties to real estate investment deals.
The housing market in Turkey has developed offering variety of types such as renovated Turkish houses, resale properties, authentic Turkish villas and apartments. Today, modern and high quality properties including smart-homes, innovative residential projects, hotel-concept apartments, office flats, commercial properties and mixed-use projects have all contributed to this transfer from settlement plans to investment offers.
40,000 homes in Turkey were sold to foreigners in 2018 and this year, the rate is expected to reach more than 50,000 homes. This reflects the amount in which the Turkish real estate market has grown in popularity with investors coming from Europe, the US, the Middle East and different other countries searching for their new home, Turkish citizenship application or for a promising investment deal.
Additionally, Turkey offers all its residents and visitors a quality of living with the beautiful landscapes, climate and culture making it an enjoyable place to live all year round. A place that combines nature surroundings, comfortable living style and financial benefit is for sure a place for a great investment deal at an affordable given price. These qualities are rarely found in other countries, making investment properties in Turkey a rewardable opportunity.
Top Reasons to Invest in Turkey
- The Turkish currency plays a big role in this market, since the difference between Turkish Lira and other currencies is changing all the time, foreign investors would most likely find the property values and living costs in Turkey more affordable compared to other countries.
- Turkey is a touristic country with millions of people visiting all year round making it a perfect spot for long-term rent and short-term rent investment.
- The quality of properties found in the Turkish market are another reason for people to consider property investing in Turkey. Buyers can select from a large category of properties ranging from old and renovated to new and innovative.
- The feasible property purchase laws and regulations in Turkey as they became more flexible and tempting with laws such as Turkish citizenship by investment attracting people from all around the world. This citizenship by investment programs offers buyers a guaranteed opportunity to apply for citizenship if the property they bought have a value of 250.000 $. Buyers of properties with less value or who don’t intend on getting citizenship have the opportunity to get residency permits in Turkey following simple application processes.
Are Turkish Properties a Rewarding Future Investment?
With all those Turkish investment property types and different prices, you are probably thinking whether it is still a future rewarding investment or not. Therefore, the following are important points to keep in mind when taking the decision. For all types of investment properties, it is crucial to research about the city and location you intend to buy in. The income rate from investment depends on this factor as well as the quality of the property and the unique features it offers. The following are property types that are most popular for investment seekers:
- Buying a renovated property
Being an owner of a Turkish-style house is a dream of many people, but it is also a costly investment. Such properties have a high house price due to their value. Additionally, the renovation cost for a traditional home is quite high and if you don't have the budget for it, your investment plans might not be as rewarding as you wish. The idea of investing in a renovated house is tempting for many, so if you want to invest in a similar property type, make sure there aren’t any old mortgage payments and calculate first all renovation costs required to make this investment a worthy one.
- Buying a property with rental income
This is a famous type of investment and the most rewarding one. Depending on the type of property, location and the quality of the property you buy, your income rate will differ.
30% of the holiday market comes from self-renting properties for short stay including holiday homes and apartments. The income rate differs from one location to another based on the touristic demand in that area. For example, in the coastal and resort-like areas, holiday homes with swimming pools are popular, especially if they have recreational features like private pool, garden or social facilities in a complex. We strongly recommend you search about the location you want to buy a property in if you are considering investment houses in Turkey.
Long term rentals are also another type of properties but offer a lower income. Keep it noted that you need to pay an income tax too and market your own business if you want your investment property to take place in the market.
This type of property investment in Turkey are found in the city centre or residential areas due to the high demand of long-term residency in these areas. Student property are also famous and ensures a long term rental yield in the property market. If you are planning to buy a property in Turkey for investment and invest in it while living abroad, make sure you find a trustworthy team to manage your property while you aren't residing in the country.
Financial Planning for Turkey Real Estate Investment
When buying a property in Turkey for investment, try to avoid taking mortgage from banks with high-interest rate. Instead, you can buy a Turkish property with payment installment that has no interest rate for the first year and has constant interest rate for up to 5 years. The plan of avoiding the high mortgage interest and going for an instalment plan will guarantee your financial planning is well managed and secure your investment plans.
These are all important details for all real estate buyers searching for investment apartments, rental properties or houses in Turkey.
Due to our long history in the Turkish real estate market, we provide consulting and orientation for all investors selecting Turkey as their targeted country. If you want your investment plan to work out well ensuring a lifetime success, working with a trustworthy real estate agency is the first step to achieve that.
Do you still have Questions about investing in Turkey?
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