Turkey is a unique country which connects Asia and Europe. It boasts many appealing aspects such as a multicultural society, rich history and an advantageous geographical location. Just some of the reasons why Turkey is one of the most preferred countries in the search for investment about real estate.
One of the best markets for foreign investors is the real estate market in Turkey. It continues to grow, day by day. This interest can be attributed to many factors. One of which is Turkey’s investment program, which offers dual citizenship to Investors. Notably, the Turkish real estate market continues to attract increasing attention from foreign investors in 2020.
Real Estate in Turkey for Foreigners
Turkey welcomes foreign investors due to its advantageous programs. An investor may become eligible for Turkish citizenship upon purchase of real estate worth at least $250,000, in any area of Turkey. This program is called “The Turkish Investor Program”, which is a privileged citizenship program.
The program enables an investor to receive a Turkish Passport with same rights as a Turkish citizen, including the right to live, work, and enjoy easy access to the Schengen zone countries. Furthermore, through this program, for which demand is increasing every day, investors may also have the right to work and set up their own business . They can also have access to education and healthcare services in Turkey. In short, when applying for Turkish citizenship, an investor may easily have a Turkish passport and become a Turkish citizen with full rights.
How Does the Citizenship Application Process Work in Turkey?
When you buy property/properties, with a combined value of at least $250,000, you can apply to the Tapu Office (General Directorate of Land Registry and Cadaster), and request to obtain Turkish Citizenship.
Your application is. sent to the Ministry of Environment and Urbanization, whose Appraisers check and verify the value of the property. The Ministry then places a statement on the Tapu (title deed) stating that you may not sell it for 3 years.
They then send your application to the General Directorate of Population and Citizenship Affairs. You are later invited to give your signature and receive your ID card and Turkish passport. Do not forget all nationalities who are able to buy property in Turkey, may apply for Turkish citizenship by investment.
Real Estate in Turkey for Sale – Buy Real Estate in Turkey
Most investors have the same question in their mind “How much is the total cost for my investment?”. Whilst this is a really good question, unfortunately there is no simple answer. The cost of buying a property in Turkey varies, within the range of 1% to 20%, depending on the investment you choose.
First of all there are two major taxes you should consider when buying a property/properties. The first one is the Purchase tax, also known as VAT. It is calculated according to specific variables of the property you choose, such as size, quality, location etc, and can be either 1%, 8% or 18% depending on certain criteria. However, if it is your first property purchase in Istanbul, you can take advantage of 1% VAT.
The second tax you should consider is Title deed transfer cost. Title deed transfer cost is determined by the Tapu Registration office and is calculated as 4% of the property purchase price. The Title deed transfer cost can sometimes be covered by the construction company depending on the project. Alternatively, if you were to invest in an urban redevelopment project, you could benefit from a tax exemption scheme which covers the cost of the title deed transfer.
Thus, although there are many variables to consider when calculating the actual cost of your property purchase, we can say, in short, that you will pay an average of around 8.5% in taxes, on top of the property price, for your investment.
Real Estate Agents Turkey
You may have already discovered that there are many real estate agencies in Turkey. What sets us apart from them is our integrity. As Turesta, we have a reputation for fair-trading, honesty and credibility, which is why we still have good relationships with our customers, who have so far bought over 20.000 houses, with our help.
One of the cornerstones of our success is that we always choose properties which have high standards of quality and design, in optimum locations. Whether you are looking for a home to live in, or making a rational investment plan, we ensure that you get the best value for your money. Furthermore, when you make a property purchase through Turesta, you will not pay any commission or agency fee.
Luxury Real Estate vs. Cheap Real Estate
Turkey is a big country and Istanbul is the most lively, historical and socio-cultural city in Turkey. Every investor can find whatever property he or she is looking for here. For example, If an investor is looking for a quiet, peaceful luxurious real estate to live in, he can find the most stylish properties in Istanbul.
Luxury real estate in Istanbul have many features such as private gyms, advanced security systems, safe parking facilities, restaurants etc. With well-planned spacious kitchens, modern stylish rooms and advanced design approach, the resulting quality of life serves to increase the value of your house.
With so many different options to consider, it can seem difficult to find a property that is both luxurious and affordable. If you are an investor and you are looking for a cheap but also luxurious real estate, we can help you find it. We are confident that, with our experience in the sector, we can find you the best properties in Istanbul for Turkish citizenship by investment program – and we won’t charge you commission or agency fee.
Real Estate Lawyers in Turkey
Buying any property in a foreign country, especially coupled with a Citizenship application, can seem very complicated. Without doubt you need to find a professional and trustworthy real estate lawyer to guide you through your property purchase and Turkish Citizenship application.
Turkey Real Estate Statistics
The real estate market in Turkey achieved nearly $ 29 billion in income in between 2011-2018. Istanbul was the first province with 58.488 sales in between 2015 and January 2020.
The number of foreign investor in Turkey in between 2013-2019;
- 2013 – 12.181 foreign investors
- 2014 – 18. 959 foreign investors
- 2015 – 22.830 foreign investors
- 2016 – 18.189 foreign investors
- 2017 – 22.234 foreign investors
- 2018 – 29.663 foreign investors
- 2019 – 45.483 foreign investors
2019 Real Estate Sales for Foreigners
Turkish Statistical Institute (TUIK) announced the real estate sales statistics for the period of December 2019. Sales of real estate to foreigners increased by 14.7 percent in 2019 compared to the previous year. Istanbul took the first place in December 2019 with the sale of 2,650 real estate. Istanbul province was followed by Antalya with 957 real estate sale, Ankara with 317 real estate sale, Bursa with 212 real estate sale and Yalova with the sale of 154 real estate.
In January 2020, 3.907 houses were sold to foreigners
In house sales to foreigners became 3.907 by increasing 23.3% compared to the same month of the previous year. Istanbul was the first province with 1.875 sales in January 2020. The followers of Istanbul were Antalya with 762 house sales,. Ankara with 235 house sales, Bursa with 163 house sales and Yalova with 128 house sales.
House sales for foreigners, January 2020
Source: TUIK (Turkish Statistic Institute)
What is the Outlook of Istanbul Property Market?
International financial & real estate experts such as Deloitte, HSBC, Bloomberg, KPMG and Knight Frank are expecting property prices in Istanbul to keep soaring up in the next 5 year period due to below reasons:
- It’s now cheaper and faster to build new properties thanks to improved construction technology
- Increasing house prices driven by the demand & young population
- Rising foreign demand in Turkish property market
- Actual and forecasted record levels of tourism in Turkey
- Extremely healthy economic conditions of Turkey
Best Real Estate
Finding the perfect home for yourself and your family can be challenging. Your expectations and your budget are going to be the first two important points in your search. When you tell us the kind of property you are looking for, and your preferred region, we will prepare a portfolio of selected properties, based on your requirements. Once you have completed your real estate investment, you will be entitled to apply for Turkish citizenship.
Turesta’s legal team and. After-sales Department will be at your service to offer guidance and assistance in all stages of your property purchase and. Citizenship application, including management of your property, if the purpose of your purchase is to achieve rental income.
Real Estate Companies and Agencies in Turkey
Istanbul is a place for family life and a growing investment market for domestic and foreign investor at the same time. The city has many luxury flats and cheap houses for sale. There are also incredible luxury villas that attract investors’ attention.
You can find properties in Istanbul with high standards of quality and in an optimum location to fulfill your expectations. Whether you are looking for your own home, or an investment property. Istanbul has a wide variety of real estate options.
In other words, the real estate market of Istanbul appeals to different investors for different reasons. If you are interesting in learning more or need advice regarding neighborhoods, please call or message us. You can also visit our office to have a chat with a specialist. For more information you can also look our FAQ page and services.