Should You Invest In Real Estate In Turkey?
Updated: Feb 25
Turkey represents one of the most prominent and encouraging real estate environment in whole Europe. Turkey relies on one unique mantra, which is “Location before and above everything”. And it is a very important one.
Indeed, Turkey has one strategic and important geographical location. Turkey is home to two continents, making Istanbul the only city in the whole world having two continental sides, European and Asian side.
More than that, thanks to its geographical location, Turkey has direct connection with almost every part in the world, it is very well communicated with Middle Eastern countries, African countries, Extreme East Asian countries, direct highways with almost all Europe, and direct airways lines with the American continent.
Turkey is also home to more than 83 million habitants; Turkey has excellent potential for entrepreneurs and investors due to its vast construction industry and expanding commercial and industrial production.
Turkey is becoming a big attraction due to its vast unspoiled coastline and Mediterranean environment, which provides year-round nice weather. Purchasing property in Turkey is currently viewed as a smart long-term investment, given that Turkey is on the threshold of becoming a part of the European Union and has one of the world's fastest expanding developing markets.
Advantages of buying a real estate in Turkey:
Individuals who invest in a real estate in Turkey, or purchase a property, are admissible to apply for Turkish citizenship. Unless in military zones, foreign investors are able to purchase property in Turkey. As of September 2018, the terms of citizenship for individuals who purchase a residence in Turkey is $250,000 USD. In other terms, foreigners who purchase real estate in Turkey for $250,000 and their families can become Turkish citizens automatically. Owning a property in Turkey, a country with a thriving real estate and construction sector, is an excellent investment strategy.
Furthermore, by purchasing property for 650.000 Turkish Liras or more, you can obtain a three-year residence permit for you and your family, as well as the chance to apply for Turkish citizenship if you reside in Turkey continuously for five years in the home you purchased. Note: Within 5 years, you can only remain abroad Turkey for 1 year; the goal here is for the foreigner to reside in Turkey.
Foreign investors who acquire real estate properties in Turkey can get a residence permit, which can be renewed for specified lengths of time. They also have the opportunity to obtain a residence permit for their family. Foreign investors ' kids can attend school in Turkey if they have a residency permit. It is simpler for individuals with a residency permit to seek employment, and it is easier for businesses to get a work permit.
What are the restrictions to buy a property in Turkey?
In Turkey, like any other country in the world, there are regulations that govern foreign investments, and real estate purchases in general.
A foreign investor cannot buy more than 30 hectares of property in total
It is strictly forbidden to purchase a land or property in military zones. And also, even for Turkish citizens they will need a special permission to buy a property in those areas, and not all of them are eligible for it.
International investors can purchase up to 10% of a total area of the district where a private property is located.
Those that are considered by legal authorities to be unfit for the use for which they were acquired, as well as properties that are not declared to the Ministry of Environment and Urbanism within two years after the acquisition, may be susceptible to litigation by officials responsible.
The above-mentioned limitations do not apply to corporations with legal entities that are founded in conformity with the legislation of their respective countries.
Some Highlights and Economical Indicators about why Investing in Turkey in a Good Strategic Investment:
Foreign Direct Investments cash flows represented a total of 7.8 billion Dollars in Turkey in 2020. Where real estate only, represented 4.4 billion Dollars, having a total part of 57% of total foreign direct investments in 2020.
For the coming years, social sustainability and massive projects will dominate the priorities, especially in Istanbul. Marmaray, the Yavuz Sultan Selim Bridge, the Eurasia Tunnel, and Istanbul Airport are among the city's initiatives.
7.5 million residential units will be included in the Metropolitan Rehabilitation and Development plan. The plan has a USD 400 billion investment, with the business sector contributing significantly.
In 2020, the overall amount of properties sold in the Turkish real estate market surpassed 1.5 million units; similarly, purchases of property investment to foreigners started expanding after the repeal of the reciprocity law in 2012. In Turkey, 40,812 properties were bought by foreign investors in 2020. With 19,175 transactions to foreign people in 2020, Istanbul was the highest performing city, trailed by Antalya with 7,735 sales, Ankara with 2,746 sales, and Bursa with 1,340 sales.
In 2020, the total industrial real estate volume in Istanbul and Kocaeli was 10.2 million square meters. In 2020, 318,000 square meters of industrial rental agreements were conducted, nearly tripling the number from the previous year's conclusion.