Insights
The Turkish real estate market has been booming for years now, making it a very attractive prospect for foreign investors looking to diversify their property portfolios. However, trying to navigate the unfamiliar waters of a byzantine foreign real estate market can be overwhelming.
With this article, we intend to alleviate – if not obviate entirely – that particular concern. Buying and managing real estate in Türkiye needn’t be all that difficult, and with the right choices you can find yourself the proud owner of Turkish real estate that offers an excellent ROI – and may even be used as a path to Turkish citizenship.
At first glance, Türkiye might not seem the most attractive proposition to prospective buyers. House prices have steadily crept up over the past ten years, which makes it seem as if it’s very much a seller’s market.
However, a post-Covid boom in development and regeneration projects, leading to an uptick in housing stock and a fresh chance for foreign investors to get involved with the Turkish real estate market after the events of 2020.
In fact, with new economic policies put in place by Erdoğan after his re-election in 2023 – policies designed to reinvigorate the Turkish lira and reduce the burden of inflation upon the Turkish people – we could be looking at a rejuvenated Turkish real estate market and a massive property boom. Long story short – this could be the time to get in on the ground floor of real estate in Türkiye.
In addition to this, there are a few other strings to Türkiye’s bow when it comes to potentially buying real estate there. The country is excellently located between Europe to the west and Asia to the east, and it enjoys beautiful coastlines both on the Mediterranean and the Black Sea.
Further to this, Turkish culture boasts a unique blend of Eastern and Western mentalities, with a distinctly Asian work ethic combined with a Western aspiration towards a higher quality of life. This makes it a great choice for anyone considering the country as the site of a second residence (or holiday home).
Short answer: yes. However, there are a few stipulations and complications to bear in mind.
Foreigners are only allowed to buy 30 hectares of property in Türkiye in total, meaning that you could not buy multiple properties that exceeded 30 hectares when calculated together. This may seem limiting, but 30 hectares is actually quite a lot, and you’re unlikely to be buying up massive tracts of farmland anyway.
Furthermore, there are certain restricted military and security zones where foreigners are unable to buy property. Again, these areas are unlikely to be anywhere you’d want to buy property anyway.
Foreigners are also forbidden from owning property that exceeds 10% of the total area of a given district or town, must not acquire property in a manner that violates Turkish law, and must abide by all relevant ministry/administrative laws and regulations when purchasing the property.
Generally speaking, yes. There was a time when an unwary investor may have been scammed or duped, but those days are long gone now. Türkiye has recognised the value of foreign investment and has taken appropriate steps to safeguard the interests of foreign investors in order to assuage their concerns and encourage further foreign investment.
However, it always pays to protect one’s interests, so when purchasing real estate in Türkiye you should engage the services of a reputable local lawyer and ensure that everybody you work with has a good level of English (or that an accredited interpreter is present). That way you can ensure that you understand every step of the process and that no misunderstandings occur.
Not only is it possible, but it’s one of the best ways to get citizenship by investment (CBI) in Türkiye. You can also get citizenship in a number of other ways, including depositing a lump sum in a bank account or buying government bonds, but the fact of the matter is that real estate investment is by far the best way to maximise your ROI when buying property in Türkiye. It’s simply a matter of doing your homework and buying smart.
The minimum investment amount as of 2023 sits at (USD) $400,000 for real estate. It’s a significant sum, but unlike other options, you stand a chance of making a lot back from that.
One thing to bear in mind is the rent increase freeze brought in as of 2023, meaning that rent cannot be increased by more than 25% per year. If you’re thinking of buying a residential property with a view towards renting it out, this may affect your decision.
Although real estate prices in Türkiye have exploded in recent years, the fact of the matter is that they remain much cheaper than equivalent prices in, say, the UK or US.
Take, for instance, the cost of an apartment in Istanbul compared to London. The cost per square metre in London city centre is more than £13,000. In Istanbul, it’s just under £1,900. All told, it’s around 89% cheaper to buy a city-centre apartment in Istanbul than in London.
If we set Istanbul and London aside and consider the two countries as a whole, it’s between 76.5%-80.9% cheaper to buy residential real estate in Türkiye than in the UK. The difference is less pronounced between Türkiye and the US, but it’s still quite stark.
In addition, the lira’s 10-year spiral is not good news for the average Turkish person looking to buy a property – but it is very good news for foreign investors, who will find that their GBP or USD will stretch much further within Türkiye than they would have a decade ago.
Türkiye is a large country with a great many cities and towns that you might consider when buying property. Istanbul, naturally, is the most obvious (and popular) choice for real estate investment, and we’ll go into more detail about why you might consider Türkiye’s cultural (if not de jure) capital for your real estate investment below.
First, however, let’s take a look at some less obvious picks for Turkish real estate purchases.
Türkiye’s capital city is not quite as happening or cosmopolitan as Istanbul, but it’s still a great pick for anyone looking to put down roots in the country. It has almost everything that Istanbul is able to offer, but with the added bonus of being less hectic and crowded. Very much a dark horse worth considering when thinking about buying Turkish real estate.
A great stealth pick that’s only an hour away from Istanbul, Bursa is a hidden gem bursting with history and great sights, as well as plenty of greenery and some stunning vistas just outside the city. What’s more, real estate prices are incredibly low here.
This port city, located on Türkiye’s southwest coast, is a bit of a luxury pick, with a lot of high-end properties up for grabs in the area. It’s hugely popular with tourists which, in addition to its status as a ‘luxury’ town, has contributed to rising property prices, but it’s still a great pick nonetheless.
After Istanbul, Türkiye’s “tourism capital” is the most popular pick for foreign investors, and there are a huge amount of expats who call the city home (particularly Britons). It’s located in a beautiful area of the country’s southern coast, and the huge demand for seasonal accommodation makes it a great place for a to-let holiday home.
The capital of more than one empire and positively bursting with life, Istanbul is by far the most popular pick for foreign investors looking to buy property. It’s commensurately more expensive, of course, but you get what you pay for – and with Istanbul, you’ll be getting a whole lot. Cosmopolitan, vibrant and fashionable, there’s simply nowhere else in Türkiye that compares.
Buying property in Türkiye may seem like a headache for many foreign investors, but the fact of the matter is that with the right guidance – and a good idea of what it is you’re looking for – you’ll be able to navigate the waters of Turkish real estate without too many issues.
By engaging the services of competent agents who are well-versed in both English and the intricacies of Turkish property law, you put yourself in an excellent position to ensure as fluid and fruitful an experience as possible.
And since you’re planning to buy real estate in Türkiye anyway, why not combine it with a citizenship by investment application? Not only can you make the most of your Turkish real estate, but you can also earn a second passport out of it.
Buying property in Türkiye may seem like a headache for many foreign investors, but the fact of the matter is that with the right guidance – and a good idea of what it is you’re looking for – you’ll be able to navigate the waters of Turkish real estate without too many issues.
By engaging the services of competent agents who are well-versed in both English and the intricacies of Turkish property law, you put yourself in an excellent position to ensure as fluid and fruitful an experience as possible.
And since you’re planning to buy real estate in Türkiye anyway, why not combine it with a citizenship by investment application? Not only can you make the most of your Turkish real estate, but you can also earn a second passport out of it.
Buying property in Türkiye may seem like a headache for many foreign investors, but the fact of the matter is that with the right guidance – and a good idea of what it is you’re looking for – you’ll be able to navigate the waters of Turkish real estate without too many issues.
By engaging the services of competent agents who are well-versed in both English and the intricacies of Turkish property law, you put yourself in an excellent position to ensure as fluid and fruitful an experience as possible.
And since you’re planning to buy real estate in Türkiye anyway, why not combine it with a citizenship by investment application? Not only can you make the most of your Turkish real estate, but you can also earn a second passport out of it.
Get in touch to discuss how we can help you with your citizenship or residency by investment goals. One of our investment migration experts will contact you to discuss your case. With over 16 years of combined experience our team has helped hundreds of families achieve freedom.
