According to statistics published recently by the Turkish Statistical Institute (TÜİK), The total number of real estate owned by foreign nationals in Turkey between Jan 2013- July 2021 reached 245 thousand units. Because of the Covid-19 Pandemic, the number of residences sold to foreigners slightly decreased by -10.2% in 2020 compared to 2019 (45,483 to 40,812). While there was an increase in sales by 14.67% in 2019 compared to 2018.
But you may ask yourself, is buying a property in turkey a good investment? How is Turkey attracting foreigners? And What are benefits have been given to them?
Daily Sabah announced that; One survey, conducted by the U.S.-based international real estate investment company Remote Ventures in 2020 listed the 25 most advantageous real estate investment markets; Turkey ranked 14th among 200 countries in terms of:
1- Reasonable prices of real estate
Compared to other countries: Real estate prices in Turkey, in general, are still very competitive in comparison to other countries like (Spain, Portugal, and Greece). The lowest prices you can find for a property in Spain for example, are between 106,940 € and 122,283 € in regions like Estremadura and La Rioja, while you can afford luxury real estate in Istanbul for 122,000 €.
2- Profitable for investors:
Turkish lira lost 24.82% of its value against the dollar and 34.53% against the Euro, the devaluation of the currency some investors can consider it as great opportunity to buy a property at this time, despite the expansion of urbanization in turkey the demand for real estate is exceeding the supply, this leads to generating a high return on selling and renting.
3- Lower cost of living:
The cost of living in Turkey is, on average, 54.77%lower than in the United States, and the rent in Turkey is, on average, 82.47%lower than in the United States. Istanbul, Ankara, Izmir, Antalya are the most expensive cities in turkey with cost of living indexes of 34.31, 32.28, 31.30, 30.74, respectively. According to NUMBEO, the last updated data in June 2021, the cost of living for a single person is estimated at 3,447.94TL monthly without rent. And the highest percentage of the monthly costs go to grocery shops followed by transportation.
4- Income / Property tax:
Turkey imposes taxes on the worldwide income of residents in Turkey, while it deducts taxes on Turkish-source earnings only of non-residents. Turkey has an average of 34% income tax which is somewhat above the worldwide average percentage. The Organisation for Economic Co-operation and Development (OECD) in 2019 finds turkey’s property tax percentage is below the average of the total tax percentage taken in the world with 0.001% on residences.
Property on Tax in Turkey for 2021 is indicted in the table below
|Real Estate Type||Outside the borders of metropolitan cities||Within the borders of metropolitan cities and their adjacent areas|
5- Modern construction technology Adoption:
Real estate developers in turkey are focusing on modern infrastructure and constructing with the latest in architecture and advanced home technology. For example, modern areas in Istanbul like Başakşehir are incorporating Smart home technology, and communal amenities like a sauna, fitness gym, swimming pool, and barbecue area.
6-Turkish citizenship opportunity:
Foreign nationals who are purchasing real estate in Turkey with a total value of 250,000$ or more have the right to apply for Turkish citizenship (buyer and their families).
7- Tourism sector growth:
Turkey ranked the 6th most preferred tourist destination in the world in 2018, and 46 million tourists arriving in turkey during the same year with USD 29.5 billion total turnovers of the tourism industry. And according to Forbes, turkey is in the top 10 of the most visited places worldwide
8- Turkey’s unique geographical location:
Turkey is surrounded by sea on three sides; The Black Sea, the Mediterranean Sea, and the Aegean Sea, which is considered the bridge between east and west. And the unique Mediterranean climate makes turkey one of the most attractive destinations in the world.
9- Multicultural life in turkey:
In turkey, you have the opportunity to meet new people and make new friends. It is a combination of East and West civilizations. It has people from multiple religious belonging, races, colors, traditions, and cultures.
10- Education in turkey:
Turkey has qualified higher education opportunities; Degrees granted by Turkish universities are recognized in all countries in the world. The number of programs taught in English is growing. And Turkey is one of the most successful countries participating in the exchange programs under Erasmus + besides other successful exchange programs such as Mevlana and Farabi.
11- Medicine in turkey:
Lastly, medical tourism is highly developing in turkey, and it became one of the five world leaders in health tourism. It has world-class technological and medical equipment and qualified medical staff in public and private Turkish hospitals.
What is the best time for buying or selling property in turkey?
The Spring season (in March and April) is a good time for buying and selling a property in Turkey. You can own real estate at a very reasonable price in that period, because in the summer holiday after the academic year ends, families move abroad. But, usually the real estate market takes a big leap during the summer season in May, June, July, and August. Or if you want to catch the opportunity to buy a property at lower prices, winter is the best time to own a real estate (between December and February) the demand for real estate declines and the prices get lower.
Note: If you want to invest in Istanbul we recommend you to buy properties in areas like Başakşehir and Güneşli Basın Ekspres both have great potential for the future.
To sum up, Turkey is a great place to invest in; it provides all the features foreigners are looking for in an attractive market. It has outperformed other similar countries first, in embracing foreign investors and providing them with great benefits at lower costs. In addition to its modern urbanization, multicultural society, reasonable living cost, natural beauty, and historical and religious sites.