Since 2002, Turkey’s real estate market has grown in popularity with foreigners seeking a sunny lifestyle or alternative investment options. Despite economic challenges affecting other sectors, the foreign housing market in Turkey is thriving.
In September 2018, foreign property sales surged by 151% year-on-year. Official figures from Turk Stat, the National Institute of Statistics, show steady growth over the past five years, except for a brief lull in 2016 due to global terrorism fears affecting travel, tourism, and property markets. In 2013, foreigners purchased 12,181 properties in Turkey. Projections for 2018 suggest that figure could surpass 25,000 apartments and villas. Turkey’s real estate market offers attractive opportunities for buyers of all ages.
Reasons Foreigners Like Turkey’s Real Estate Market
1: Affordable Prices Before 2000, Turkey’s real estate industry struggled. Mortgages were unaffordable, and many homes were old and worn out. Modernizing mortgages and constructing new buildings have significantly improved the housing market, offering substantial potential for capital appreciation and appealing low prices for Western middle-class home buyers.
2: Improved Infrastructure Alongside modernizing properties, Turkey invested heavily in infrastructure, matching Western living standards. New home buyers now enjoy reliable electricity, well-maintained roads, efficient waste collection, and other modern amenities.
3: No Reciprocal Agreement Sales received a significant boost when the government dropped reciprocal agreements, allowing foreigners to buy homes in Turkey even if Turks couldn’t do so in their countries. This change attracted many Middle-Eastern buyers, further boosting sales.
4: Quick and Easy Buying Process Previously, the buying process for foreigners was lengthy and complicated. Now, a foreigner can buy an apartment or villa, receive the keys, and sign for the title deeds within a week. Many British buyers wish the process were as simple in the UK.
5: Tax Incentives and Citizenship Turkey offers excellent tax rates to foreigners. Previously, Turkey’s golden passport scheme required a property investment of 1 million USD for citizenship. The government has since lowered this requirement to 250,000 USD, making it one of the most affordable countries for obtaining citizenship through real estate investment.
6: Turkish Lira Exchange Rate The favorable exchange rate between the Turkish lira and other currencies has significantly boosted the market. With the lira currently hovering around 7 to the pound, many foreign investors see this as an opportunity to maximize their investment potential.
7: Cost of Living Turkey’s cost of living is generally lower than many foreign buyers’ home countries. For Brits, the absence of a TV license and low council tax rates are particularly appealing. While smokers, drinkers, and car owners might face higher costs, overall living expenses are manageable on a budget.
Advice for Buying Turkish Property
If you’re considering investing in Turkey’s real estate market, our buyers guide provides comprehensive information, from financing your purchase to moving in. We also offer advice on lifestyle issues like bringing pets or obtaining residency and work permits.
For any questions or to arrange a viewing trip, contact a local sales representative in one of our offices around the country. Our Turkish lifestyle blog also features more articles about living and buying property in Turkey.