Istanbul Property: Your Real Estate Company and Expert
Founded in 2009, Istanbul Property is a market leader real estate agency based in Turkey. With a team of highly qualified experts, Istanbul Property is offering a wide range of services including property selling, online sale, online consultancy, presentations and field visits, after-sale, and legal services. Trusted by numerous clients, Istanbul Property guarantees 100% client satisfaction and is committed to providing professional services that exceed your expectations for more than 13 years. Istanbul Property also aspires to make Turkey the number one real estate destination for buyers and investors from around the world, with the help of positive referrals from loyal clients. Istanbul Property, Turkey’s safest real estate company, sells many houses per year. Real estate can be bought with Istanbul Property as it offers a reliable, stress-free, and easy experience for its clients.
What to Know Before Buying Real Estate in Turkey?
Buying real estate in Turkey comes with a list of things to know before taking action. The details of things to know before buying real estate in Turkey are explained below.
- Understanding property rights in Turkey: Knowing property rights before buying property in Turkey is important from the start. Nationalities of 183 countries and corporations have a right to buy and own immovable property in Turkey. Immovable property can be purchased as land or as separate pieces of real estate, such as offices, apartments, and shops, which are subject to condominium rights (“kat mulkiyeti” in Turkish). An official transfer deed written by a title deed officer and registered with the title deed office is required for the acquisition of title to real property. Individuals must be nationals of one of the nations on the white list. For more information, foreigners interested in purchasing real estate in Turkey can contact Istanbul Property, Turkish embassies, and consulates, as well as the General Directorate of Land Registry and title deed offices.
- Ways to obtain Turkish Citizenship: Buying real estate in Turkey comes with benefits such as obtaining Turkish citizenship. For example, buying a property worth at least $400,000 grants Turkish citizenship.
- Know the property buying process: Knowing the process of buying property in Turkey will create a clear image in your head when identifying your needs for real estate. The buying process is simple in Turkey. Some of the important things to consider while buying property are real estate type and location, investment returns, project options, and additional costs in the process.
- Choose a trustworthy real estate agent: Working with the right real estate agent is vital before buying real estate in Turkey. A reliable agent must understand your requirements, offer a wide range of projects, and provide high-quality services to make the process hassle-free.
What are the Features of Real Estate in Turkey?
Real estate features are a set of details that identify the property. In Turkey, real estate features can be divided into two sections. These are residential complexes and commercial real estate. A residential complex is a building or a group of buildings containing living units, providing shared spaces, social facilities, and services to its residents. Commercial real estate can be named shopping malls, offices, industrial properties, and manufacturing facilities. Commercial properties provide great investment opportunities and rental incomes apart from operating a business.
What are the Real Estate Types in Turkey?
Real estate types in Turkey are identified as apartments, residences, villas, and offices. Knowing the types of real estate will assist you in selecting the ideal property for your budget and needs. Real estates for sale in Turkey, especially in locations like Istanbul, Antalya, and Alanya come with numerous features aimed to maximize buyer satisfaction. Apartments are situated in multi-story buildings and skyscrapers. While regular apartments have from two rooms to six rooms, studio apartments only have one room. Luxury apartments are classified as duplexes, triplexes, and penthouses. A duplex is combining two apartments on top of each other, connected by a staircase. A triplex is similar to a duplex with an additional floor on top of it. Penthouse apartments are commonly located on higher floors of a building that provide panoramic views of the surroundings. Residences are multi-story structures that feature modern-style homes with reception and security available 24/7. Residences are built for the comfort of a hotel, offering valet, housekeeping, fitness, and car wash services. A villa is a one-level, two-story, or three-story structure, often with a garden and swimming pool. Villas may share walls but they are separate units that are considered independent housing. In Turkey, offices can be found in commercial units or skyscrapers. Modern and luxurious offices are located in the heart of cities as they are surrounded by main transportation hubs, hospitals, malls, and education centers.
What are Real Estate Prices in Turkey?
The real estate market in Turkey is experiencing dynamic growth day by day. The rising demand for real estate, which is being fueled by the increasing number of construction developments, creates world-class quality standards. According to the statistics provided by the Central Bank of the Republic of Turkey, the housing index in Turkey grew to 165.50 points in March from 161.70 points in February of 2021. While the prices of property sales have climbed by 31.68% in 2020, the average size of properties is around 130 m2 and the average m2 price is $1,920. Real estate prices in Turkey vary depending on the property type, features, and location. Apartment prices range between $130,000 and $1.000.000 or more. The average price of a property is $300,000 in Istanbul, Turkey, $300,000 in Antalya, and $150,000 in Alanya. Villa prices start from $600,000 and go up to $5.000.000. The average price of a villa real estate in Bodrum, Turkey is $600,000. On the other hand, commercial units such as offices cost between $300.000 and $3,345,000. The real estate prices in Turkey are determined according to the following factors.
- Location: Real estate location is the top reason that determines the price. The more upscale the location, the higher the price. A location near public transportation is likely to be more expensive than one in a remote location.
- Real estate size and features: The size and the features of the real estate and the facilities offered in the complex are important details that determine the price of real estate.
- Real estate view: Another important factor that affects the real estate price in Turkey is the view of the property. While a property with a sea view is the most valuable, other views such as the green landscape or panoramic city have a significant impact on pricing.
How Much Are Property Taxes in Turkey?
Property tax is a type of tax imposed on property owned by an individual or a corporation. Property tax is set by the local government in the area where the property is located and the property owner is responsible for paying it. In Turkey, property tax is 2% and must be paid by both the buyer and the seller when the property is sold. These fees (which amount to 4% of the purchase price) are based on a property evaluation report prepared by a real estate appraiser. The evaluation report declares the property value and is only valid for three months. The report should be delivered to the title deed office. The property’s claimed worth cannot be lower than the tax value, which is also used as the base for the local property tax. There is a 0.948% stamp duty of the value stated on the sale agreement. If the apartment in Turkey is less than 150 square meters, the VAT rate is 1%. Apartments classified as luxurious in metropolitan areas are expected to pay 8% or 18% VAT. Apartments located within a metropolitan area must pay 0.2% in annual property taxes. Properties located outside of a metropolitan area are subject to a 0.1% tax. For commercial properties, the annual real estate tax is 0.4% in big cities and 0.2% in small cities. The first and second installments of local property tax are payable in May and November. You can contact your local municipality for more information and payment alternatives.
How Much Property is Bought Every Year from Turkey?
Buying property in Turkey several factors affect the number of property sales in Turkey each year. It is expected that changing conditions will have varied results over time. The economic position in Turkey, the turbulence in stock and global markets, as well as the pandemic, are all important issues to address. According to the Turkish Statistics Institute, 50,735 houses were sold in total to foreigners in 2021. Istanbul is ranked first with 23,169 real estate sales to foreigners in 2021. Istanbul was followed by Antalya with 10,557 sales, Ankara with 3,183 sales, Mersin with 2,213 sales, Bursa with 1,435 sales, Izmir with 1,171 sales, and Sakarya with 1,062 sales.
How to Buy Real Estate in Turkey?
Buying real estate in another country is a significant lifestyle and investment decision and luckily, it is relatively a simple process in Turkey. Below, you can find the detailed steps for buying a real estate investment in Turkey.
- Conduct research: The Turkish real estate market is expanding rapidly. Start the buying process by performing thorough research. There are numerous residential and commercial units for sale in multiple locations in Turkey.
- Find a trustworthy real estate agent: Before beginning the buying process, it is critical to choose a reputable real estate agent. Agents with a long background in the market are more likely to be trustworthy. The agent you work with must have the required experience and skills to meet your demands. Even though there are other real estate firms, when it comes to real estate investment with the help of a reputable and trustworthy agent, real estate can be bought with Istanbul Property safely and easily.
- Travel to Turkey: Taking a trip to Turkey to check the properties is a good idea. Before buying real estate, you should learn about the location, understand the neighborhoods, and know the surrounding areas. You should look into every alternative as much as possible.
- Negotiate the purchase price and terms: You can negotiate the price and terms of a property, then reserve and freeze the price. You can get legal assistance from a lawyer at any time during this procedure.
- Payment stage: Several Turkish banks provide mortgages to foreigners interested in buying real estate in Turkey. Appoint a solicitor to complete the transaction using a power of attorney.
- Obtain your Turkish title deed (TAPU): The final step is to receive your Turkish TAPU. Once all of the paperwork and contractual requirements on both sides have been fulfilled, the real estate will be registered on your behalf and you will receive the title deed (TAPU) for your new property in Turkey.
Foreigners interested in purchasing real estate in Turkey should be aware of the following conditions:
- Foreign nationals can only purchase a total of 30 hectares of land in Turkey, with only limited rights.
- In military restricted zones and security zones, foreigners are prohibited from purchasing or renting property.
- Foreign nationals may acquire property or a limited right in a district/town up to 10% of the total area of the district/town.
What are the Conditions for Buying Real Estate in Turkey?
Foreigners are allowed to buy land and real estate in Turkey in their names as long as the properties are in cities and towns. Real estate in villages or rural areas and military zones are exempt. To get the property’s title, an application must be presented to the local Land Registry Office where the property is located. The Land Registry Office transfers the title after conducting the appropriate searches and verification for the requirements mentioned above. The paperwork related to the transfer of the total purchase price in Turkey must be given to the Land Registry Office. During the transaction, a 2% real estate tax (title deed fee) is owed and collected from both the buyer and the seller. For the first five years, newly constructed properties are exempt from paying annual property taxes. For tax purposes, all real estates are subject to reappraisal every five years. The real estate can be resold or rented out, with the revenues being moved out of Turkey. When real estate is purchased for business purposes, different rules apply. Article 35 of the Turkish Constitution defines ownership. This article states that everyone has the right to own anything and these rights can only be limited by other legal restrictions. These may include zoning schemes, limits on foreigners, and other restrictions. Article 633 of the Turkish Civil Code lays out the rules of ownership. This mostly clarifies the process of acquiring ownership. The registration of the land is very crucial when a foreign individual buys real estate. In Turkey, the Land Registry Department has regional directorates that are subdivided into province or district offices and are all under governmental administration. In general, foreigners are not subject to any legal restrictions when it comes to property ownership. The Village Act, as well as the Military Prohibited and Security Areas, play an essential role; Article 87 of the Village Act forbids foreigners the right to acquire property outside of a village’s center if the cadastral division has not yet been completed or if it belongs to the Ministry of Forest. Furthermore, the statute regulating Military Prohibited and Security Locations might be a barrier, limiting foreigners’ ability to buy real estate within a certain distance of military stations or strategically vital areas.
When to Buy Real Estate in Turkey?
Whether you are buying property for investment, operating a business, or a house to live in, it’s best to know the best times to buy real estate in Turkey. Although there is no specific answer to this question since it varies depending on the city, location, and property type, knowing the key points will be helpful for the buying process. Spring is the top season when the real estate market is busy. March, April, and May are usually the best months to do renovation in the house and move in. Spring is the ideal time to buy real estate in Turkey, even though the prices may rise due to competition. For more affordable property options, winter is the best season to buy real estate in Turkey since house sales are quite low, meaning cheaper prices for real estate. The end of the year is usually a good time to research residential and commercial projects and buy real estate in Turkey, as many construction companies announce advantageous campaigns during this time of the year. The economic conditions and fluctuation in the foreign exchange markets of Turkey directly impact the real estate market. It’s best to follow economic trends by the changes in real estate prices. Regions that are under construction developments are worth following for investment purposes. For instance, if a public transportation hub is being constructed nearby the property, then the price of real estate in that region is likely to rise in the future. Knowing the area and its projects well and following the developments up close could end up as a smart investment. Another good time to buy real estate in Turkey is when mortgage rates are low. You can compare loans with various banks and choose the one that works best for your budget.
Where is the Best Place to Buy Property in Turkey?
Knowing the popular locations before buying property in Turkey can be helpful before deciding where to buy real estate. Here is a list of all the best places to buy property in Turkey.
Who can Buy Real Estate in Turkey?
Foreigners can buy real estate in Turkey which applies to almost every nationality in the world. Foreigners from North Korea, Cuba, Nigeria, Syria, and Armenia are the only countries that are prohibited from buying property in Turkey. Certain restrictions apply to citizens of Jordan, Israel, Fiji, and East Timor for buying real estate in Turkey.
Foreigners from Russia and Ukraine are excluded from buying property along the Black Sea coast in Turkey. Greek citizens can’t buy real estate on Turkey’s Black Sea coast and in some Aegean provinces. A few regulations apply to the type of property for citizens from 31 countries. Moroccans, Latvians, and Egyptians, for example, are unable to purchase agricultural land in Turkey. Afghan citizens are unable to own agricultural land in Turkey and must seek a permit to buy other types of real estate. Albanian nationals can only buy office and residential property in Turkey.
Foreigners who buy a property worth at least $400.000 in Turkey have a right to obtain Turkish citizenship and can use the benefits of owning a Turkish passport around the globe. Foreigners can become Turkish citizens in six months.
What are the Advantages of Buying Real Estate in Turkey?
The real estate market in Turkey is rapidly growing. Foreigners from various countries are continuing the trend of buying real estate in Turkey and joining other investors, businessmen, working professionals, and families who are happy and satisfied property owners in Turkey. The advantages of buying real estate in Turkey are listed below.
- Turkish Residency and Citizenship: Any foreigner who buys a property for $400.000 in Turkey is eligible to apply for Turkish citizenship and acquire a passport that can be used anywhere in the world. Foreigners can become Turkish citizens in six months. Residency permits will be granted to foreigners once they buy a property in Turkey, including their spouses and children under the age of 18.
- Cost of Living: Turkey’s living costs are significantly cheaper than European countries. In comparison to other countries, electricity and gas bills, taxes, groceries, maintenance fees, and transportation costs are quite low. With the addition of currency exchange advantage, foreigners can enjoy a low cost of living in Turkey.
- Value for Money: It is common knowledge that buying a home in Europe is expensive. Turkey offers the greatest standard of life a residential complex can offer, as well as a wide range of homes at the most affordable costs.
- Low Property Taxes: Turkey is becoming more accessible to foreigners who want to buy real estate in the country as the tax regulations become by international norms. Because tax rates are calculated based on the value of the property, buying real estate in Turkey will result in affordable tax payments.
- High Return on Profit: Buying a property in Turkey is a wise investment. With a well-developed real estate market and potential developments all around the country, Turkey is one of the best and safest countries for long-term investment. Every year, real estate prices rise, allowing the owner to resell the property for a high profit. Furthermore, a high rental return is an additional source of income for the owner.
- Turkey’s Location: The country is surrounded by the Mediterranean Sea, the Aegean Sea, the Black Sea, and the Marmara Sea, with a coastline of 8,000 kilometers. Turkey is not only great for buying sea view apartments but also the stunning natural landscape and historical background make every location in Turkey interesting to buy a property.
- Climate: You can expect lots of sunshine in every part of the country. The Mediterranean climate can be found in the south of Turkey where the temperature is 30°C in the summer, but it hardly drops below 9°C in the winter and snow is rare.
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