How is the Real Estate Market in Turkey?

Property is a term that refers to anything that a person or a company has legal title to and that gives the owners certain enforceable rights over. Automobiles, industrial equipment, furniture, and real estate are examples of property, which can be tangible or intangible.

Turkey (Turkiye) is a wealthy country with lots of real estate properties. These properties which are sold in this sector are produced for both investments and to meet the need for shelter. Thus, this sector is constantly renewing itself and developing according to the need and demand.

Turkey is a very attractive country for foreigners in terms of tourism and entertainment opportunities. In addition, as a city famous for its history and fascinating beauty, Istanbul attracts investors from all over the world. This place, which has the distinction of being the only city where the continents of Europe and Asia meet, is also considered a paradise for real estate investments.

Foreign investors often buy real estate from Turkey (Turkiye) for investment, as the real estate currently in the market to be purchased are high value-added and profitable investments. The most important factor causing this is the decrease in real estate prices, namely the decrease in the Turkish lira. In this way, we must say that the purchased properties bring one hundred percent profit for the investors. In addition to the profit it provides, it is very easy to find the one that appeals to you as there is a wide variety of real estate projects in the market in Turkey.

What Factors Determine Property Prices in Turkey?

The real estate prices in Istanbul and the other cities are decided within the market by evaluating many different factors. These elements may also vary according to the purpose of use of the property, and also, these elements differ from country to country as they are evaluated with environmental effects.

• Geographical location: The city in which the real estate is located automatically affects the price of the building because house prices or rents are quite high in a cosmopolitan city like Istanbul due to the high population density and high demand.
• The location of the property in construction: Whether the real estate is an apartment, a complex or a residence affects both the market in which it is located and the price of the real estate itself. Besides it also affects the apartment’s view.
• Property type: There are many types of real estate in Turkey (Turkiye), these prices vary depending on the demand. For example, the high demand for villa-type houses in Turkey causes their prices to increase. In this context, since there is demand for commercial buildings, the price increases directly.
• The quality of the materials used for dressing and finishing: The type of materials used inside the building, plasters, and insulations is one of the most important factors in determining the price of the real estate since it shows us the quality of the building.
• Property Age: The age of the property, along with its location, affect its price. On the other hand, although some properties are older, they can be quite expensive due to their historical structure and durability.

What will Real Estate Prices be like in 2024 in Turkey?

The average housing price in Turkey (Turkiye) is currently around 22,000 TL ($820) per square meter. However, real estate prices in Istanbul have increased by 3.5% in the last month, with an average price of 28,000 TL ($1,045) per square meter. Thus, the prices for a 100-square-meter house in Istanbul now range between $110,000 and $900,000, depending on the location and quality of the property.

This price remains attractive to foreign investors. According to official data for this year, house sales to foreign investors, especially Iranians, Russians, and buyers from Gulf countries, reached an all-time high of 7,500 houses last month. This suggests that if 2024 follows a similar trend, the real estate market will continue to be highly active with foreign investors.

Can Real Estate be Purchased from the Turkish Market?

Foreigners are buying real estate in Turkey more than ever before.  The sale prices of real estate are currently waiting to be sold in the market in Istanbul are among the lowest of real estate in Asia, and the Turkish government also encourages foreigners to invest. That's why foreigners who want to invest their money want to have property in Turkey.

If you are asking whether you can invest in Turkey and buy a property, all you need is the investment you want or the sale fee of the property. You do not need to meet certain requirements, such as being a citizen, to purchase a property. You can have different-style houses and villas with Istanbul Property privilege.

Is Turkey a Good Place to Buy a Property?

A paradise from east to west, Turkey is an incredible country with 81 provinces and seven geographical regions. The 36th largest country in the world, Turkey has lots of property options such as a seaside villa, a cozy apartment, or a luxury penthouse.

If you are considering buying a property in Turkey, there is a wide selection of real estate to suit all tastes and budgets. Here are other features that make Turkey a great place for investment:

• Current Exchange Rate
• Cost of Living in Turkey
• Citizenship by Investment Scheme
• Modern Property Architecture
• Easy and Safe Buying Process

What Types of Real Estate Can be Purchased in Turkey?

One of the reasons why foreign investors prefer Turkey is the variety of Commercial properties and houses in the real estate market. In this market, where there are many different types and structures of real estate that appeal to every budget and taste, anyone can pay the sale price and provide as many sessions as they want.

The types of structures that are currently being sold in the real estate market are listed below.

• Studio apartment
• Ground floor apartment
• Penthouse
• Residence apartment
• Villa
• Duplex apartment

How to Rent a Real Estate in Turkey After Buying?

Everybody who owns a property can rent out that purchased property. Either you or a real estate agent you agreed with can complete the transactions more easily. If you are planning to rent out your property long-term, it is better to use real estate company services because it may be best to visit an attorney to assist you every step of the way, especially when drafting a contract. Agreeing with a real estate agent on this issue also provides you with a complete property maintenance service.

What are the Real Estate Rents Like in Turkey?

The real estate market in Turkey is the sector with the most important market area in the country. In addition to the houses for sale, the real estate market also has many rental housing options. These rental houses are offered to the tenants in two different ways, both furnished and unfurnished, which of course also affects the rent to be paid. In addition, the tenant who wants to rent a house has to pay both the rent and the deposit. Thus if the tenant does not make any damage to the house, it can be covered by the landlord with this deposit later on.

Due to the fluctuations in the market across Turkey, rents have increased tremendously in recent months. However, despite the high prices, there is still strong demand in the property market.

What are the Advantages of Buying Real Estate in Turkey?

It has been popular for many years for foreigners to purchase real estate from Turkey (Turkiye). However, especially in recent years, it has increased even more to benefit from favorable prices due to changing exchange rates, Turkish citizenship incentives, and advantageous situations such as business support and fund assistance. Buying real estate in Turkey offers you a magical atmosphere with its different nature and life in 7 regions of Turkey. For example, the house you will buy in a city by the sea will offer you more holiday opportunities, while the buildings that you will buy from cosmopolitans such as Istanbul and Ankara will bring you high income.

The advantages of buying real estate in Turkey are as follows:

1. Real Estate in Turkey is Cheap.

The real estate market in Turkey (Turkiye) is late to enter the international market, so low house prices are quickly attracting foreigners of many different nationalities. The low prices that the properties have allowed many customers to purchase the property directly without a mortgage or bank loan. Another reason why these real estates do not come cheap to foreign investors is the value of the lira, which is the currency of Turkey, against the dollar.

2. You can get Turkish Citizenship.

According to the laws of the Republic of Turkey, citizenship is offered to foreign entrepreneurs who purchase real estate for investment purposes in Turkey. Of course, to have Turkish citizenship, a few certain rules must be fulfilled.

The first rule of applying for citizenship is to buy a property in Turkey with a value of $400,000 or more. Also, you can apply for citizenship whenever you may want to open a business in Turkey (Turkiye) however, you must have 500 thousand dollars in your bank account to prove that wish besides having a workplace.

3. Turkey's Cities Are Safe.

Turkey carries out a very careful state policy in terms of ensuring the safety of both its citizens and foreigners with the police, gendarmerie, and guard organizations it has established, so it can be a safe choice for you with peace of mind.

Are Property Prices Falling in Turkey?

No, contrarily the property prices are increased. KFE, which increased by 5.4 percent in October 2024 compared to the previous month, and compared to the same month of the previous year in nominal terms, increased by 188.2 percent, and in real terms by 56.3 percent. The quality of houses in Turkey effect-free price in order to monitor their changes calculated Housing Price Index (KFE), in October 2024, by 5.4 percent compared to the previous month increased the level of 605.8 it has been realized. Also, compared to the same month of the previous year KFE increased by 188.2%, the same 56.3 percent in real terms during the period the rate has increased. Housing in Istanbul, Ankara, and Izmir developments in price indices when evaluated, the year 2024, in October compared to the previous month, respectively an increase of 4.7, 5.3, and 6.2 percent has been observed. Index values are compared to the same month of the previous year, Istanbul, In Ankara, and Izmir, respectively, the percentage at the rates of 204.6, 194.1, and 186.4 has shown an increase.