Real estate in Turkey figures and facts

“The real estate market in Turkey” is not a simple word, and also it never comes from the nothing, and it doesn't just mean investments worth billions of dollars, it means a strong infrastructure that was established to accommodate the flowing local and foreign investments targeted by the Turkish state headed by Recep Tayyip Erdogan nearly 17 years ago from 2004, and it also means reforming and structuring some of investment laws, it means working over years to win the confidence of the investors to convince them transferring their investments from other countries such as London, France and Dubai, a word that means working in all sectors tourism, industrial and commercial sectors to make a qualitative move in the Turkish society and economy, it means working on Analyzing its performance year after year to avoid any negativity during reforming process, it works to improve its economic performance in an attempt to satisfy current investors and attract more foreign investments.

In the past ten years, Turkey has become a center for attracting foreign investments in all fields, commercial and industrial, and also in the field of construction. Istanbul has become one of the most important promising markets in the region, and Turkey has ranked seventh in the world as one of the strongest emerging markets.

The components of the Turkish state

Turkey has several elements that were its main base that government invested to make the best use it, to reach to its aims, including its geographical location, touristic attractions, charming nature and other factors that was very useful for Turkish state.

Strategic location

Turkey has an important strategic location, as Turkey is the meeting point of Europe and Asia, because of its extending borders across the two continents, and it is an entry point for the transit of global trade to Europe, thanks to the Bosphorus Strait that connects the Black Sea and ​​Marmara sea, and it is a linking point between Europe and Middle East countries, in addition to its proximity to many important countries, including Greece, Bulgaria, Azerbaijan, and Georgia, and the Black Sea separates it from Russia and Ukraine. The factors that made Turkey at the top lists of the global economy because of the great trade and exchange possibilities offered by its location pushed the Turkish economy to rise up.

Infrastructure

To build a strong economy, there must be a strong infrastructure started from the road and transportation network, the service sector such as sanitation, a strong communications network and the mechanization of all provided services, which is what Turkey has done, as it continues to develop all service sectors, especially the road and transportation sector and communications sector, Within a short period, it was able to extend a metro network that is the strongest of its kind in Europe, and Turkey was able to complete projects in the transportation sector with a total value of more than 150 billion liras (26 billion dollars), in addition to the telecommunications sector and the Internet and linking the state and its services to citizens through Internet, the process that called E-government, which eases for its citizens to make their interests through electronic services, which was reflected in the standard of living and well-being of citizens.

The nature

Turkey has beautiful natural and climate, as it is a marine country whose borders extend to Mediterranean Sea, Black Sea, as well as Marmara Sea, and therefore it has charming natural sea views, on the other hand, it is characterized by amazing nature, and vast grassed lands extend throughout, the nature that makes tourists enjoy the beauty of Sea, and the quiet of countryside nature.

Touristic monuments

Turkey is rich and full of touristic attractions, including Roman monuments, as Constantinople was the capital of the Byzantine Empire, in addition to the Islamic monuments because of the Ottoman Empire, which was reflected in the palaces, mosques and other tourist monuments, which made it the center of a touristic attraction and a global touristic destination.

Turkey's economic and legislative reforms

Turkey has made many economic and legislative reforms to enable it to attract foreign capital and create an economic and investment environment for foreigners, as the government made reforms in investment laws, that’s why Turkish government issued many laws that encouraging investment, especially the laws of real estate investment in Turkey, particularly that related to obtain citizenship.

In 2018, Turkish government issued a presidential decree reforming the law of Turkish citizenship, and the text of the law of obtaining citizenship through investment was amended in April 2018, as Turkish President Recep Tayyip Erdogan announced through Resolution No. 106, which states “In accordance with Article 46 of the Turkish Citizenship Law No. 5901, an amendment decision was made to implement Law No. 139/2010, issued on February 11, 2010, regarding granting Turkish citizenship by amending the condition for depositing money as a fixed deposit in a Turkish bank to be worth 500 thousand dollars Or their equivalent in Turkish lira instead of $2 million or their equivalent in Turkish lira.

The decision also stipulates that the foreigner or investor has the right to obtain Turkish citizenship in case of buying a property worth 250 thousand dollars instead of one million US dollars, provided that the property is kept and not disposed for a period of no less than 3 years, and according to the law, the investor is entitled to obtain citizenship for himself and his wife, and for his children under the age of 18.

Real estate investment in Turkey

What distinguishes the Turkish real estate market?

One of the most important features of the Turkish real estate market is that it is an emerging and strong market, it is the second most active and strongest construction market in the world, and Turkey has been ranked as fourth among the top ten real estate investment countries in the world because of its infrastructure, and thanks to the government facilities it provides to foreigners wishing to own property, and because of Turkey's geographical location also plays a major role in making it a destination for foreign investments. Recently Turkish construction sector has witnessed extensive growth, so high rates of real estate sales have been recorded in Turkey by foreign investors.

Advantages of buying a property in Turkey

• Obtaining a real estate permit residence in Turkey.
• The possibility of obtaining Turkish citizenship if the property price is 250 thousand dollars or higher.
• Investor can live in a safe, comfortable and beautiful place.
• An increasing income through investment, thanks to strength of tourism in Turkey, where the possibility of renting apartments during the multiple touristic seasons most of the year.
• Combining living in a rapidly developing place as Europe and keeping at the same time the scent of oriental customs.
• The cost of living in Turkey is low compared to Europe and the countries of the region, with the high quality of agricultural crops and its availability throughout the year.
• The stability of life in Turkey compared to the surrounding and regional countries.
• There are international schools that allow foreign communities to complete their education, whether American, French, Iraqi, Libyan and others, as well as the possibility of joining your children in Turkish schools and universities.

Real estate prices in Turkey

Real estate prices in Turkey varies, and there are great differences in prices from one city to another, and prices vary from one region to another in the same city, so we have to explain to you the factors that control the price of real estate in Turkey

• The governorate or city that you want to buy a property, real estate prices in Istanbul are completely different from prices of another city such as Mardin. The urban and coastal cities are much more expensive than the countryside ones.
• Type of property itself, is it an apartment, a villa, or a shop, also is the property within a residential complex with social services, or just an apartment in a normal building.
• The area in where the property is located, even if it is in the same city. Touristic areas that tourists visit throughout the year are more expensive than other areas, or the investment areas that many multi-national companies’ headquarters based in are more expensive than those areas on the outskirts of the city.
• The distance of the area from the city center or its proximity to the center, one of the determinants of real estate price.
• The services of the area and its proximity to transportation and metro stations.
• The proximity of the area to the sea and green spaces. The coastal areas have their fans, and the more the property is close to the sea or the green natural parks, the higher price of the property is.

Therefore, Turkey is characterized by diversity in types of properties, the diversity that contributed to satisfy and meet all the needs of the investors whose coming for the purpose investment or living, for all different social classes, and there are flexible payment methods suitable for investors, whether cash payment or installments over periods start from 6 months to 5 years.

Why investors buy real estate in Turkey

Real estate prices in Turkey are cheap compared to other European cities, as you can get an apartment with an amazing view at a lower price than other European cities.

• Turkish government's interest in real estate investment and pumping investments in the field of construction.
• Diversity of types of houses in Turkey, as the real estate market in Turkey includes plenty of options that suit all tastes and social classes, thus ensuring that you will find what fits you.
• Obtaining Turkish citizenship, especially after the Turkish government in 2018 modified the investment laws to obtain citizenship, including investing in real estate, so that everyone who buys a property worth 250 thousand dollars after it was one million dollars, and therefore real estate investment, in Turkey in general and in Istanbul in particular, is considered one of the most successful investments.
• Turkey has a huge investment portfolio. Over the past decade, Turkey has been able to have a strong reputation in real estate market and which has led to the strengthening of the real estate portfolio in Turkey.
• Real estate investment is profitable and has an increasing return in the long term, especially for those looking for a long-term investment, and it has the ability to provide a profitable return, whether in the short or long term, especially since Turkey lives political and social stability compared to the surrounding countries at the region, Experts often recommend that real estate is the best long-term investment.
• Ease the process of real estate purchasing for investors and foreigners, as the Turkish government did not place restrictions at the purchase of real estate for the foreigner, but through a photo of the passport and the issuing a tax number. You can buy a property without been asked for the source of the money as some countries do, and from time to time the authorities review and simplify the purchasing process to attract investment in the real estate market from abroad for those who are interested in owning a property in Turkey.

How to buy a property in Turkey

• At first foreigner should ask for the assistance of trusted real estate agency to help him choose the suitable property and the best area and provide real estate advice to the client, which is an important step for the investor and he must choose a good real estate agency known for its integrity and credibility, because since the role of real estate agencies are no longer limited to providing advice only, but provides their clients many services, including purchasing real estate and following up all legal procedures because it has a number of lawyers who follow all legal procedures and are keen on the rights of the client and ensure that he is not exposed to fraud and deception.
• The foreigner must specify the type of property he wants, whether it is an apartment, villa, land or commercial store, and also specify the specifications of the property in terms of area and number of rooms, whether it is within a residential project or a normal building, and also specify the city in which the investor wants to live first.
• Determining the budget or setting an approximate budget of purchasing, which helps the real estate consultant greatly to select the right property for the buyer in light of the large price discrepancy between one region and another.
• Starting field visits to several projects and seeing the real estate locations, in order to ensure that all the specifications you want in the property are available and meet.
• Issuing the tax number for the foreigner, this number eases government procedures for the client, and it is necessary to complete the purchase of real estate in Turkey.
• Opening a bank account in a Turkish bank, in order to transfer money to it from the buyer's country, as it is required that the purchase be made by bank transection.
• Signing contract between the buyer and the construction company that developing the property, and this contract is written in both Turkish and English languages, and then client should pay about 5-10% of the property value as a down payment in advance to reserve the unit he wants.

Required documents to buy a property in Turkey

• A copy of the buyer's passport, translated and certified by the notary.
• Two personal photos.
• A copy of the original title deed of the property before transferring it to the buyer's ownership.
• Paying the real estate tax, its about 4% of the property value, should be paid to the state, which is to transfer the ownership of the property from the seller to the investor, and it is paid only once.

The best areas to buy a property in Turkey

The answer of this question depends on the specifications of the property that the foreigner wants to buy and also according to the purpose of buying, whether for investment or for living, but in all cases, what distinguishes the real estate market in Turkey is that whether for living or investment, it has a rental return income and is easy to rent and invest in one way or another, and on all we will try to arrange the regions according to the purpose of the purchase:

A- Investment areas

• There are commercial and investment areas in the first place, such as the Maslak district in Istanbul, as well as Basin Express district, and these are investment areas because of most of headquarters of international multinational companies’ base in one of these areas.
• There are investment areas due to the speed of renting there, such as the touristic areas in Istanbul, such as Sisli, Taksim and Fatih areas.

B-Residential areas

Also, there are perfect areas for living, such as Beylikdüzü, Avcilar and Esnyurt, and there are some areas mixing both purposes residential areas and investment areas such as the new areas targeted by the state such as Basaksehir, Bahcesehir, Bakirkoy and all these areas in Istanbul.

Real estate purchase statistics in Turkey

The data of the Turkish Statistical Authority shows an increase in real estate sales to foreigners over the past five years from 2016 to 2021, with the exception of 2020, when the percentage of sales decreased by 10% as a result of the Corona pandemic.

Iranians are at the top of the list of nationalities buying real estates in Turkey, followed by the Iraqis and then the Russians. Iranian nationality topped the purchases of residential real estate in Turkey during the year 2021, with a total of 7,189 properties, up from 5,423 properties in 2019.

Iraqis ranked second globally and first in the Arab world, the Iraqi nationality came with a total of 6,674 properties during the past year 2021, compared to 7,596 properties sold in the previous year 2020.

While the Russian nationality ranked third in the world with a total of 3,078 properties during the past year, up from 2,893 units in 2019.

And there were 8 Arab countries in the list of the top 20 nationalities around the world buying residential real estate in Turkey, that purchased 13,260 properties in 2020, including: Iraq, Yemen, Jordan, Kuwait, Palestine, Egypt, Lebanon and Saudi Arabia, so Iraqis topped the rest of foreign nationalities in buying real estate in Turkey, by 30,209 during the same period. The Iranians came in second place with total 15,083, then the Saudis with 13,296, the Russians with 11,228, and the Kuwaitis with 10,137.

China and the United States

China recently entered the list of the most popular nationalities to buy real estate in Turkey since 2020, and China is one of the largest investors in the real estate market in the world. Americans also entered the real estate market in Turkey, especially Americans of Arab origin, and according to experts, Americans' interest in buying real estate In Turkey, it increased by 200% with the outbreak of the Corona pandemic, in addition to the increased demand for buying real estate in Turkey by citizens of Britain, Pakistan and Kazakhstan.

Number of American investors in real estate in Turkey increased by 115.2% in 2021 compared to the previous year 2020, according to Turkish press reports, and official data.

Reports indicated that total real estate sales to foreigners increased by 43.5% in 2021 year, to become the total real estate sales to 58,576, according to an Anadolu Agency report based on Turkish Statistical Institute data.

The number of sold houses in Turkey to foreign investors for whom are holding a US passport increased by more than twice the usual rate, to reach the total sold housing units to 1,416 units purchased by Americans in Turkey, compared to 658 units in 2020, the report said.

Most of the real estate investors are Muslim with American citizenship who immigrated to the United States to live there and they established their businesses there, and now are looking for alternative homes, noting that most of them are of Arab origin, and other from Pakistan and India.

Data from the General Directorate of Land Registry of the Turkish Ministry of Environment, Urban Planning and Climate Change revealed that Turkey witnessed the sale of about 2.8 million properties, during the first 11 months of 2021.

Real estate sales in Turkey achieved remarkable growth during the first 11 months of 2021, while the growth rate reached 22% during November 2021, which witnessed 357,446 real estate sales, after this number was 291,853 in October 2021.

During the period between January and November 2021, the total real estate sales in Turkey amounted to 2,768,262 transactions, according to government media.

Statistics show that real estate sales throughout Turkey increased by 25.1% in January 2022 compared to the same month in the previous year 2021, and real estate sales reached 88,306 apartments.

In a statement, the Turkish Statistics Authority stated that home sales to foreigners in Turkey increased by 56.5% in January 2022, compared to the same period in the previous year, when 4,186 properties were sold in January 2022.

Istanbul has the lion’s share, it comes at the top of the list in Turkish cities in the highest selling of properties, with real estate sales reaching 15,110, with a percentage of 17.1% of the total properties sold throughout Turkey, followed by Ankara with 8 thousand 255 sales and a share of 9.3%, then Izmir with 5 thousand 486 sales and a share of 6.2% of the total real estate sales in Turkey.

The authority explained that Iranians ranked first in terms of buying properties in Turkey during this period, explaining that Istanbul came in the first place, as the number of real estate sales in it reached to 1771 houses, then Antalya with 914, and Ankara with 269, and the authority revealed that apartments are issued a real estate sales list during this period, followed by agricultural land.

On the other hand, Turkish Statistics Authority revealed, last November 2021, the amount real estate sales to foreigners in the country. From January to October 2021, the total real estate sales to foreigners amounted to nearly 43,372 properties, with a growth rate of 38%, compared to the same period of the year 2020, which recorded the sale of 31,423 properties throughout Turkey between January and October of the year 2020.

Istanbul and Antalya top the list of Turkish cities that sell real estate to foreigners, as they acquired during the first 10 months of 2021, according to the data of the Turkish Statistics Authority. During the mentioned period, Istanbul witnessed the sale of 14,424 properties to foreigners, while Antalya sold 6,53 properties, bringing the total real estate sold to foreigners in the two states, 65.2 % of the total sales of Turkey.

Ankara ranked in third place at the same list, with two thousand and 176 properties, followed by Bursa (West) with 1068 properties.

One of the reasons That Istanbul is a preferable city for investors that it is the touristic and economic capital of Turkey. It is the first tourism and investment destination for foreigners. It is also characterized as one of the most populated European cities, and the Turkish government gives it increasing interest in infrastructure development, to implement the most important projects such as the new Istanbul Airport and the Canal of Istanbul, which is being completed, as well as dozens of huge medical, educational and economic projects, all of which made Istanbul one of the most important real estate investment destinations in the world.

Real estate sales to foreigners in Istanbul reached 61,734, or 39.8% of the total 154,871 sales of homes across Turkey, followed by Antalya with 32,061, Bursa with 8904, Yalova with 6813, the capital Ankara with 7856, and Sakarya with 4769.

At Ramzy Real Estate Company, we are glad to accompany you on the journey of buying property in Turkey and to provide you with a range of services to make the process smooth and easy , as we are always keen to present a variety of options for residential and investment properties in addition to helping you obtain Turkish citizenship for those looking for it.
Our services:
- Legal advice .
- Property Management.
- After-sales services .
- Legal services and obtaining Turkish citizenship.
- Buying and selling real estate in Turkey.
- For more details, you can contact us via the communication platforms or via the WhatsApp attached on the site.

Editing by Ramzy Real Estate Team ©

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