Turkey is one of the top growing economies in the world and one of the most attractive countries for foreign investments. According to The World Investment Report 2019, the Foreign Direct Investment in Turkey has increased by 13 percent in 2019. Turkey is one of the top twenty economies of the globe with a GDP of 850 billion USD per year and is one of the top 10 tourist destinations in the world with more than 35 million tourists per year. Buying a property is an easy process and foreign investors need only their passports to buy a property in Turkey as Turkey allows property free holding for foreign investors. Taxes are applied in Turkey on different activities of money flow. Income tax and VAT tax are the most known and somehow the biggest in amount. For example, when buying a property the buyer has to pay VAT and Registry taxes and some other smaller fees (tax amount and percentage are calculated case wise). Turkish real estate market depends on the local demand in a higher percentage than the foreign demand, which means that the majority of the projects and developments are designed to comply with the features and specifications demanded locally. In September 2018, an alteration of the Immigration and Citizenship Law gave foreign investors the chance to apply and get Turkish citizenship when investing two hundred fifty thousand US dollars in real estate sector. Although Ankara is the capital of Turkey, Istanbul is the most important city of Turkey historically, economically, and even politically.
When discussing prices we need to specify a city, as price ranges are widely variable and various between different cities and different locations in the same city. For example, prices are different in Istanbul from those in Ankara or Izmir, and even in Istanbul, prices are variable from one location to another. Price/m2 range from 1.000 USD to 10.000 USD for instance from new developing areas to the center of the city. Sea view is surely a big factor affecting the price whereas if the property belongs to a brand new compound, this is also a major indicator increasing the price of the unit. If you are looking for a two bedroom apartment with two bathrooms with 125 m2 area, you can find a very good brand new property around 150.000 USD to 200.000 USD in good areas of Istanbul.
Based on your target budget, location of the property, which city, what payment plan, or the status of the property; you can choose to buy a residential property like apartment, penthouse, villa, pavilion or mansion. You can also buy a commercial property that would return you income and profit like office, shop, hotel apartment, store, building, or a land.
Many people are preferring to buy a residential property in Turkey for different reasons. Some people are choosing Turkey as a place for their retirement, and for this they might prefer to have a house or a villa by the sea or in nature. Some other people are influenced by Turkish culture and looking for a better, more peaceful or more affordable life, so they would prefer a city apartment for their families. While others might be trying to realize their dreams of living the prosperity that the imperial leaders had and stay in one of the luxurious mansion by the Bosphorus.
These types of properties are prepared to be used for business purposes. Investors prefer these types of properties as they are more profitable investments even though they are higher in price. When buying an office of the same size as an apartment, the price of the office will be higher, but it can obtain a higher rental income per year and eventually it will return its costs and start making profits in a shorter time. The situation is the same when buying shops. Hotel apartments are the type of commercial properties that may achieve the highest rental income among other types, and it’s more popular in tourist cities like Istanbul. Another type of commercial properties are lands, which can be a blank land, planted, or residential land. Investors looking for investments in the agriculture sector can find suitable lands in various provinces in Turkey. The situation is the same for residential lands suitable for constructing residential or commercial projects.
The equation of getting the cheapest and the most profitable property is affected by many factors and might be variable according to the city or the location that you are looking at, type and size of property, budget and other factors. In general, you can go opposite to the city size, buy smaller when the city is bigger. You can also consult a local real estate agent to help you in solving this puzzle.
When thinking about where to buy in Turkey or in which exact city, you need to be sure of your target, need, or preferences as all of these will affect this decision. Apart from any special cases or needs we can divide the market into two groups, Istanbul, and other Turkish cities. Here it is why:
Istanbul is the city that everyone loves and wants to live in, no matter Turkish or foreign. It’s the heart and the engine of Turkey, it’s the most populated city and the most active, it’s the biggest and the richer in options of everything. Whether you are looking for a residential apartment, penthouse, villa, or looking for commercial property like an office, shop, hotel apartment, or something else, Istanbul has all options of small and big apartment, with sea view or other views, within a complex or not, shops or stores, offices or hotel apartments. That is part of the magic of the city, which makes it a better place for investing.
The most famous cities in Turkey other than Istanbul are (Ankara, Izmir, Trabzon, Bursa, Yalova, Antalya, Bodrum, and Fethiye). Whether you are looking for a residential property or a commercial one, you may find thousands of options in those cities. One of the main differences between Istanbul and those cities is the population. Istanbul has about 16 million people dwelling in, this number is almost three times the number of people living in Ankara or Izmir, and four times the number of people living in Bursa; which are the highly populated cities after Istanbul. This difference in population makes a big difference in possibilities and availabilities. You need to be more accurate when deciding where to buy out of Istanbul as each city has different features, advantages, and disadvantages. The main thing that you need to be aware of or tolerant with is the investment part. Many people like to think about their residential properties as an investment or saving for the future; which is rational. But the percentage of reselling possibility or making a profit is different from Istanbul to other cities, and from one type of property to the others. If you have ever dreamed of a house by the sea or in the mountains surrounded by trees, or maybe having your own farmhouse with some crops to grow and some animals to take care of, your dream can be true in Antalya, Bodrum, Fethiye, Trabzon or Bursa. If you are thinking of a modern city life with lower stress and crowds you can find this in Ankara or Izmir. Istanbul can be the answer too. Features and specialties of each city are different, you can read more about them on our website.
Taking the decision of investing in a foreign country is not an easy one, especially that you most probably don’t have the needed time to know the country or the city as well as needed. Having a supporter and a consultant like CCT Investment by your side will help you understand the market better and will save you Time and Money by avoiding the wrong places for buying. Through its experience in the market of real estate, CCT Investments has always focused on building a strong relationship with the clients by giving all needed information and support to make sure they are achieving their investment targets.