Let's look into why Alanya attracts investors and whether there are risks investing at an early stage of construction.
When it comes to new projects, from the moment a complex goes for sale and before the beginning of the construction, a portion of the apartments is already sold. So, it is more profitable to invest in a project not even at a pit stage, but when the project is only on paper. This can be done remotely without costs on air fare. For example, our company has offices in Kazakhstan and Russia; we often participate in real estate exhibitions all over the world.
To understand the likelihood of unfinished construction, one should take a walk around Alanya. Unfinished buildings are extremely rare here.
Under the state control
Both real estate agents and developers can only operate in Turkey with a proper license.
Receiving a building permit, yapı ruhsatı, is an incredibly complex procedure.
The state also verifies the funds on construction and may freeze them to guarantee the protection of the investors' rights.
Apart from the permit, one needs to receive a license from the Ministry of Environment and Urbanization (Çevre ve Şehircilik Bakanlığı). If there is such a license, it is an indication of the developer's reliability.
All infrastructure that is indicated in the project (a pool, bath, sauna, hammam, playgrounds, etc.) is approved and certified prior to the beginning of the construction, in the architecture bureau. The state strictly controls the 'expectation' and 'reality' of a buyer. Otherwise, a developer will nor receive an Iskan for the building, in other words, the building will not be commissioned. Nobody is at risk.
When foundation is being laid out, multiple samples are taken carefully.
A designated organization, Yapı Denetim, monitors the construction progress stage by stage, the supervisory authority is determined by the municipality.
Many are surprised by the fact that it is a common practice by the government to rebuild the aging housing stock - renovation. While in CIS there is still no clear understanding of how to do it and what to do with the homeowners, old shabby buildings are demolished at full speed in Alanya and an apartment is given to the homeowner in the same place 1,5 - 2 years later. During this time, the rent is paid for by the government. Developers either earn by constructing taller buildings or by completely buying out the project for demolition.
All homeowners also own the part of the land under the house.
In case of the developer's bankruptcy, which happens extremely rarely, its property and the project are put up for an auction, another developer will buy the project and complete it.
How real estate is registered
There is no shared-equity construction. A sales contract includes all terms, conditions, and obligations of the parties. The developer has no right to increase the price after the contract has been signed.
In some cases, a title deed, TAPU, is given even for the real property being under construction if 60-70% of it is ready. TAPU can also be received even for the apartment that has not been paid for in full; in this case, a special encumbrance is indicated.
If this is stipulated by the contract, one may re-sale the project under construction and before it is paid in full. Is it worth investing now to re-sale later?
Apartment prices in Turkey in 2022 have shown an annual growth of 172%. It seems as if they skyrocketed beyond the limits. But on the Alanya's horizon there is less, and less land left for construction. According to the Turkish Statistical Institute, the construction costs had grown by 105.73% per annum by May 2022.
Alanya is becoming more and more like a beautiful, high-quality, comfortable for life European city. The population has increased by 5.26%, and some of the most popular districts suspended the issuance of resident permits as the 20% quota of foreigners among the local population has been already exceeded. For example, a monthly average number of requests for a resident permit from Russian citizens in 2022 has increased by 366.14% compared to the same indicator last year. There are also many citizens of Ukraine, Iran, Iraq, Kazakhstan, and Europeans.
According to the Turkish Statistics Institute, real estate sales to foreigners have increased by 70% compared to last year. The demand is increasing, and there is no reason to believe that real estate is overpriced, the price will go down soon, or become cheaper.
In price lists for our projects, we always indicate an anticipated increase in price in accordance with the stage of completion. From the 'pencil' stage until the commissioning of the project, the price may go up by 30% or even higher, and it will keep growing.
We suggest that you learn about the new investment projects now. Their quality and infrastructure are truly impressive! Especially, when compared with the projects at the same cost on popular European resorts. Housing with its territory and recreational areas similar to a 5-star hotel are now built in Turkey. Complete finish of the interior, finished bathrooms and kitchens are always included in the price.
For a consultation, please contact one of our managers. As one of the biggest developers in Alanya, we offer various options depending on the plans and budget of the investor.