Can property be taken away from foreigners in Turkey? What are the laws and specifics regarding property ownership? What are the risks of investing in construction? Turkey offers a quick and easy process for purchasing apartments, villas, residential, and commercial properties. Let's explore why investing in real estate in Turkey is advantageous.
Advantages of investing in real estate in Turkey
In recent years, Turkey has emerged as a highly attractive destination for real estate investment, captivating the interest of both local and international buyers. With its unique blend of stunning natural landscapes, rich cultural heritage, booming economy, and strategic geopolitical location, Turkey offers a plethora of advantages for those looking to purchase property.
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Buying property in Turkey is easy. Potential buyers often see the rising property prices in Turkey and think, "Why Turkey at these prices? Better somewhere in Europe." However, they are surprised to find various bureaucratic hurdles, like bank account questions and legalizing large amounts of money, in Europe. You often need to prove the legality of your funds before purchasing. In Turkey, the process is simpler. There are rarely insurmountable obstacles due to internal laws, excluding sanctions and banking restrictions. Turkey does not question the source of your money, ensuring a secure transaction.
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Investment privacy guaranteed. An important factor is privacy. The deal remains between you and Turkey, with no data shared with third parties. Turkey is a neutral and safe haven for investments.
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100% property ownership. Ownership in Turkey is transparent. Foreigners have the same rights as locals. Unlike some countries where properties are built on leased land, Turkey mandates that developers cannot build on rented plots. Every owner gets a share of the land. The property title, known as TAPU, is issued by state authorities, listing the owner's name and specific property details. Both citizens and foreigners with TAPU are legal owners, covering completed and under-construction properties, including land shares. The title ensures perpetual and absolute ownership, which cannot be contested.
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Insurance and guarantees. Turkey requires mandatory natural disaster insurance for all property owners. The system is improving, and claims are paid. All processes, including ownership, insurance, inheritance, and sales, are strictly regulated and legally compliant.
There are plenty of advantages of investing in Turkish real estate with the real estate agency STAY PROPERTY. We’re here to make the process fast and easy for you.
Are there risks when buying property in Turkey?
Is it safe to buy property from a developer in Turkey? If the complex is still under construction, a multi-language contract including a version in the buyer's native language is signed with the developer. The contract outlines payment stages, guarantees, and obligations of both parties. Subsequently, the TAPU (title deed) is issued, even if the construction is not yet complete.
Many investors are concerned about construction delays, which are common among developers. However, there is no need to worry; everything will be completed. Several factors have impacted the construction sector recently—rising costs of basic building materials, wages, and other nuances like residence permits and market activity.
In Turkey, there are no practices where developers take investors' money and disappear. Investor funds are safeguarded by escrow accounts and government oversight. If a developer faces financial issues, the project is transferred to another company for completion.
Under Turkish law, developers can delay the completion date by up to 6 months. It's crucial to consider the developer's reputation. Reliable developers with a long market presence always complete their projects. A solid reputation and experience are necessary for approval to undertake large projects.
Turkey's real estate development and sale system is designed to maximize buyer protection and make leaving projects unfinished unprofitable for developers.
Construction companies are strictly monitored by authorities and face hefty fines or loss of their construction license for non-compliance.
Before starting construction, timelines for intermediate stages are set and checked by commissions at the completion of each stage.
If a Turkish developer uses loan funds, they provide substantial collateral to the bank.
When buying a property from a developer in Turkey, it is important to carefully review the contract, including construction timelines, apartment specifications upon project completion, penalties for delays, and periods for defect rectification.
Citizenship by investment program
Citizenship through investment in Turkey is not complicated if you have the necessary knowledge and expertise not to mention funding.
There are several ways in which a foreign capital owner can obtain citizenship:
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Capital investment is made by purchasing fixed-income government bonds, depositing money in Turkish banks, or otherwise passively investing in the economy.
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Business investment is done by opening a business or investing in an existing one. However, your operation must meet some criteria and create jobs.
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Real estate investment is arguably the safest and most profitable method. The minimum investment in property must have a price higher than $400,000 USD. Real estate agency STAY PROPERTY offers its investment projects, where the process of obtaining citizenship begins when you pay from $250,000.
Note that becoming a Turkish citizen is very beneficial and comes with multiple perks:
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Visa-free traveling to a variety of countries.
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Working, studying, or doing business in Turkey without any legal issues.
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Being eligible for social and universal healthcare benefits.
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Earning rental yield on purchased properties.
Note that foreigners have the same rights when purchasing real estate as citizens. The tapu law specifies absolute rights to a portion of the land plot (share) and residential property.
The potential is huge
The booming tourism industry is getting back on track after setbacks caused by the COVID-19 pandemic. Before that, the nation welcomed 35 million tourists annually affecting the value of real estate in big cities. Expert analysis says that rental yields in prime resort cities are over 8%. The tourism industry is expected to grow significantly in the near future making any investment in residential and commercial real estate quite attractive. In the first five months of 2024, Antalya welcomed nearly 4 million tourists, an 18% increase from 2023. Most tourists came from Germany (974,000), Russia (857,000), and the United Kingdom (451,000).
Remember that Turkey is a country with an amazing cultural heritage and features a fusion of ethnicities, languages, and traditions. Living here is an investment in your well-being and lifestyle. Real estate by the sea is always in demand and highly liquid; you can make a good profit from it. Moreover, numerous festivals, concerts, museums, exhibitions, cuisines, entertainment options, and more create a vibrant environment that attracts foreigners who want to buy property in Istanbul, Alanya, or Antalya and settle down in these regions of the country!
The main takeaway
Turkey is a prime destination for investors focused on investing in reliable real estate markets. Thanks to favorable legal frameworks, rapidly growing tourism, and promising developments in the economy, 2024 is a great time to purchase a home or two in Turkey if you value real estate investments.
If you plan to buy property in Turkey, do it with the help of experienced professionals at STAY PROPERTY. Call us today and receive all the necessary assistance to become a homeowner or Turkish real estate.