Buying In Turkey
It’s One of The Most Beneficial Real Estate Markets for Foreign Investors.
With a unique geographical location, robust economy, good GDP growth, dynamic demographics, tourism, and relatively low cost of living, Turkey has all the basic features of an attractive market. According to Remote Ventures, a US-based international real estate investment firm, Turkey’s real estate industry is the 14th most advantageous property market of the world for foreign investors.
The real estate industry accounted for about 8.4% of the country’s GDP during the last decade and 45% (5.9 billion) of Foreign Direct Investment (FDI) in 2018.
Wondering what makes Turkey’s property market ideal for investment?
While there are several reasons that Turkey’s real estate industry is readily becoming a center for financial activities and international investments, here are the top four:
1. Turkish Economy Is Expected to Display a Record Growth In Near Future
Experts are predicting that Turkey’s economy is going to boom, even further, in future. According to Douglas Winslow, the director of a Fitch Ratings’ team, Turkey’s GDP is likely to increase by 4.5% in 2021. The World Bank, however, has predicted the expected growth rate in 2021 to be a record 5%.
If you have been considering investing in Turkey’s real estate, this is the right time to do it.
2. Property Prices Are Still Low
Despite the fact that Turkey’s property market and overall economy have largely been displaying positive trends, property prices in Turkey are still significantly lower than other European countries. This makes it an ideal investment opportunity.
3. Property Taxes Are Low As Well
While the rate of tax varies for different types of properties (land, residential property, commercial buildings), it is significantly lower than most other parts of the world. Property owners are even exempted from income tax on capital gains earned from the sale of immovable properties that they held for more than five years (four years if the property was bought before January 2007).
4. You Can Get Turkish Citizenship, as an Added Advantage
Foreigners making an investment of over $250,000 in Turkey’s real estate industry are provided the opportunity to apply for Turkish citizenship.
Can it get any better than this? We bet, it can’t! So, don’t miss the amazing investment opportunity and contact us to buy a property in Turkey. Take our word for it – it will be one of your best financial decisions for yourself and your family.
Property Prices and Associated Costs.
When it comes to buying a property in Turkey, the foremost question most people ask, is how much does it cost to buy a property in Turkey?
There is no fixed answer to this question as the cost varies according to the nature and size of the property as well as the city and the particular area it is located in. To give you an idea, here’s the average price for 100 square meters in some of the Turkish cities.
Note that these cities are known to have the highest price per square meter. You can get properties at even lower rates in other cities or even in the suburbs of these cities.
Average price for 100 sq. meters in Euros
Other Expenses Associated with Purchasing a Property in Turkey
Like all other countries, there are some miscellaneous costs associated with property purchasing in Turkey. The major ones include the following:
· Appraisal Report Fee
Obtaining an appraisal report, stating the accurate value of the property, is obligatory for foreign buyers. It’s issued by the Capital Markets Board of Turkey, called Sermaye Piyasası Kurulu (SPK), in Turkish. The assessment typically costs about 1400 to 1500 TL (Turkish Lira).
The purpose of making the report mandatory is to protect foreigners against frauds and ensuring that the sellers won’t take advantage of their lack of knowledge about Turkey’s real estate and sell them properties at high rates.
· Title Deed Transfer Fees
The fee for title deed transfer is about 4% of the declared value of the property, and it is paid to the General Directorate of Land Registry and Cadastre.
The land registry department charges an additional processing fee for title deed transfer, which is about 400 TL.
· Earthquake Insurance (DASK)
Turkish law requires all properties to be insured against potential earthquake damages. The insurance may cost 150 to 300 TL, depending on the area of the property.
· Electricity and Water Abonnement Fees
If you have bought a new property, you need to pay to get electricity and water facilities. While the exact charges vary across cities and districts, you can expect to pay anywhere from 100 to 500 TL for electricity subscription and over 700 TL for water. The fees will be higher if the DASK insurance of your property is expired.
· Property Tax
This tax needs to be paid by the property owners annually. The property tax rate for residential properties is 0.2% of the property value in metropolitan areas and 0.1% in non-metropolitan areas. For commercial properties, the rate is 0.4% and 0.2% for urban and non-metropolitan areas, respectively.
· Maintenance Fee (for Apartments)
Apartment owners have to pay an additional monthly maintenance fee for communal facilities, such as security and electricity of shared areas.
Have more questions related to buying in Turkey?
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