The Cost Of Buying a Property In Turkey
Owning a second home or an investment property abroad is no longer a luxury that only the leading businessmen and investors can enjoy or an exclusively elite trend.Instead, it is the benefit of globalization that anyone can enjoy. With the world becoming more connected and cooperative, countries have been opening up their economies and formulating various policies to attract foreign investors. Turkey is no exception either!
To increase foreign direct investment (FDI), increase capital inflow, and promote economic growth, Turkey offers foreigners lucrative investment opportunities in the real estate industry.
Buying a Property in Turkey – 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.
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