The Most Important Advantages of Real Estate Investment in Turkey
According to data from the Turkish Statistics Authority, Turkey sold over 1.5 million properties during 2021, more than any other European nation, while the one that came in second with 1.3 million registered properties; To address the question: Why real estate investment in Turkey? Property Experts for Real Estate will outline the top benefits of buying real estate in Turkey.
What Are The Advantages of Investing in Real Estate in Turkey?
1. Excellent returns increase over time
Based on the alluring force of Turkish tourism, which is best experienced during peak travel times and seasons, buying real estate in Turkey can provide a profit. This is because there is a year-round demand for rental properties during peak travel times. Because of this, making a wise investment in real estate, which is highly common in Turkey during the tourist seasons, might yield positive returns.
The value of the property may frequently improve, bringing annual profits from investment returns earned through selling or leasing to 12% of the value of the original property. True estate investment is typically known for preserving its real value.
The benefit of real estate investment returns in Turkey grows, particularly if the ownership of real estate in Turkey is long-term, which means that the property's value will rise over time and the capital will grow as a result.
The additional income projected from renting the property is believed to be a semi-fixed income due to the numerous and continual demands for rent in Turkey, as well as the fact that investing in a country like Turkey is a safe investment.
Here, we should draw attention to two things:
- Buying the property at a price that is reasonable for comparable properties should be carefully considered.
- Then carefully considering how to invest it, whether by renting it out for a particular rate or by selling it for more money than you paid for it.
You’re welcome to benefit from the experience we have-at Property Experts for Real Estates-where we’re ready to provide you with all the information needed through the whole process of real estate investment in Turkey.
2. Possibility to obtain Turkish citizenship
Linking the granting of Turkish citizenship to owning a property worth $400,000, whether the property is an apartment, office, villa, or shop, and on reduced terms, increased Turkey's importance to be among the best countries in the world for real estate investment. This was considered a strong motivator, especially for those coming from unstable countries, to buy real estate in Turkey.
The Turkish government has taken this issue very seriously, especially in light of the fact that a sizable number of investors were granted Turkish citizenship barely 90 days after completing the purchase process. Many Arab businessmen and those from the bordering countries were attracted to invest significantly as a result of this method and other Turkish government amenities. Turkish real estate to make money and become a citizen at the same time.
3. Turkish government support for the real estate sector
One benefit of investing in real estate in Turkey is that the government has prioritized the industry through a number of real estate campaigns in recent years. President of the Republic of Turkey "Recep Tayyip Erdogan" made a special appeal in 2017 to revive real estate businesses across Turkey by organizing a number of real estate promotion campaigns, the biggest of which included the sale of apartments across Turkey.
The primary actions carried out in this context include:
- Value-added tax is not applicable to foreign nationals or expatriates when they purchase real estate.
- For those who wanted to buy in installments, the advance payment was scaled back and the percentage was cut from 25% to 20%.
- According to Turkish law, a foreign investor who purchases a property there is entitled to obtain real estate residency for himself, his wife, and his children.
- On the President of the Republic's instruction, certain real estate businesses have sought to totally cancel the interest.
4. The Turkish real estate market offers a variety of exceptional and promising options.
Due to Turkey's size, the distinctive nature and climate of its cities, the strength of the infrastructure, and the multiplicity of real estate options the country offers, as well as price competition, the Turkish real estate market offers a wide range of opportunities and options. This diversity is one of the key factors contributing to Turkey's real estate's strength and distinction, and it is also one of the reasons why Turkey's real estate is becoming increasingly more attractive to foreign buyers.
5. Real estate prices are cheaper compared to Europe
According to reports, Turkey's real estate costs considerably less than those in Europe, offer advantages in terms of infrastructure, and have a structure that is similar to that of wealthy European nations.
Real estate in Turkey is affordable for all income levels, and the country offers a number of facilities and incentives that encourage investment. These factors, along with Turkey's many other attractions—including a fantastic climate, a promising economy, a sizable real estate market, and numerous tourist and historical sites that draw visitors from around the world—make Turkey an excellent place to live and invest.
6. Tax exemptions for foreign investors
The exemption from Turkey's value-added tax that applies to foreign investors who do not reside in Turkey is one of the amenities that the Turkish government continues to offer to attract more foreign investment to the country.
Due to this exemption, foreign investors can take advantage of Turkey's tax exemption and save a significant sum of money when investing in real estate there. It is well known that Turkey's value-added tax ranges from 1% to 18% of real estate sales.
In Turkey, tax exemptions are regarded as a powerful instrument in the hands of economic decision-makers to revive the domestic economy and function as a magnet for luring in international investments.
These cuts included a number of measures that were explicitly targeted at the Turkish real estate market, which actively and favorably encouraged foreign investors to buy more real estate, helped pump new life into this vital industry, and helped revive the real estate market as a whole.
Frequently Asked Questions:
- Does Turkey offer protection against inflation for real estate investments?
There is no question that inflation has a negative influence on local consumer price indices, whose income is dependent on the Turkish domestic market, which in turn has a negative impact on real estate investment in Turkey.
Regarding the effect of inflation on foreign investors who deal in currencies other than the Turkish Lira and thus bring their investment funds from outside the Turkish local market, these investors will not be impacted by the high rate of inflation on buying and renting for them, but the high inflation may occasionally be advantageous to them when comparing their foreign currencies to the Turkish Lira and making buying and renting real estate less expensive.
- What impact has the Turkish lira crisis had on real estate investors?
Due to the fact that the Turkish economy is founded on three primary sectors—industry, trade, and real estate—experts do not necessarily feel that the local currency's drop indicates a poor economy. All of these industries shown great performance in their respective indices, particularly Turkish businesses, whose exports go to 126 different nations worldwide.
In accordance with the most recent official figures, it recorded $200 billion annually. Because foreign investors are increasing their demand for Turkish real estate as a result of the local currency's decline, the decline in the value of the Turkish lira is counterproductive to rising real estate prices in Turkey. As a result, Turkish real estate is better able to maintain the prices it has established based on market values.