Factors to Consider When Buying a Turkish Property in Addition to Price and Location

Property Turkey, founded in 2001, provides lifestyle and investment services to global clients, offering specialist assistance with property searches and acquisitions, management and lettings of investment properties, citizenship and residency applications and design and construction projects.

The seasoned experts in the Turkish real estate market note that, for many clients, a focus solely on locations and budgets can be a mistake, particularly for investors who require viable returns from their property portfolios.

By sharing guidance on other aspects, such as saleability, market fluctuations, and the practicalities of relocating to Turkey, Property Turkey hopes to help prospective buyers avoid common errors. 

Trends in Regional Housing Markets in Turkey

Property buyers looking for investment homes, developments, residences, or holiday homes often centre their searches on listing prices. However, the differences in property market performance across the Turkish regions can have a marked long-term influence on how well a home bought today will retain its value.

The Turkish Housing Price Index has recorded recovery within the market, with real-terms growth in average property values, the first seen for almost two years when accounting for the impacts of inflation.

Housing price growth that outpaces inflation is positive and improves investor confidence in the stability of the Turkish real estate market, but it varies across regions, with the highest annual growth in eastern Turkey, at almost double the rate elsewhere.

Therefore, buyers are advised to review the latest activity in the region of Turkey they are considering and to seek advice on whether house price growth is continuing or whether they could be buying at an inopportune time when prices are at a peak.

Turkish New-Build or Resale Property Purchases 

Like most real estate markets, buyers can choose between newly constructed properties, including homes in gated communities and apartments, and resale properties, each with its own advantages and drawbacks.

Newly built homes offer energy efficiency, modern materials, and the flexibility to specify flooring and finishes, in cases where buyers can liaise with developers to state their preferences when buying off-plan.

Many developers incentivise buyers with discounts for those committing to a purchase at an earlier stage, or with low or interest-free instalment options, although this will depend on the specific development. However, buyers can expect to wait several months and potentially a year or more before a home under construction is ready to move into.

Resale properties are generally ready to move into immediately after the sale completes, are often in well-established residential areas with good transport infrastructure and offer the opportunity to negotiate the price.

The caveat is that buyers, especially foreign nationals unfamiliar with the purchase process in Turkey, should work with an experienced, credible agent to ensure they understand the terms of the transaction and complete the necessary checks and searches before proceeding.

Saleability Aspects of a Turkish Property Acquisition

Buyers who may potentially look to sell a Turkish home in the future, or who are building a Turkish real estate portfolio for investment purposes, will need to assess how easily they might be able to sell, how changes in local markets and average selling prices will affect their returns, and other factors that could make an area or region more or less desirable.

Up-and-coming resorts normally offer lower property prices compared to well-established tourist locations, where properties sell reasonably fast. However, there is no guarantee that the development of new infrastructure will lead to property appreciation.

Much may depend on the type of property and intended demographic, since the priorities for holiday home buyers will differ from those of retirees or families. 

Therefore, buyers are advised to research local amenities such as transport connections, beaches, tourist attractions, and schools to ensure their real estate will be straightforward to sell when the time comes.

Many also look for properties within or near major urbanisation projects and developments, where infrastructure may currently be lacking, but where planned investments will make these areas more attractive to buyers in the years ahead. 

Turkish Property Purchases and Residency

Some foreign national buyers combine a property acquisition with an application for Turkish citizenship or residency, or use a purchase strategically to become eligible for either programme.

To qualify for the residency by investment scheme, applicants must purchase property worth at least $200,000 in the equivalent value of Turkish Lira and then have the option of applying for an ikamet or Turkish resident’s card.

Those applying for citizenship by investment can qualify by purchasing property worth at least $400,000, which can be residential or commercial and must be retained for three years.

However, non-Turkish nationals must also comply with rules limiting the proportion of properties in specific areas that foreign buyers can own to 20%. That means buyers may need to consider the value of the property they wish to buy, whether this will ensure their eligibility for their intended visa programme, and the areas where real estate purchases are permitted.

Additional Cost Considerations for Turkish Real Estate Buyers

Comparing properties based on area, price, projected valuations, and eligibility for residency or citizenship schemes remains wise, but buyers should also be mindful of additional costs and fees they will need to budget for, which can vary by location.

Most properties within complexes, or apartments in larger buildings with communal facilities and amenities such as lobbies, security guards, parking, pools, and landscaped gardens, will carry a maintenance fee, or Aidat, usually paid monthly.

These charges can range from nominal contributions to significant overheads, depending on the property’s location and the standard of services provided.

Other costs include mandatory earthquake insurance, or DASK, which all homeowners must hold to be able to register for utilities and receive title deeds, and annual property taxes, called Emlak Vergisi, a charge levied by the local municipality and usually based on around 0.1% to 0.2% of the property value.

Keeping all of these aspects in mind will ensure that buyers make informed decisions about when to buy and have the assurance that their property acquisitions will meet their objectives.