Reasons for real estate investment in Turkey

 

The real estate market in Turkey plays an important role in the growth of the Turkish economy. The Turkish state is also interested in developing this sector on the real estate or investment levels. Over the past ten years, the Turkish real estate market has provided approximately 8.4% of the GDP. Almost half of the total investment is from foreign citizens. Also, foreigners have been buying Turkish apartments for many years over the past three years. The volume of transactions carried out by foreign nationals has grown by about 25,000 .

 

 

Advantages of buying Turkish real estate

Among the country's main advantages in terms of investment:

No VAT when purchasing real estate
Sales tax is only 4%
Long-term work visa granted to foreignersThe opportunity to obtain citizenship according to a simplified scheme when buying from 250 thousand dollars

Of course, we must not forget the wonderful climate, active social and economic development, the high standard of living, affordable cost of living, affordable housing, and other important advantages of this country. All of this together allows us to say that investing in Turkey is profitable and reliable.

Creating income and preserving capital is the main goal of any investment. Investing in Turkish real estate is no exception. This country provides a great opportunity to achieve these goals. Here, the purity and legitimacy of the transactions is guaranteed

 

Reasons for real estate investment in Turkey

Over the past fifteen years (period from 2003 to 2018), the country's economy has received 12 times more money from foreign investors than the previous thirty years (period from 1973 to 2002). The measures taken by the Turkish authorities that facilitate foreign investment create investment opportunities available to all international investors without any restrictions. We suggest the most important 15 reasons to invest in Turkey.

 

1. The country's confident economic development

According to experts, the Republic of Turkey will soon enter the top ten developing economies with a $ 1 trillion index. As Bloomberg experts made recommendations for the benefit of this country because its economy is growing rapidly and a 3-fold increase in GDP over the past 14 years. This indicates a somewhat stable economic situation, which is subject to reliable control even in times of crisis. A stable economy and competent government policy in this area are the main pillars of successful investment.

 

2. Comfortable investment climate

Turkey is famous for its liberal system of regulating foreign capital. To actively attract investors from other countries, special measures are put in place and taken, and the principle of equality with national capital is respected. Foreign investors feel comfortable in Turkey. They have the opportunity to choose from promising high-quality options, buy them at reasonable prices and use them to generate income.

 

3. Good location

Speaking of Turkey's investment advantages, it is impossible not to mention its unique location. This country is the borders of the West and East, where money flows from both eastern and western investors. The state skillfully establishes relations with other countries and offers loyalty to its citizens.

 

4. International tourism development

Local resorts are very popular all over the world. The Turkish authorities are actively supporting the tourism sector, so the number of tourists in this country has been increasing for many years. Among them - Arabs in general, the British, Europeans, citizens of Russia, Ukraine, Belarus and other countries.

Tourists create a huge demand for rent. This is a source of income for investors. Due to the increasing popularity of the country among tourists from all over the world, housing on the coast will never be empty during the season, and housing in Istanbul, Izmir or Antalya can be considered generally in all weather conditions.

 

5. Civilized growth and modern infrastructure

The development of the real estate market coincides with the development of the construction sector. Turkish cities are actively building, roads and bridges are being rebuilt. Today, developers offer very modern residential complexes located in areas with developed infrastructure. Buying on such sites is definitely promising and safer, and Turkey is ready to offer it abundantly.

 

6. A wide range of offers for profitable investments

The Turkish market offers a wide range of categories:

Under construction projects
Completed projects
New buildings and the secondary market
For rental, resale, etc.

Here you can buy just about everything, from a comfortable studio and a stylish penthouse. Every buyer has the opportunity to choose the ideal option for his goals and budget. The leading companies in purchases by foreign buyers are the big cities and resorts - Istanbul, Antalya, Bursa, Ankara, Yalova.

 

7. Profitable plans for real estate investment

Investors in Turkey have the opportunity to effectively implement proven investment methods:

Long term rental purchase. If you bought an apartment in Istanbul or Turkey in general, you can immediately search for tenants for it.
Short term rental purchase. This option is especially suitable for foreign buyers, because it assumes that the management company will be concerned with the organization of management. At the same time the owner has the right to spend in his apartment a specific time of the year, for example, a week. This is a good option for those who want to have an apartment by the sea for a seasonal vacation, and the rest of the time to get an income from them.
Purchase for resale. Many investors make good money from reselling real estate purchased in the initial stage of construction. The developers offer the lowest prices at the start of construction. As construction progresses, apartment prices in Turkey rise. After leasing it becomes 30% higher on average. This difference in price at different times of project readiness is a profit for a visionary investor. The investment profit depends not only on the chosen investment scheme, but also on the competent choice of the component and the project

 

8. Special investment offers in the market

In the Turkish market there are offers for buyers of any level. Beginners and experienced investors can easily find the right investment options and schemes. Real estate in Turkey is designed not only for those who want to buy an apartment for personal use, but also for those who want a profitable investment. For these purposes there is a special set of offers.

If your goal is to generate immediate income, Turkish developers offer a wide range of ready-made projects. If you want to get the most profit, there are a large number of things under construction at your service, where you can buy apartments at the lowest prices.

 

9. High return

The return on investment depends on the correct choice of the investor. Depending on the location, the characteristics of the residence, and the manner of administration when renting, you can count on a return of 3% to 15%. With the participation of the management company, income may increase. With profitable and timely purchase and thoughtful resale, income can reach 200%.

 

Profit	Investment type
from  6% –  7,2% to 12%	Long term rental
from 4% – 5% to  20%	Short term rental
from 20 % - to 30% and  100%	Resale

 

10. Housing service

The housing management company will help organize housing services for foreign investors. This service includes a full range of home maintenance services - cleaning, making current repairs, arranging rentals, contacts with tenants, etc. The average cost of services is $ 600 annually for maintenance and about 20% of revenue.

Property maintenance costs

 

Cost	Type of fee
0.6% - 0.1% annually of the cadastral value	tax
15 - 50 dollars a year	(Municipality fees (garbage collection and street cleaning
Around $ 1,650 annually for 1 + 1 apartments	(Public utilities (utilities bills and verses
20-200 dollars a year	Dask insurance

 

11. Comfortable tax system

The acquisition of real estate involves the payment of related taxes:

Tax on purchase and sale - 4% of the property's value
Real estate tax - 0.6 - 0.1% of the area value. On average, no more than $ 75 goes to the apartment annually, and no more than $ 100 goes to a large house.
Income tax - from 15 to 35% of income.

Tax rates may vary from region to region, but in general Turkey's tax policy is completely sincere. This is another reason why investing in Turkey is profitable.

 

12. Property rental opportunities

The most wonderful option is to rent apartments, especially apartments located near the beach with a view of the mountains or the sea with furniture and all necessary equipment. Because in the summer season, tourists prefer to spend holidays in these apartments overlooking the sea. Also, those who prefer to spend their winter vacation want to rent apartments overlooking the mountains.

 

13. Wide possibilities for resale

If you prefer profit on resale, Turkey will offer many opportunities in this case. Because of the steady increase in prices, income can be obtained even with the resale of secondary housing. People who bought apartments in good areas about 5 years ago now sell them 45-50% more.

But most of the time, investors who prefer to resell choose offers at the construction stage. Then the profit can reach 200%.

Experts say that market prices will continue to rise, which means that the positive outlook will continue in the rental and resale sectors. By purchasing an apartment in Turkey today, you can get an income between 20 and 25% of its sales within a few years.

 

What profitable real estate to invest in 2020

The right choice is the basis for a successful investment. If you want to choose the best option for buying a property in Turkey, choose it on our website. To correct your choice, we recommend that you adhere to the following rules:

Choose a trusted partner. We have published offers from leading Turkish agencies and companies, as well as from proven vendors and developers. With us your choice will be trusted.
Choose a project to invest in big cities or in popular resort areas. In this case, your property will always be required.
Define your goals and carefully select options for them. If you want to rent an apartment and get income right away, pay attention to the developers' and agency's proposals for the short term rental agreement facilities. If your goal is to resell, choose among the projects under construction. Project selection is the key moment for investing. We are ready to offer you promising and reliable options.