Foreign nationals, expats and investors are increasingly interested in the Turkish real estate market, with property prices even in premium, high-demand and tourist destinations still well below the European average. The growing appreciation and market buoyancy promises excellent returns in the years to come.
One of the many challenges for those considering buying a home or investment property in Turkey is that the purchasing process, residency requirements, and variety of real estate on offer may differ significantly from those in their home country.
Property Turkey, a specialist in the sector and a firm that provides assistance with everything from finding the perfect property to navigating the transaction and selecting viable investments has collated this concise guide to cover all the essential aspects you need to be aware of.
Advantages of Purchasing Property as an Expat in Turkey
Many of the clients we support are looking for a Turkish property as a permanent or second residence, a holiday home they can rent out for part of the year, or to add to an investment property portfolio—with the option of relocating or retiring to this beautiful part of the world in the future.
A great aspect of Turkish real estate ownership is that, depending on your plans, you may qualify for residency or citizenship, provided you purchase property worth USD 400,000 / 13.6 million TL / £305,200 or more and comply with other eligibility requirements linked with the Türkiye Citizenship by Investment Program.
There are compelling benefits, irrespective of whether a second citizenship would be appealing:
- Average property pricing remains affordable even in affluent areas and cities like Istanbul. Many British and American buyers find that their budgets stretch to luxurious and generously sized homes, modern apartments, or coastal villas far beyond what they would have found for a similar price at home.
- Living costs in Turkey are equally low compared to most other locations. A stable income supports a relaxed, high-quality lifestyle with plenty of amenities and attractions to make the most of the warm Mediterranean climate.
- The booming tourism sector offers an opportunity to earn an ongoing return alongside the potential for real estate to appreciate swiftly in value.
Government investments in construction and development, increases in the number of new-build areas that attract international buyers, and the simplicity of purchasing property in Turkey create a great environment for anybody wishing to buy real estate in the country.
Rules and Restrictions for Expats Buying Turkish Real Estate
Turkey has very few limitations, and global investors and expats can purchase anything from modern, efficient condos and apartments to restored traditional Ottoman houses. Those keen to qualify for citizenship can also meet the minimum investment threshold by buying one or several properties.
The only real restrictions are that foreign nationals cannot purchase a property covering an area larger than 30 hectares (300,000 square metres), own a property or real estate comprising 10% or more of one district, or purchase real estate within a restricted military zone.
The Process of Purchasing a Property in Turkey as an Expat
Onto the area we’re asked about most often – how does the purchase actually work if you’re buying a home in Turkey as a foreign national? While each buyer may have a slightly different set of priorities or timelines, the process is fairly straightforward.
Step one is to contact the Property Turkey team to discuss your needs, such as the property types you’re interested in and your budget, and then look at listings that fit your requirements.
From there, you can:
- Arrange a virtual or in-person viewing, discuss the local transport links and amenities, and negotiate the pricing through our representatives. We can also advise you on the terms and conditions to ensure you make informed decisions throughout.
- Next, you'll sign a purchase agreement, followed by a contract of sale and pay an initial deposit to reserve the property – this acts as a formal commitment to the transaction.
- Your solicitor will manage the legalities, such as searches against the title deeds, and will need evidence of your passport and any residency permits.
- An appraisal or survey is recommended, and we can usually organise this on your behalf within a few days to verify that there are no structural concerns or issues that might impact the price you are willing to pay.
When these steps are completed, you’ll pay your notary and receive a document called a Tapu – the equivalent of a title deed – and instruct your solicitor to register this with the local land registry. They will then issue a new Tapu confirming you as the owner.
Finally, you'll complete the purchase agreement, remit the balance payable and become a Turkish property owner.
If you're applying through the citizenship program, you can proceed with the last stages of the application upon receipt of the Tapu. Otherwise, you'll need to register for a Foreigner Identification Number to be able to proceed with your purchase.
Average Costs and Fees When Buying Turkish Real Estate
We'll provide suggestions and advice during your property search, including insights into the fees and taxation associated with a real estate purchase. The list below shows some of the average costs you should incorporate into your budget.
- Notary fees usually start at 11,900 TL (£250), and solicitors' fees start at 22,300 TL (£500), depending on the services required and the complexity of the transaction.
- Purchase taxation is levied at 4% of the agreed price.
- Land registry charges are normally around 5,500 TL (£125).
- VAT charges may apply, typically between 1% and 18%, depending on the square meterage of the property.
These are indicative costs, and we can advise you before proceeding whether there are any other charges linked to a property you are interested in purchasing.
Choosing Where to Buy a Second Home or Permanent Residence in Turkey
Most expats relocating to Turkey or purchasing a holiday home already know the areas they'd most love to live in. However, learning more about each potential city or region or visiting at different times of the year can be useful.
Naturally, average property prices will vary between destinations. Below is a quick snapshot of the average costs based on the highest-demand locations.
Homes in popular tourist regions and central districts within coastal waterfront cities like Antalya and Izmir cost an average of 69,854 TL (£1,568) and 64,797 TL (£1,454) per square metre, respectively.
As you may expect, Istanbul’s fast-paced and affluent real estate market also commands the highest prices, alongside high rental yields, with apartments in central Istanbul costing an average of 112,728 TL (£2,530) per square metre.
Other regions and cities, including Bursa and Fethiye, are perhaps surprisingly affordable, with average prices currently at 50,417 TL (£1,132) per square metre in the ancient walled city of Bursa and 57,333 TL (£1,287) per square metre in Fethiye, famed for its golden beaches and thriving expat community.
Read more about Property Turkey – The Global Investor’s Guide to Buying Property in Turkey
About Property Turkey: With 20+ years experience in the Turkish real estate market, team Property Turkey are your experienced, friendly and independent overseas real estate consultants. Our head office is located in London, UK with regional operational offices in: Bodrum, Fethiye & Kalkan, Antalya and Istanbul.
***
Source Company: https://www.propertyturkey.com/
