Turkey Investment Property

If you are considering buying a property in Turkey for investment, now is the time to make your move ! At a time when Antalya International Airport has hosted an amazing, 8 million tourists in 2014, 10 million tourists in 2015, and 14.5 million tourists in 2016, a sharp increase traffic to all the Turkish holiday resorts over 2018 is predicted. Many people believe that the current rate of development will not be able to keep pace with the increased demand for holiday accommodation rentals in Antalya, Turkey .

Completed Turkish real estate sales to foreigners went up to 46% in 2015 reaching to $3.1 billion, an amazing 63% in 2016 reaching to a total $4.6 billion! (more than Spain and Portugal together) clearly shows that even without EU membership, purchasing a property in Turkey is safe. Everyone in Turkey remains optimistic about Turkey's eventual EU membership, but even before membership Turkey has already become an international property hot spot because of the ease in purchasing property, constant price rises and low taxes.

A total of 88% foreign owned Property in Turkey is located in 10 cities, the top 5 being Antalya with 61.838 properties; Istanbul with a surprisingly low 25.812; Mugla (the location of Bodrum) with 30.769; Aydin (Didim, Akbuk and Altinkum) with 14.116, and Izmir with 5.533 foreign-owned properties in year 2014.

Facts and figures for Turkish Property Investors

The result ? House prices are set to rise in 2018 still further so it’s a great time to invest. It’s impossible to predict exactly what return you’ll get from your investment but recent reports from various sources agree that it will be high. For example:

• DHA Press has recently reported that property prices along Turkey's Mediterranean and Aegean coasts rose by more than 52% in the last year alone.

• Research by Turkey's National Statistics Institute predicts that Turkey’s immigrant and population will rise as much as 5.5 million by 2018, representing in the region of 13% of its population, compared to just 11% in 2015. The rising demand for property will continue to fuel the growth of the property market.

• Turkey's Ministry of Development has gone on record as saying that the average increase in Turkish real estate prices was 28 percent in the last quarter of 2016 compared to the same period in 2015.
  
  
• The 'top state' pulled up for population increase in Turkey last year was Antalya where every year about 50.000 people move to. At an 18% high rate, it even leaves Istanbul behind.

What to Invest in Turkey?

Before you decide on what home for sale in Turkey you want to buy, take the time to do some research. Clearly, if you’re planning on earning an immediate income from your Investment in Turkey you should look for an existing property (commonly referred to as a resale property) in an area frequented by holiday makers. Take a look at the rental market, get a feel for how much you can rent your villa or apartment for. Don’t forget to factor in other costs such as maintenance and property management charges (someone will have to look after the property in your absence) and remember that property with pools that are close to the beach will yield higher rental incomes.

Buying a run down place for renovation has the advantage that you can improve the property in ways that will specifically attract holiday makers. It’s a good way of adding value to your property while converting your economical investment into a higher yield, and getting building work done in Turkey is a choice for all. As for most of the part, the high quality Turkish craftsmanship will impress you.

Off-Plan Investments and Buy-to-Sell Properties

Another popular option is to buy off-plan. This is where a developer decides to build a number of properties on a large plot and needs to sell them before they have been built to fund the development. The advantage here is that you can secure the Turkish property by paying a deposit and then a percentage (usually around 3-5%) of the purchase price.

Buying Property in Turkey Benefits at a Glance

• As the development progresses and the properties get nearer completion, their values rise because there is less urgency to sell them and prospective buyers can get a clearer idea of what the final product looks like.

• As the development progresses and the properties get nearer completion, their values rise because there is less urgency to sell them and prospective buyers can get a clearer idea of what the final product looks like.

• If you sell your property before completion or sell brand new property within 5 years, as a foreigner you won’t have to pay any capital gains tax.

• Properties that are sold off-plan are usually very competitively priced because the developer will want to maximize the amount of cash he has to fund the development. In other words, the more cash the developer has, the less he has to borrow and if he borrows less then he pays less interest to his bank.

• You can choose a prime location within the development and you can often specify the furnishings and decor of the property, all of which helps you to get a better return on your investment.