How to buy property in Turkey as a foreigner?

Turkey, with its rich history, diverse culture, and beautiful landscapes, has become a magnet for foreign investors and those seeking a second home in a country that straddles two continents. However, the journey to property ownership in Turkey comes with a set of regulations and processes that can seem difficult to an outsider. In this article, we will guide you through the process of buying property in Turkey for foreigners.

Is it a good time to buy property in Turkey?

Turkey is currently undergoing robust economic growth and achieving stability, making purchasing property in Turkey an attractive option for investors. This favorable economic climate is enticing both local and international buyers to invest in the Turkish real estate market. As of the fourth quarter of 2023, the overall Gross Domestic Product (GDP) growth rate was 4.5%. With gross returns of about 6.36%, buying real estate in Turkey also has appealing rental yields. Nonetheless, foreigners looking to invest in Turkey property need to be aware of the rapidly rising cost of homes and the risk of buying property in Turkey. 

Can foreigners buy property in Turkey?

Foreigners can buy property in Türkiye, although there are some specific restrictions and rules to consider. Under the law, foreigners are allowed to own buildings and buy land in Turkey. However, it sets a cap of 10% that a foreign national can own when they buy land in Turkey, and property transactions are prohibited in regions classified as military zones. Foreigners are entitled to sell, lease, or leave their property just like Turkish citizens are. However, foreign buyers should be ready for a lengthy procedure that may involve extra paperwork when purchasing property in Turkey. In certain cases, a military clearance requirement is required if the property is located close to critical areas.

Where is the best place to buy property in Turkey

When it comes to selecting a location for buying property, the choice boils down to personal preferences and lifestyle needs. Below are the five best places to buy property in Turkey:

1. Istanbul: It is a cultural center and stands out as a busy metropolis with an average house price of ₺ 44,387 ($1,332) per sq.m. This city is perfect for those who thrive in a cosmopolitan environment and desire an urban life with access to diverse neighborhoods and historical landmarks when purchasing property in Turkey.
2. Antalya: This stunning Mediterranean hub is famed for its clear coastline and year-round sunshine, making it a magnet for tourists and property seekers alike when buying property in Turkey. The average property price per sq.m. for properties across Antalya is around ₺ 5,748 ($172). It is perfect for foreigners looking to invest in Turkey property and enjoy a holiday atmosphere every day.
3. Izmir: Izmir is a combination of a modern metropolis and historical treasures. It has seen substantial growth in property prices, rising to ₺ 34,774 ($1,043) per sq.m. This city appeals to individuals seeking a vibrant, contemporary life with a touch of the tranquility offered by its beautiful coastal edge.
4. Ankara: The capital offers properties at an average cost of ₺ 23,304 ($699) per sq.m. It displays both bureaucratic formality and academic richness, making it ideal for those in search of a place with a strong political or scholarly community when buying property in Turkey.
5. Bursa: Close to Istanbul, Bursa is well-known for its historical significance, natural hot springs, and proximity to the ski resort of Uludağ. The average house price per sq.m. in Bursa was ₺ 11,556 ($347). It is a good place for property investment in Turkey for those wishing to enjoy the atmosphere of a large city without the intensity of Istanbul.

How to buy property in Turkey: Step-by-step process

Navigating the process of buying property in Turkey requires understanding the local market dynamics, legal requirements, and financial implications to make well-informed decisions. Here are seven steps on how to buy property in Turkey.

Step 1: Conduct thorough research

Initiate your property search by conducting extensive research. With Turkey’s varied regions and property styles, it’s vital to pinpoint your location and housing preferences. Examine the current market trends, pricing benchmarks, and requirements for foreign property acquisition. Engage with a local property agent experienced in international sales to refine your search.

Step 2: Find your ideal property

After equipping yourself with market knowledge, commence your property hunt when purchasing property in Turkey. Scan through listings or lean on your agent’s expertise to isolate properties that satisfy your wants and fiscal limits. Touring a range of homes will afford you a clearer perspective on the value and options available when buying real estate in Turkey.

Step 3: Make an offer and negotiate

When a property resonates with you, present your offer and negotiate the purchase price and terms. Once an agreement is reached, a preliminary contract is typically ratified, accompanied by a buyer’s deposit to formalize the agreement.

Step 4: Conduct due diligence

Before you proceed, it’s important to investigate the property’s legal status. Diligence checks include validating the title, confirming there are no lingering liabilities, and securing military approval to ensure the property’s locale is not restricted.

Step 5: Hire a legal counsel

Given the legal complexities inherent in property purchases when buying property in Turkey, enlisting a solicitor proficient in Turkish real estate law is invaluable. Your chosen legal representative will scrutinize the provisional contract, guide you through any outstanding legal hurdles, and facilitate the official title transfer.

Step 6: Complete the purchase

With all due diligence performed, the sale can now be concluded when buying a house in Turkey. This entails executing the definitive contract, paying the balance due, and formalizing the property handover at a notary. Settlement of relevant taxes and charges also occurs at this juncture.

Step 7: Register the property

The closing step is the legal transfer of property ownership at the local Land Registry, where you’ll acquire the title deed, which is the tapu. Additionally, you should undertake the transfer of utility services into your name, oversee any refurbishments, and consider insurance when purchasing property in Turkey.

House prices in Turkey

Over the recent five-year span, house prices in Turkey have shown remarkable expansion, especially in the segment concerning residential flats. The average purchase price when buying an apartment in Turkey has surged impressively by 141%, moving from ₺ 1.43 million ($42,844) in 2018 to a substantial ₺ 3 million ($90,000) by 2023. The trend is evident in urban hubs such as Istanbul, where prices for the same period soared from ₺ 2.5 million ($75,000) to ₺ 5 million ($150,000). The property prices in Turkey indicate a vigorous market propelled by factors like increased foreign investment, rising inflation, and expansive urban planning when purchasing property in Turkey.

Fiscal responsibilities in Turkey

The fiscal responsibility tied to buying a house in Turkey is the annual property tax imposed on homeowners can vary between 0.1% to 0.6% of the property’s valuation, depending on its location and category. Upon purchase, there’s a title deed transfer fee amounting to 4% of the assessed property value, which is customarily divided equally between buyer and seller when buying property in Turkey. Additionally, purchasers should budget for about 1% of the property prices in Turkey for administrative expenses, including notary and registration fees. It’s also prudent for new homeowners to consider the regular costs associated with property upkeep, such as maintenance, utilities, and insurance, which fluctuate based on the size, type, and locale of the property.

Can I buy property in Türkiye and get citizenship?

Foreign nationals can obtain Turkish citizenship by investing in real estate, with the minimum investment threshold set at $400,000. The type of eligible properties includes houses, commercial, industrial, as well as buying an apartment in Turkey. Following regulatory updates in December 2023, only constructed buildings or a valid building permit qualify when buying property in Turkey and citizenship applications, excluding undeveloped plots of land.

Investors are not limited to purchasing a single property and may choose to accumulate multiple properties to meet the minimum investment requirement. However, each property can only be used once in the application process when buying property in Turkey for residency. This means that property utilized for residency cannot be resold for the same purpose to another investor.

Risks and pitfalls of buying property in Turkey

Property investment in Turkey offers appealing opportunities due to its stunning landscapes, historical landmarks, and bustling cities. Yet, potential buyers should be cautious of the challenges and hazards involved. Below are the risks and pitfalls of buying property in Turkey:

• Scam awareness: To prevent illegal transactions, it’s critical to authenticate real estate agent’s credentials and the validity of property ownership documents.
• Market fluctuations: Property values in Turkey can be unpredictable, with some regions experiencing significant growth while others see less movement.
• Language miscommunications: Those who don’t speak Turkish may encounter difficulties in fully understanding real estate contracts, which could lead to conflicts.
• Ownership limitations: Foreign ownership is restricted in specific regions of Turkey, particularly near strategic or military sites.
• Complex legal landscape: The legal processes involved when buying property in Turkey pitfalls, especially near military areas or coastlines, can be complex and demand extra permissions.
• Necessity of legal representation: Employing a knowledgeable attorney is essential to effectively navigate through the complexities of Turkish property law.
• Comprehensive due diligence: Before making a purchase, it is indispensable to thoroughly investigate the property’s legal status, any liabilities, compliance with zoning regulations, and prevailing market conditions.

Buy property in Turkey with Own Property Abroad

Are you thinking about buying property or land in Turkey? Let Own Property Abroad help you navigate through the seamless and efficient property acquisition process. Our team’s deep understanding and experience in the Turkish real estate market enable us to support you with legal requirements, find ideal properties, secure advantageous deals, and perform comprehensive due diligence.

With our specialists at your side, you won’t have to tackle the intricacies of the Turkish property market by yourself. For more details on how we can assist you, please enter your information below or email us at [email protected].

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