Buying Property in Turkey: A Step-by-Step Guide

Turkey has a mild climate, rich history and fascinating architecture. The country is always full of tourists, and for most of them, it is not their first time here.  Every year a growing number of people want Turkey to be their second home. Turkey offers flexible investment conditions and you can obtain a second citizenship by purchasing property here. We have prepared a step-by-step guide to buying a property in Turkey with tips on choosing the best property for relocation and investment and avoiding common pitfalls.

• Buying Property in Turkey for Foreigners
• Buying Property for Living in Turkey: Is It Worth It?
• Best City for Buying Real Estate in Turkey
• Istanbul
• Ankara
• Resorts
• Ins and Outs of Buying Real Estate in Turkey
• Restrictions on Real Estate Purchase for Foreigners
• Real Estate Purchase Procedure
• Golden Visa and Citizenship for Real Estate Investment

Buying Property in Turkey for Foreigners

Turkey is an influential player in the world’s political and economic arenas. The country has a favourable geographical position and combines Eastern traditions with European living standards. Turkish real estate is perfect for relocation and investment. Buyers use their apartments for their own holidays during high season or rent them out.

The Turkish real estate market really took off after the Covid-19 pandemic. In 2022, real estate prices in Istanbul grew by 193.9% and average prices for what you can get property reached $1432 per square metre. Price growth slowed down in 2023, but did not stop. The Turkish real estate market remains attractive for investors for the following reasons:

• Reasonable prices. You can buy a fully furnished two-bedroom apartment in a small resort town for $50,000 to $70,000. The price of one square metre in Istanbul starts from $1500 for the secondary market and $2500 for new developments, which is significantly lower than in European capitals or US metropolitan areas.
• Payback potential. Profitability is expected to grow gradually. This makes the purchase of property in Turkey more profitable than, for example, in Cyprus or southern Europe, where prices are already quite high. According to Endeksa, an agency analysing the Turkish real estate market, monthly price growth averages 6% to 7%, after the record jumps seen in 2021 and 2022. Rental profitability is 6% annually for long-term rent and up to 12% to 15% for daily rent on the coast or in an old town. In Cyprus, the average profitability is 3.8% to 5%. If you resell your Turkish property, you can make up to 30% of the invested amount.
• Wide selection. There is a wide variety of property available — buyers can choose from luxury waterfront villas and compact city residential complexes. They are all cost-efficient because the economy and tourism continue to grow.
• Low cost of living. Expats from Europe and the US are astonished by Turkish prices for food and essential goods. There are plenty of high-quality fruits and vegetables here and you can buy them from the market for a reasonable price. If you exchange euros or US dollars for liras, you will get an impressive amount in return that will be sufficient for all your needs. For example, one month in New York costs $9700 including rent. The same lifestyle in Istanbul will cost you $2600.
• Simple purchase procedure for foreigners. From a legal point of view, the procedure is quite simple because the government is interested in attracting foreign investment.
• Obtaining citizenship. Purchasing a property worth $400,000 or more gives you the opportunity to become a citizen of the country in six months.

The Turkish real estate market is extremely diverse. Properties vary in price, design and in-house service depending on the region, its economic characteristics, and resort or business activity.

Buying Property for Living in Turkey: Is It Worth It?

Foreigners need to carefully choose their future place of residence in Turkey before buying a flat or a villa. More than 1200 regions of the country are not available for obtaining a primary residence permit, regardless of the grounds. In Istanbul, the most popular tourist districts, where the number of registered foreigners increased to 20% of the total number of residents, are also closed to residence permits; the same applies to central parts of many other large Turkish cities. You can find out more about the locations closed to residence permits on the Turkish government website. The list is constantly updated, so you should check the information directly with the municipalities.

Best City for Buying Real Estate in Turkey

Working foreigners usually prefer dynamic big cities where they can do business and enjoy the well-developed infrastructure. In a metropolis, you can make good money renting out housing around historical and business locations on a daily basis. Investors also buy off-plan real estate in promising residential complexes to resell later.

Istanbul

Istanbul attracts people from all over the world, all year round. Every square metre of land in this city is steeped with culture and history and so it’s not surprising that Istanbul is the top city for buying property in Turkey. The metropolis has high business activity, developed tourism infrastructure, a high standard of living, as well as many educational and medical centres. In addition, Istanbul is one of the world's most multifunctional transport hubs.

The city has 39 districts. Central areas are popular with investors, as well as the outskirts of the city, which are undergoing intensive residential development. Developers design their projects with everything one needs for a comfortable life. Residents can easily make it to cafes and restaurants, parks, sports facilities, and shopping malls. However, the central tourist areas of Beyoğlu, Fatih, Karaköy, Nişantaşı remain the most popular locations. They are closed for residence permits, but are attractive in terms of rental income, since the most popular tourist attractions are located here. Investors buy property here and usually rent it out on a daily basis.

Cihangir

This is Istanbul’s most creative neighbourhood where you can encounter artists, musicians, and other talents from all over the city. This place is perfect for those who value a relaxed atmosphere, cultural events, and free expression. A flat in a new complex or renovated historical buildings costs from $300,000 to $700,000. You can rent it out for $500 to 1500 per month.

Taksim

This area of the city is perfect for short-term rentals for tourists. The neighbourhood around Taksim square has retained its old architecture; there are several historical mosques nearby. The main advantage of this area is its landmarks and business amenities, and the real estate here has a particular old-fashioned charm. Rental costs go up to $100 for one night. There are many luxury residential complexes in the neighbourhood with expensive flats for $600,000 to $900,000. The area is considered to be completely developed, new buildings are rare here.

Karaköy

This neighbourhood is particularly popular with tourists. It is located in one of the historical districts, Beyoğlu, and overlooks the Galata Bridge. There are lots of classy cafes and restaurants where you can work with a laptop and the neighbourhood is always crowded. You can buy a flat here starting from $170,000 and then rent it out for $400 to $1000 per month. Daily rentals can bring significantly more money; people stay in Karaköy all year round.

Sarıyer

The spacious and green Sarıyer stretches from the centre of the city along the Bosporus to the Black Sea. This is one of the most expensive areas of Istanbul. Sarıyer is perfect for those who want luxury flats and ancient villas overlooking the Bosporus or even a private pier. Many properties in this neighbourhood once belonged to famous commanders and politicians. Flats cost from $400,000 to $900,000. The most affordable villa costs $800,000. Prices for luxury mansions reach hundreds of millions.

Etiler

This is an expensive neighbourhood in Beşiktaş with luxury villas and flats. It features modern business centres, luxury stores of famous world brands, and restaurants with fine cuisines. Wealthy investors come here to acquire a mansion overlooking the Bosphorus. The simplest flat in Etiler costs around $400,000. Prices for villas range from $1,000,000 to $12,000,000. Such a purchase gives you the right to obtain a Turkish passport; you cannot get a primary residence permit in Etiler, but the purchase amount makes it possible to get citizenship.

Nişantaşı

This is another luxury neighbourhood located in Şişli. It is not possible to get a residence permit in this area. This dynamic location is home to many restaurants and boutiques. Housing prices start from $250,000. Nişantaşı was the most popular area for real estate purchase under the investment programme until 2022 when the Turkish government took measures to regulate migration policy.

You can take a look at flats and villas in various areas of Istanbul in Housearch listings. There are options both for living and investment.

Ankara

The country's capital attracts working foreigners. For many people, buying real estate in Turkey is associated with Ankara, since it is home to offices of many companies and government institutions, but prices here are lower than in Istanbul. This is a big city with all the tools you need for doing business and having a comfortable life, including office spaces, shops, entertainment, sports facilities, and social infrastructure. Some neighbourhoods of the capital such as Altındağ, Beypazarı, Çankaya, Keçiören, and some others are closed to residence permits. Prices for flats in Ankara start from $75,000.

Resorts

Turkish resorts welcome millions of tourists and expats from different countries every year. These places are perfect for enjoying a relaxed lifestyle. People who plan to start a tourist business usually choose these areas. The most popular cities are Antalya, Bodrum, Alanya, and their neighbourhoods. Residential complexes here often resemble five-star hotels with all the associated infrastructure, entertainments, and services.

Antalya

The seaside resort is known for its high level of service, clean beaches, and affordable prices. Antalya is the third-most popular investment destination in Turkey. A rough estimate suggests that more than 100,000 foreign nationals already live here. The city combines all aspects of modern life and beach resort charm, making it perfect for both holidays and profitable investment. There are only three areas closed for residence permits: Döşemealtı, Konyaaltı, and Muratpaşa. Lara, Kepez, Altıntaş, and many others remain open. A decent one-bedroom flat in a new building here costs from $70,000. You can take a look at housing options in Antalya here.

Bodrum

This seaside resort is beautiful both in summer and winter. Villas with their own gardens are surrounded by breathtaking scenery. There are also flats in Bodrum, but buyers here are usually interested in houses. Expats flock to the city tempted by its tranquil atmosphere and seaside. Prices for flats in Bodrum are higher than in Antalya, starting from $90,000.

Alanya

Alanya is the warmest city in Turkey, always popular with tourists looking for an all-inclusive service at a low price. Alanya, located in the province of Antalya, is home to more than 38,000 foreigners of 123 nationalities. Expats value the city's simple layout with accessible public transport and bustling trade. It is very crowded in the summer but never snows in the winter. You can swim in the sea throughout the year. Property prices in new buildings start from $90,000.

Ins and Outs of Buying Real Estate in Turkey

Lots of affordable housing options and a friendly migration policy make it easy for almost anyone to move to Turkey. If you want to buy property in Turkey, you should remember several important things:

• According to the newest changes in Turkish migration policy, mortgages will not be available to foreigners in 2023.
• All foreign purchases are processed by a state notary and registered with the cadastral department.
• In addition to the basic cost of real estate, you will need up to 10% of the purchase amount for additional expenses: services of a lawyer and translator, land registration, assessment, and taxes.
• You cannot count on an automatic residence permit after a real estate purchase. There are locations that are completely closed to resident permits.
• To make transactions, you need an account in a Turkish bank, as well as a tax ID.
• One of the mandatory expenses is an annual DASK property insurance. You have to insure your property once a year.

Other problems may await the buyer of Turkish real estate when it comes to dealing with local bureaucracy. The actions of state authorities are sometimes inconsistent. For example, a foreigner buys a house, but it turns out that it was not commissioned. This results in additional costs and difficulties in connecting utilities. A house or flat may also have issues that the buyer cannot detect and so it is very important to have reliable legal support when buying property.

Restrictions on Real Estate Purchase for Foreigners

In Turkey, expats from some countries that are included in a special list by the government are banned from buying real estate; these are citizens of Syria, Cuba, North Korea, the Republic of Cyprus, and Armenia. In addition, you will not be able to buy a house in restricted military areas. There are also limits on the purchased land area: no more than 30 hectares for one foreign national. Citizens of Russia and Ukraine cannot buy real estate on the Black Sea coast of Turkey.

Real Estate Purchase Procedure

The property buying process in Turkey consists of several steps:

• Analyse the market and select a property;
• Choose a real estate agent;
• View the selected property or give power of attorney to the agent;
• Check the documents for the property, including its technical passport called iskan;
• Conclude a preliminary agreement and make a deposit;
• Order an independent expert examination of the property;
• Open a bank account, obtain a certificate of currency exchange and a tax ID;
• Have the buyer's documents translated by official translators who usually work with notaries;
• Submit documents to the cadastral office, pay taxes and state fees;
• Sign the deal and get the TAPU, a document confirming ownership.

If you follow these steps together with an experienced licensed real estate agent, you have nothing to worry about. However, you should carefully study all documents, especially the sales contract.

Golden Visa and Citizenship for Real Estate Investment

If you want to become a Turkish citizen skipping the naturalisation procedure, you can invest in real estate. There are two rules you have to follow:

• Cadastral value of the property must be at least $400,000. You can purchase several properties for this amount. It is recommended though to have one contract for all the properties.
• The property was never used to obtain citizenship previously.

Real estate used for citizenship cannot be sold for three years, otherwise you may lose your passport.

To obtain a residence permit, you just have to buy a property for $75,000 in a large city or $50,000 in a small town. Remember that the property must be located in an area open for residence permits.

In a Nutshell

Turkey is a country with a rapidly developing economy and real estate prices here are more attractive than in other popular investment areas. Buying real estate in Turkey has a high profit potential: up to 15% per year for daily rental and up to 30% for resale. The procedure of purchasing real estate is rather simple, but it is important to carefully read the contract and documents for the property; an experienced agent will help you with this. You can get a residence permit for purchasing property in Turkey, but it is important to remember that there are areas closed to residence permits. If you have purchased real estate with a cadastral value above $400,000, you have the right to apply for citizenship.

Cover photo: Ivan (Unsplash)