What is the Cost of Building a House in Turkey?

Turkey's temperate climate, numerous seaside resorts, historical landmarks, and high living standards make it an appealing destination for seasonal or permanent residence. Foreign nationals can secure temporary or permanent residence permits in the republic by investing in real estate. Instead of purchasing pre-constructed properties, you have the option to build a house based on your own design on a bought plot. Consequently, the trend of constructing cottages and villas in the country is gaining popularity. Below is an exploration of the factors that influence the cost of building a house in Turkey.

• The Advantages of Building Your Own Home
• Stages of Construction for Detached Houses in Turkey
• Buying an Off-Plan House or Building It from Scratch?
• The Legal Aspect
• The Cost of Land Plots in Turkey
• Construction Cost Index Growth in Turkey
• Materials and Property Cost

The Advantages of Building Your Own Home

The Turkish real estate market presents a range of options to potential buyers, from small studios in modern residential complexes to luxurious turnkey cottages. However, several factors drive investors and expatriates to undertake construction projects independently, rather than opting for ready-made solutions.

• You can carry out your individual project choosing a specific architectural style, room layout, site zoning, and design.
• Land plots in different regions of the country are rather moderately priced.
• The quality of the materials used ensures confidence.

The appeal for personalised construction in the country endures as it provides an avenue to invest in distinctive real estate. While the overall cost of such a home may surpass the prices of standard villas offered by developers, it ensures the owner receives a creation aligned with their specific aspirations and intended uses.

Stages of Construction for Detached Houses in Turkey

In most cases, land plot buyers delegate the design and further construction of a detached house to a construction company. In accordance with existing standards, work is split into several stages:

1. Purchasing a plot, preparing a project, conducting a geological examination.
2. Concluding an agreement with the contractor and obtaining permits for construction.
3. Preparing the territory, pouring concrete for the foundation, laying the hydro- and thermal insulation.
4. Construction of the structure, roofing, finishing work, connecting the communications.
5. Handing over the facility and receiving a technical certificate for the house for commissioning.

Given the strict enforcement of technical standards for construction right from the initial site work stage, members of the state commission may visit the construction site.

Buying an Off-Plan House or Building It from Scratch?

Construction companies in Turkey provide the option to purchase houses at the construction stage, with the flexibility to modify the design project or tailor the construction services to your preferences.

Buying a home during the off-the-plan stage alleviates the hassles of locating a plot, registering ownership, and securing a building permit. This approach enables buyers to acquire a house in cities where finding an empty plot of land can be challenging. Developers frequently purchase prime lands with old structures along the coast in areas like Antalya, Alanya, and other cities with well-established infrastructure, to clear these plots for subsequent development.

Acquiring real estate at the off-plan stage doesn’t preclude the future owner from making alterations to the decoration, interior design, and layout. These details can be negotiated during the construction process. Moreover, developers frequently offer discounts or propose interest-free payment plans throughout the construction period.

The Legal Aspect

Administrative authorities meticulously oversee all construction activities, including private ones. To secure a building permit for a specific plot, it's crucial to first verify whether the area has undergone zoning. If the municipality has conducted such work there, obtaining permits should be straightforward. Typically, the issuance of a licence takes less than five weeks. However, if the area hasn't been zoned, it indicates that the land isn't designated for construction, and any structures built on it would be deemed illegal.

The category of land designated for foreign nationals to erect buildings in Turkey is termed ARSA. Expatriates may purchase plots with an area not exceeding three hectares. During the zoning process, land designated for construction is also categorised based on its intended use: either for commercial or private development.

As per the republic's legislation, upon purchasing a plot of land, you have a two-year window to commence construction before your licence expires. Additionally, when acquiring a land plot, a duty amounting to 1.5% of the plot price is levied on both the buyer and the seller. The annual tax on private buildings stands at 0.3%; however, new properties enjoy a five-year exemption.

To secure a building permit, you are required to submit the architectural design to the municipality of the city where the site is located, and then await approval of your application and issuance of the licence. It's important to be cognizant of the fact that all houses in Turkey are subject to quality control. Constructing a building without a permit could lead to a denial of the iskan—a technical passport for real estate issued upon commissioning — in the future.

The Cost of Land Plots in Turkey

For a foreigner to purchase a land plot in Turkey, only an international passport and the requisite funds are needed. The price of developmental land varies based on several factors: the site's location, total area, proximity to infrastructure, distance from both the sea and the city centre, and the availability of utilities. Price tags begin at $50,000 for a 700 sq. m. plot in a smaller coastal city, escalating to $400,000 for a plot of equivalent size in sought-after locales like Alanya or Bodrum. In the coastal regions of major resorts, where hotel construction is prevalent, land prices soar into the seven digits or beyond.

When selecting a construction site, it's crucial to examine the soil characteristics. Certain regions within the republic have a heightened earthquake risk, which constrains developers in their choice of materials. To enhance a building's seismic resistance, it should be constructed from reinforced concrete monolith, while materials like brick, aerated concrete, or foam blocks can be utilised solely for internal partitions.

In seafront zones, special attention is required for the ventilation and air conditioning of buildings due to the area's high humidity; hence, high-quality waterproofing is crucial. This is why in coastal areas, flooring is often finished with tiles instead of wood, and air conditioning is installed in every room. These nuances invariably impact the final cost of the house.

Construction Cost Index Growth in Turkey

According to the Turkish Statistical Institute, the construction cost index in the republic has been exhibiting steady growth. In 2023, it registered at 72.37%, while in 2022, it escalated by nearly 107% compared to 2021. What underpins this trend? A surge in the construction cost index signifies a rise in the expenses associated with construction activities. Primarily, this entails an uptick in the cost of construction materials and labour. Since many construction materials are sourced from abroad, the depreciation of the lira also reverberates through the costs.

The escalation in construction costs also explains the uptick in prices for completed real estate: as per the Central Bank, the most pronounced growth rates for housing have been observed in Istanbul, Ankara, and Izmir. As of summer 2023, the average cost of housing in the country stood at $910 per sq. m. The annual increase in construction costs makes independently building a house in Turkey for resale a profitable endeavour.

Materials and Property Cost

The costs of building a cottage in Turkish regions depend on the surface area of the property, number of storeys, class, materials used, and other parameters. In Turkey, there are five classes of construction quality from low-cost to luxury.

Stone houses are considered the most affordable. The average cost of such buildings is from $7.5 to $21 per sq. m., while for brick and stone buildings, the price range starts at $10.5 and goes up to $57 per sq. m. Concrete and steel structures are the most expensive, the cost of their construction ranges from $15 to $120 per sq. m.

According to experts, constructing a one-storey cottage with an area of about 100 sq. m. in Turkey will cost you at least $150,000. The final costs will depend on the type of finishing and other details.

In a Nutshell

When deliberating between purchasing a pre-constructed property or building one from the ground up in Turkey, it's vital to weigh the advantages and disadvantages of each option. The cost of construction materials, land plots, and labour, among other expenses involved in the process of constructing a detached house in the country, escalates year after year. However, building a cottage based on your own design grants you the liberty to actualize all your preferences concerning layout, finishing, plot zoning, and interior design. On average, private construction would range from $7.5 to $120 per sq. m. of the finished property, in addition to the cost of the land plot.