Guide to Buying Property and Real Estate in Turkey
The Property Market in Turkey
Historically, it was nearly impossible in most instances for a foreign national to
purchase property in Turkey. Indeed, for the most part, Turkey
maintained a nearly absolutely blanket prohibition against foreign nationals having
the ability to directly purchase and own real estate in that country.
In 2003, the Turkish government liberalized the laws pertaining to the ownership
of real estate in that country. The actual steps taken by the Turkish government
to liberalize the real estate ownership laws in that country as far as foreign nationals
are concerned is discussed in a bit more detail later.
With the liberalization of real estate laws in Turkey, a growing number of foreign
nationals are taking a second look at the possibilities and opportunities that exist
when it comes to real estate in that country.
Investment Property in Turkey
Only in the past couple of years has there been any real movement in regard to investment property in Turkey . Of course, the primary
reason that this is a development of recent times is the fact that Turkish laws
regarding foreign ownership of real estate were very restrictive until the past
few years.
In any event, a growing number of foreign investors are turning towards Turkey when
it comes to real estate acquisitions. While there certainly is not a flood of foreign
money being invested in Turkish real estate at this
juncture, more and more foreign investors are taking a close look at what real estate
investment opportunities are now available in Turkey.
With that said and understood, many industry analysts maintain that now is the perfect
time for a foreign national to take steps towards investing
in property in Turkey. With Turkey's admission into the European Union,
Turkey will be able to reap many economic benefits that are attendant to being a
part of the EU. This likely will translate positively for men and women who have
invested in real estate in that country.
Residential Real Estate in Turkey - Single Family Properties
With the relaxation of Turkish laws governing the foreign ownership of real estate,
some foreign nationals are now taking a look at the prospect of buying residential
property in Turkey. While the movement of foreign nationals towards buying
residential property in that country has not been overwhelming at this juncture,
there is an ever increasing number of foreign nationals who are buying residential
real estate in Turkey with each passing month.
Most of the residential real estate that is being purchased in Turkey by foreign
nationals is located in more of the resort communities in that nation.
Residential Real Estate in Turkey - Apartments
When it comes to the purchase of residential Turkey property,
apartments are serving as solid investments that people from other nations are beginning
to purchase to gain a foothold in the Turkish residential property market. There
are a wide array of different types of apartments available for sale in Turkey at
this point in time. For example, there are very high end properties that are luxurious.
At the other end of the spectrum, there are more moderately priced units that are
suitable for men and women who find themselves finding a part of the year in Turkey
in business and desire a second residence for their time in country.
Popular holiday resorts have an abundance of apartments for sale.
Apartments in Altinkum are selling very well at the moment and from low
prices too.
Holiday Property in Turkey
The newest movement that has occurred as a result of the liberalization of real estate
ownership laws in Turkey is the advent of foreign nationals making the purchase
of residential properties to be used for vacation purposes. (More information about
the liberalization of the laws governing the foreign ownership of real estate is
discussed shortly.)
With Turkey's entry into the EU, a growing number of Europeans are examining the
country as a location for holiday travel. Historically, Turkey was not particularly
a destination of choice when it came to holiday travel by Europeans. Generally,
the same was true for tourists from many other locales around the world.
However, in recent years, more and more foreign nationals have marked Turkey as
a definite tourist destination. In addition, Turkish governmental officials as well
as business and civic leaders have taken strong steps towards promoting Turkey as
a travel and holiday destination.
Because of this movement, a notable number of men and women are now purchasing vacation
residences in the form of apartments,
houses and other types of villas in Turkey.
For the first time, some foreign nationals are purchasing residential property in
Turkey that they are using for their own travel needs.
In turn, these same people are then turning around and letting these residences
to other people during those times of the year that these foreign owners are not
using these properties for their holiday purposes. In short, many foreign investors
are now taking the initiative to turn their own vacation properties in Turkey into
profit generating enterprises.
Mortgage Options
When considering the options for a
mortgage in Turkey there are a couple of choices to consider:
- Do you consider raising finance on your existing property in the UK to cover the
whole cost of your purchase abroad? A good idea if the interest rate in the country
in question is a lot higher than it is here in the UK as you will pay a lot less
in monthly repayments.
- Do you secure a mortgage against the property from a local bank in the country of
purchase? This can be a wise option especially if the interest rate is lower than
our current UK interest rate. Most overseas mortgage / bank lenders will require
upto 30% deposit on mortgages. However, you will need to give some thought to how
you will service your mortgage payments each month especially if you are not living
or earning in that country as you may well lose out on exchanging money each time
to cover monthly expenses. Check out our
Foreign Currency page to see how you can save money in this example
- Some Builders and developers may well offer their own mortgage facilities on their
properties for sale. This can be beneficial to both parties depending on the logistics
of the mortgage or loan facility. Always check and compare with the two options
above before making your final descision.
For more details on Mortgages in
Turkey visit our Mortgage page in the Turkey section.
Specific steps to Buying Real Estate Property in Turkey
Historically, it was very difficult for a foreign national to purchase and own real
estate in Turkey. Indeed, overall it was nearly impossible for a foreign national
to directly own a freehold (or complete and transferable) interest in
real estate in Turkey. The laws restricting foreign ownership of real estate
in Turkey had been longstanding.
In 2003, the Turkish government significantly liberalized the laws governing the
ownership of real estate by foreign nationals in that country. Specifically, the
Turkish government enacted what is known as a reciprocity law when it comes to the
ownership of real estate by foreign nationals in that country.
The new law in Turkey governing the foreign ownership of real estate essentially
provides that if a Turkish citizen can purchase and invest in real estate in the
country from which the foreign national comes from, that same foreign national can
then, in turn, purchase and own real estate within Turkey. Thus, citizens from many
countries -- from the United States to the United Kingdom and many other nations
in between -- can now purchase and own real estate in Turkey.
The Turkish government moved to change its extremely restrictive real estate laws
in order to bring it more in line with the statutes and regulations governing real
estate ownership that are in place in the other nations that make up the European
Union.
Even with the easing of restrictions pertaining to the ownership of real estate
by foreign nationals in Turkey, there are areas within Turkey in which foreign nationals
are prohibited from purchasing and owning real estate all together. For example,
foreign nationals cannot make the purchase of or otherwise own real estate that
is in the vicinity of military bases and other similar sensitive locations. It is
important for a foreign national to pay close attention to these prohibitions so
that he or she does not become involved in a real estate sales transaction that
might need to be scuttled in the long run due to the location of the subject property
itself.
When it comes to purchasing investment
property in Turkey, it is vital that a very thorough title search be undertaken
to make absolutely certain that the property is free and clear from an absolute
and complete transfer to a purchaser. Turkish property is notorious for being encumbered
by liens and other blemishes to titles. Therefore, it absolutely is imperative that
a foreign national who is seeking to purchase and own real estate in Turkey obtain
the services of a capable lawyer or solicitor who can work to ensure that the property
is not encumbered.
The first step in the real estate purchase process for a foreign national (or anyone
else in Turkey) is an oral offer on a piece of real estate. If the offer is accepted
by the seller, a preliminary contract is drafted and executed between the buyer
and seller. At this juncture, the buyer is obliged to place a deposit on the property.
Generally, the deposit amount that is placed is between 4% and 10%. The deposit
is non-refundable if the seller backs out of the deal without cause. (Cause for
withdrawal includes a failure by the seller to provide clear title to the property
or the seller abandoning the deal.)
The final contract for sale of real estate in Turkey actually is executed at the
Land Registry Office. A new title or deed is then applied for directly at the Land
Registry Office. The new title and deed usually will be issued to the purchaser
of the real estate within about three months.
One final factor that a real estate purchaser needs to keep in mind when buying
property in Turkey. Unlike virtually anywhere else in the world, earthquake insurance
is compulsory in nearly all locations of the country. Therefore, a purchaser of
real estate in that country will want to make sure that this expense is factored
into the overall costs of buying real estate in Turkey. Generally, the costs of
such insurance is not prohibitive when it comes to buying real estate in Turkey.
Property Abroad always recommends using a
Solicitor or Lawyer
Further Reading on Turkey