Previously we briefly looked into buying real estate in Turkey. It is such a profitable and promising direction that we decided to explore it in more detail. The most profitable properties and the most advantageous conditions are already waiting for you.
Buy now!
Real estate prices in Turkey continue to rise. Just at March 2024 the cost per square meter increased by 57%. It should be clarified that we are talking about the amount in lira and without taking inflation into account, but still this is an impressive figure. The average price per square meter was then fixed at 25,000 lira, which equals $774. So, a good property could be bought for $100,585, which is quite acceptable. As for the return on investment, it will take only 15 years to fully recover the funds through rent. To give you an idea of how good this figure is, let's look at rating of countries with the highest profitability Latvia takes first place with a yield of 8.06%, which translates to 12.4 years in human language.
Currently, the highest real estate prices in Turkey are observed in Istanbul and Izmir - the two largest cities in the country. The average cost per square meter in the capital is at $1,200. In Izmir, you can find housing slightly cheaper at $1,000 per square meter. Ankara takes the last place in the top three leaders with a price of $645 per square meter. When investing, it is worth being forward-thinking, so consider also looking at less popular settlements where the highest growth in real estate prices has been observed over the year.
- Mugla - +78%;
- Horde - +79%;
- Khatay - +84%.
Rapid price growth managed to scare away many foreign investors. Compared to March 2023, demand has dropped by 48%. Currently, it continues to gradually decrease and has already fallen by 4% in March of this year. It is understandable why one would not want to overpay, but risk takers, on the other hand, may jump on the wave of rising prices and profitably resell real estate, doubling their investments in just a few months. We are not encouraging this, but it is something for you to think about in your free time.
Mortgage in Turkey for a foreigner
If you think that Turkish prices are biting, you can resort to installment payments. Earlier we mentioned that for some reasons, mortgages in Turkey were temporarily unavailable for foreigners. But interest-free installments have become an excellent alternative when it comes to buying property in Turkey primary market. All developers unanimously agreed to make concessions to foreign investors, and some even consider the possibility of extending payment deadlines for another year and a half after the completion of construction and putting the object into operation. Although these conditions make buying easier, they are not a panacea. Many still do not have enough money to enter into an agreement, so a new mortgage program for foreigners has been actively developed since February 2024. You can take advantage of it right now, but first let's find out the terms.
Only certain types of real estate are available for purchase with a mortgage. For example, when investing in Alanya, the minimum cost of the property must be €80,000 and only modern apartments are considered. In Istanbul, prices will be significantly higher and only modern apartment with finished renovation can be purchased in a new building. If you have long dreamed of obtaining Turkish citizenship, it is worth choosing real estate with a minimum value of $400,000. With such a large purchase, residency is a gift. As you may have noticed, we have provided prices in several currencies at once. This is because mortgages can be arranged in these currencies. As for the monthly interest rate, it directly depends on the term:
- For a loan duration of 1-5 years - 1.15%;
- For a loan with a duration of 5-10 years - 1.25%.
To arrange a mortgage for the purchase of real estate, you will need a standard set of documents:
- passport;
- Identification number obtained in Turkey;
- Ukrainian residence permit with translation into Turkish;
- Income statement for the last 3 months, translated into Turkish and certified by a notary.
- Copy of the property ownership certificate for the purchased object;
- Turkish phone number;
- Insurance policies taken out to protect housing (≈750 €/year);
- Spouses must also provide a marriage certificate and a written agreement for the operation to be performed.
Before preparing the document package, make sure that you meet all the requirements and have the right to apply for a mortgage. First of all, look at your new home. It should be completed fully or at least 90%. In this case, you can get a loan for 50% of the estimated value of the property, but only if neither you nor members of your family have other real estate in Turkey. If someone in your family has keys even to the most unremarkable apartment in the suburbs of Istanbul, the maximum loan amount is halved and will only be 25% of the value.