Choosing a Property in Turkey for a Foreigner: Expert Advice

Real estate in Turkey is in high demand among foreign buyers. However, purchasing residential properties abroad is always associated with reasonable concerns. Answers to the most common questions related to buying a home in Turkey and moving there for permanent residence can be found in this article.

Content:

In Which Turkish City a Property Is to Be Chosen?

In most cases, when choosing a property to buy, foreigners consider real estate units in popular tourist regions. The largest among them are Alanya, Antalya, and Istanbul. There can be no all-embracing suggestions regarding choosing a location, since every person has his or her own goals and considerations. However, here are several general points to keep in mind:

Istanbul features the highest property prices in the country, and living there is more expensive than in other regions.
Alanya is in high demand during the tourist season, but the infrastructure here is not so well developed as in Antalya.
In Antalya, you can buy an apartment connected to the central gas pipeline. In Alanya this is not possible, so heating in winter there requires additional costs.

In 2022, there were several changes in Turkish legislation regarding residence permits for foreigners. Now, in a number of districts of Istanbul, Alanya, Antalya, and other resort towns, foreigners cannot obtain a residence permit when purchasing a property. If you’re going to move to permanent residence in Turkey, you should better investigate this in advance, since the list of such areas may change.

What Are Turkish Real Estate Features?

Property types in Turkey are quite common: these are apartments and stand-alone houses. A separate category is land plots, but just a few would-be buyers wish to purchase them.

Houses can be offered as detached villas or townhouses. There are 2 kinds of apartments: standard and luxury. Upmarket housing units are located in well-maintained developments, usually with a spacious adjacent territory. As additional services, owners can offer a communal swimming pool, a fitness studio, or other amenities. The apartment market in Turkey has very special features:

There are no new studio apartments in a newly constructed residential property in Turkey, because there is a ban on this property type construction since 2017.
Duplexes are the most common property type. Duplex apartments in Turkey are very popular.
Apartment area is calculated according to the outer walls’ perimeter. This means that in fact the living area will be considerably less: the "official area" includes balconies, terraces, and partly the staircase.
A housing unit’s price is directly related to the quality of additional amenities in the development. The more amenities there are and the higher the amenities’ quality, the higher are the apartment’s price and the monthly fee for the residential community’s maintenance.

Is It Possible to Purchase a Property on a Limited Budget?

Despite the fact that prices in Turkey almost doubled in 2021-2022, you can still find properties worth about $150,000 in the country. Usually, this is the price for under-construction properties. The average apartments’ cost in the country is $200,000, but prices vary greatly depending on the specific region. If you have a considerable budget, foreigners can take advantage of a mortgage loan. Another advantageous feature is an installment plan set by the developer. It allows you to pay for you property in installments over a certain period and not lose funds to pay commissions to the bank. The farther a property is from the sea, the cheaper it is. It should be noted, however, that low costs make real estate units less investment attractive. Further liquidity directly depends on the price and quality of the housing stock: cheap developments might not find neither a tenant nor a new buyer.

How to Get a Residence Permit or Citizenship When Moving to Turkey?

In 2022, changes were made to the country's legislation: currently there is a mandatory minimum property price needed to obtain a residence permit. To qualify for a residence permit, the applicant must purchase an apartment worth at least $75,000 in major cities or $50,000 in the provinces. A complete list of regions with set prices can be found on the Turkish Government official website. There are also areas where registration of a residence permit is not available to foreigners currently. To obtain citizenship, you must buy one or more properties with a total value of at least $400,000. To obtain citizenship by investment, passing the Turkish language proficiency exam is mandatory.

Is It a Good Idea to Purchase a Property in Turkey in 2022?

Despite the increase in prices, the foreign buyers’ interest in investing in Turkish real estate is growing. According to the Turkish Institute of Statistics, foreign buyers purchased 72.7% more real estate units during the first half of 2022 than during the same period in 2021. The most popular areas are Istanbul, Alanya, and Antalya. Experts believe that housing prices will continue to increase in the future. There are a number of reasons for it, including the depreciation of the local currency (people are buying housing to invest money that is rapidly depreciating) and increasing construction costs. Therefore, experts advise not to delay choosing a property if the decision to purchase a real estate unit has already been made.

What Additional Costs Should be Expected?

If you’re going to purchase an apartment or house in Turkey, you will need:

Order an expert cost estimate. This is necessary for further tax base calculation, as well as for obtaining a residence permit. It will cost you about $90. Lead times are 2 to 3 business days.
Pay property tax upon receipt of TAPU. Its value is 4% of the property’s cost.
Pay service fee ($19), TAPU tax ($60), and apartment purchase fee ($120).

It is possible to purchase real estate by proxy. In this case, the agency takes care of everything, and the buyer is required to have a notarized power of attorney for his representative. The cost of a power of attorney varies from $50 to $100.

Prices are quoted in liras to dollars at the current exchange rate at the time of publication.

Is It Possible to Buy a Property With No Intermediaries?

Technically, if you purchase an apartment in Turkey, you can do it without the local realtors’ help. Plenty of sites publish ads currently on offer. But in this case you need to clearly understand all the peculiarities of local legislation and speak English or Turkish. A deal with a professional broker’s services is quite safer. Real estate agency experts will not only help you choose an apartment, but also suggest the real market price of the chosen property, assist you with paperwork and help you in obtaining a TAPU.