With the expansion of the country’s real estate sector, investing in houses in Turkey has produced a significant return for their investors, particularly between 2010 and 2020. Property in Turkey is relatively inexpensive, yet the houses provide a luxurious lifestyle.
Turkey is still finding its feet in certain aspects because it is relatively new to selling to international purchasers, and you must keep in mind that Turkey is a big country with lots of territories to develop. Here are the reasons why houses in Turkey are so cheap.
1. Exchange Rate Differences
In the case of the lira fluctuating, there is no doubt that the exchange rate has a significant impact on the real estate market, construction enterprises, and construction costs. This will affect pricing, especially as the lira exchange rate varies a lot. It is true that as the lira falls against the dollar, costs rise, and so does the chances that the property’s price will climb by the same amount, but there is always a lag between the two, and those with hard currency, such as dollars or euros, have a chance to buy and profit. For example, a million lira apartment at a 7.5 exchange rate is worth US$133,000, while at 7.8 it is worth US$128,000, netting you US$5,000.
With the prospect of the lira falling further, we must act quickly to profit from the exchange rate, lest construction enterprises raise prices to match the currency rate, and you lose the opportunity. Inflation makes the issue worse. The purchase may be lost due to the high dollar rate, which may decline again. One should not rely on currency rate changes to calculate profit or loss, especially when buying property in Turkey, because profit and loss cannot be ascertained instantaneously, i.e. at the time of purchase, but requires patience.
Several variables are influencing the Turkish exchange rate, which can be summarized as follows:
- The increasing demand for domestic currency leads to an appreciation of the Turkish lira against the dollar, which is not necessarily a positive thing.
- In the trade balance, exports minus imports.
- Inflation, price increases, and rising interest rates all raise demand for local currency.
- Multiple conditions exist in Turkey’s international political relations.
- External debt affects exchange rates because corporations borrow hard currencies from European banks to expand. They need these hard currencies to repay their debts, increasing demand, and the exchange rate.
2. 2023 Vision Plan
As investment returns improve, more investors seek out the source of this tempting investment. We will not overlook the period for the investment process, whether in real estate or elsewhere, because time is one of the most crucial aspects impacting the investment’s success. This time we’re talking about Turkey, whose economy is ranked 19th globally and on track to be in the top ten by 2023. When an investor concludes that the country’s economy is strong, he determines that the investment is safe.
Due to its vital role in the Turkish economy’s progressive growth, the real estate sector is one of the country’s top three businesses. Turkish property is large, with many alternatives. With the acquisition of a property or group of properties, a Turkish citizen can be obtained with a three-year residency requirement. Most importantly, it has attracted hundreds of foreign investors seeking Turkish citizenship and investing in Turkey.
The first influencing aspect is the investment time frame, as investors seeking Turkish citizenship and investing in property for three years must choose a place that is easy to sell and profitable. To start the Turkish real estate ownership process, short-term investors need a different form of investment than long-term investors.
The Turkish government conducted an in-depth study and based its 2023 vision on strategic objectives, without which it would be unable to welcome the year 2023. Among the most vital are:
- Turkey wants to be one of the top ten economies by 2023.
- Turkey aims to double its GDP annually.
- To attain this goal, Turkey’s economic agenda encourages persons seeking Turkish citizenship to buy property in Turkey.
- In Vision 2023, Turkey’s unemployment rate was to be reduced to 5%.
- In its centenary year, Turkey’s Vision 2023 aims to double international trade to US$1 trillion yearly. Foreign exchange is an important financial resource for the country.
- Aiming to grow exports by US$500 billion yearly, the 2023 Vision
- By 2023, Turkey expects to create 20,000 megawatts of wind energy.
- Turkey aims to add 600 MW of geothermal power.
- Turkey hopes to reduce its energy consumption by 20% by 2023.
- By 2023, Turkey would not have fulfilled its whole ambition unless it draws 60 million tourists and earns $50 billion.
- The 2023 Vision prioritizes building new trains, expanding the high-speed train network, and finishing 15 thousand kilometers of dual highways.
- Turkey became the world’s first real estate capital after years of being recognized as one of the greatest places to live and invest, increasing international investment in Turkey real estate and desire for Turkish citizenship through property purchases.
3. Supply and Demand
The vision plan for 2023 evoked a business model known as supply and demand. When applied to the housing market, this refers to the number of properties for sale versus the demand, i.e. the number of interested buyers and sellers. In areas like Didim and Altinkum, where building land and vacant properties are plentiful, prices per square meter are low. These are popular with real estate investors. Simply because the market changes and they have ideal capital appreciation if they keep the property for the medium to long term.
The outskirts of European Istanbul are an excellent example of this. Massive development has occurred in areas such as Buyukcekmece and Kucukcekmece. Furthermore, the new Istanbul airport has increased real estate prices, and speculation about the planned Istanbul canal route has drawn real estate investors. However, in other areas, the number of vacant properties and available land versus buyer interest is low, driving up prices.
Real estate investment in Turkey has become one of the most prominent and prosperous investment sectors, owing to the Turkish government’s special attention to this sector, in addition to the occasional facilities and tax cuts. This has encouraged both domestic and international investors to enter the Turkish real estate market and take advantage of the available investment benefits and opportunities, in addition to the rewarding profit rates. In this article by Binaa Investment, we address some indicators and statistics that confirm Turkey’s the real estate sector’s stability and long-term prosperity.
4. Developing Cities
The finest cities in Turkey are determined by their cultural and economic advancement, as well as their transportation, construction, and other infrastructure projects. Turkey is a rising global real estate star. Buyers from abroad have increased substantially in Turkey. From 2016 to 2019, foreigners bought 250% more properties. This amazing rise has many causes.
The Turkish state values citizenship. It has many benefits. It offers various visa-free agreements and a promising financial future. Achieving Turkish citizenship is straightforward with the Turkish government’s help. A US$400,000 investment property is necessary to apply for Turkish citizenship. Tradition, economy, and quality of life distinguish Turkey. Overseas buyers bought the property in 2020. Despite the worldwide crisis, foreigners bought homes in 2020.
Istanbul, Turkey’s tourism and investment magnet, has been excellent. The city has long held its status. The new Istanbul Airport, for example, is located in the Greater City, which is the meeting point of East and West and covers an area of 76.5 million m2. Old, new, tourist, and commercial regions all have suspension bridges and the highest structures.
A spike in investment earnings that smashed records has not yet reached other Turkish districts, and the largest gardens will soon be followed by the largest mosques. The data comes from research that reveals Istanbul as the most vital development halt. It has a population of 16 million. 40 municipalities make up the metropolis. Its properties are a significant rival, yet it is possibly Turkey’s top property. As a tourist destination, Istanbul’s main artery, the Bosphorus Strait, must be mentioned, showcasing its stunning brilliance, making it one of the most attractive cities in Turkey.
| Beylikduzu |
3+1 |
$ 1,555,000 |
| Bakirkoy |
4+1 |
$537,498 |
| Zeytinburnu |
5+1 |
$ 1,404,000 |
| Kadikoy |
2+1 |
$ 135,985 |
| Basaksehir |
2+1 |
$ 153,204 |
The Aegean Sea and its gorgeous shoreline are linked to the beauty of Izmir’s old city, making it one of Turkey’s most important and best tourist destinations. Izmir is famous for its trade fairs and attracts traders from all over the world as well as Turkey. With nine recognized universities, it attracts students from Turkey and many other countries. Its archaeological and tourist attractions place it among Turkey’s best cities. Apart from its 9 formal universities, its archaeological and tourist attractions make it one of Turkey’s best cities. The ruins of the Greek city of Agora, where the king’s palace and temples and dwellings were built of rock, dating back to 6000 BC. In terms of buying an apartment in Turkey, Arab and Turkish investors prefer Izmir.
| Izmir Apartment |
1+1 |
$ 49,173 |
| Izmir Sea View Apartment |
4+1 |
$ 62,000 |
| Izmir Luxury Villa |
3+1 |
$ 190,000 |
| Izmir Luxury Villa with SeaView |
6+1 |
$ 165,000 |
Bursa, on the Marmara Sea, has a warm climate and a coastal environment that extends from mountain to plain. Living is easy, there’s plenty of work and housing, and its citizens think it’s the best city in Turkey. Its historic history and tourist attractions make it a great choice for tourism or stability. These and other factors propel Uludag Mountain to the top of the list of best investments in Turkey. It is a hidden jewel in the province of Bursa, and it is predicted to become a new tourist attraction in Turkey. Bursa’s property values are rising, while Karacabey has the highest. They like Mudanya and Nilufar.
| Bursa Residence |
3+1 |
$ 119,000 |
| Bursa With Sea View |
4+1 |
$228,000 |
| Bursa Family Residence |
5+1 |
$ 315,000 |
| Bursa Apartment |
1+1 |
$ 40,000 |
| Bursa Apartment |
2+1 |
$ 57,000 |
Antalya, Turkey’s main tourism hub, shows soaring property values in its resort and holiday towns. Experts suggest the city’s most valued real estate areas include Kibiz and Konyaalti. Top tourist destination Antalya ranked second among the top 10 Turkish cities visited by foreigners last year. In addition to expanding project numbers, Antalya has strong city administration. Antalya is recognized for its beautiful beaches, friendly people, and wonderful cuisine. In the summer, Antalya attracts people from all over. Residents of Antalya enjoy the Mediterranean Sea and tranquility.
| Antalya Apartment |
3+1 |
$ 101,661 |
| Antalya Villa with View |
4+1 |
$151,000 |
| Antalya Villa with View |
5+1 |
$ 202,000 |
This seashore exotic vacation town is ideal for property investors. Bodrum, the Bodrum peninsula, and Mugla offer excellent investment options due to low pricing and great living standards. The most valuable districts are Gumbet and Ortakent. Villas, luxury mansions, and plots abound here. Purchase a house in Bodrum now while prices continue to rise. But first, get an excellent agent. They are both prominent tourist sites with strong rental and financial gains. Both Bodrum international airports support the housing market. Buying a house in Bodrum means enjoying the summer in Turkey.
| Bodrum Villa with Sea view |
3+1 |
$ 996,534 |
| Bodrum Villa |
4+1 |
$515,210 |
|
Bodrum Bay Apartment |
5+1 |
$ 400,000 |
5. Cheap Resources
An investment in a home or apartment in Turkey makes sense because of the country’s recent economic development. However, an increasing number of people are wary of buying property in Turkey due to misinformation. To fool investors, Turkish real estate scammers often highlight the property’s inexpensive price and the possibility of getting Turkish citizenship. There is no cheap real estate in Turkey, and all houses, apartments, and retail prices are determined by the relevant authorities.
In recent times, property inspection reports have been mandatory in Turkey. Prices are set according to the property’s genuine value. While Turkish property prices are cheaper than those in Europe, don’t be tricked by low prices. Unbeknownst to you, a cheap house in Turkey may include hidden taxes or government debts.
How much does the Average House Cost in Turkey?
It’s simple to see why Istanbul is the #1 choice for foreign buyers looking to buy property in Turkey and houses in Istanbul. Despite not being Turkey’s capital, Istanbul is a major hub for trade, business, education, and health.
On the contrary, Istanbul attracts real estate investors who expect big cash gains over the next two decades. Massive European development and megaprojects brought them in. House prices rose 4%, to US$7,130 per square meter.
But, because Istanbul is so big, it also has the Bosphorus, where homes are among the most costly in Turkey. Some, like the Yali homes, sell for 115 million dollars. Many developments sell off-plan, allowing for greater appreciation, while long-term payment options often include 0% interest for five years.
| City | Property price with 100 sqm property ($) |
| Bodrum |
165,900 |
| Istanbul |
180,205 |
| Izmir |
145,700 |
| Bursa |
145,150 |
| Antalya |
167,019 |
Izmir, Turkey’s third-largest city, is a great example of the Turkish real estate market’s diversity, as well. In contrast to Istanbul, house prices increased by an astounding 21% last year. The current average price per square meter is US$355. The city center and surrounding coastal resorts, on the other hand, are in the midst of a new trend.
Many locals have sought to escape Istanbul in recent years, citing traffic congestion. They still want the urban landscape, so they travel to Izmir. Furthermore, Turkish city dwellers are flocking to small Aegean and Mediterranean coastal resorts in Turkey for more private living amid the COVID virus. As a result, demand for villas with private gardens and swimming pools has increased. The wealthy Turks who own summer homes in Izmir’s Foca, Cesme, and Alacati have long been drawn to these places.
Let’s take a look at house prices in Antalya’s city center, from the Aegean to the Mediterranean. For decades, foreigners have flocked to this region, and it is Turkey’s top destination for beach vacation packages. Furthermore, Antalya is the most popular destination in Turkey for foreigners looking for a vacation home rather than an investment.
The city center is divided into five distinct districts. The price per square meter increases with proximity to the sea, but the district’s average is US$290. What distinguishes Antalya is the absence of typical urban vibes. Instead, Konyaalti and Lara beaches, as well as the Kaleici old town and Setur marina, ensure a steady flow of tourists for anyone considering a buy-to-let. Antalya is also a 20-minute drive from the same-name airport, which has a massive year-round flight schedule from a variety of countries, making it simple to get here.
|
City |
Average rental price for a 100 sqm apartment ($) |
| Istanbul |
264 |
|
Izmir |
222 |
| Intellectual |
219 |
| Ankara |
135 |
| Bursa |
135 |
| Antalya |
132 |
How Much is a House in Turkey in US Dollars?
Although housing prices in Turkey have increased due to the economic crisis created by the pandemic, they are more affordable compared to other European cities when compared to dollars. According to the latest international statistics, the price per square meter in Turkey is on average about 892 US dollars, which is approximately 7,500 Turkish liras.
The price of square meters when purchasing this varies according to the location, condition of the house and the advantages it provides. If you want to rent a house, it varies between 40 and 50 liras per square meter in big cities such as Istanbul and Izmir.
Where are The Cheapest Places to Buy a House in Turkey?
The real estate market in Turkey is quite intense in this period as it is in every period. When foreigners want to buy a house in Turkey, it is possible to find a house suitable for their own style from almost every region, but where are the cheapest houses in Turkey?
There is more than one city in Turkey where you can buy a cheap house. For example, there are home options for $45,000 in Altinkum, known as Didim. Besides, Trabzon is a great place to live and the housing prices around it are almost the same as the price I mentioned above.
Where are The Most Expensive Places to Buy a House in Turkey?
When you ask where is the most expensive place to buy real estate, the answer to this question will be Istanbul. Istanbul is the most expensive city in Turkey with its rich history, unique location, and scenery. Istanbul has the highest cost level in Turkey and ranks first in real estate purchase and sale, real estate purchase, beverage, and food, water, gas, and electricity costs in Turkey. As Istanbul is Turkey’s largest cultural and financial center, Turkey’s most important businesses are located in Istanbul. This affects the realty sector as well. In addition, since it has a very dense population, it sells real estate in high amounts every day
How to Buy Property in Turkey?
In Turkey, the property can be purchased in many different regions due to the size of the country. Foreign residents can purchase homes or land on which to build them, while foreign investors can choose from a variety of options based on their intended activity.
Foreigners who wish to buy property in Turkey to build on it must submit a building plan two years before work on it begins. Depending on the building’s intended use, the plan will be submitted to one of Turkey’s ministries for approval. Here are the steps for buying a property in Turkey.
- Conduct research: The Turkish property market grows regularly. Real estate agencies and thousands of houses for sale in Turkey. Each agent will tell you something different. Find out which region in Turkey best meets your needs, budget, and lifestyle.
- Locate a suitable agent: When shopping for a home in Turkey, we suggest reading online reviews and comparing real estate agencies. Agents who have been in business for a long time are likely to be trustworthy. Verify that they comprehend you. Buying an overseas home is usually a lifestyle choice, therefore the agent you work with must understand and appreciate that. Only a knowledgeable and empathetic agent can help you.
- Travel to Turkey: To make an informed decision about buying a home in Turkey, you should first visit the area and sample the local food. This isn’t just another house; it’s a way of life, an ideal location, and idyllic surroundings where you’ll feel at home.
- Go on an inspection trip to Turkey: Your property search will be greatly assisted by a professional inspection trip. Spend four days touring properties, sorting paperwork, and getting acquainted with the local countryside and lifestyle.
- Find all options: We will ensure that you visit as many properties as possible at a wide range of prices to ensure that you are at an affordable price. In our initial phone conversations, e-mails, and possibly face-to-face meetings before your visit, we have scanned many homes and properties in Turkey to see you.
- Negotiate the purchase price and terms: Nothing matters more to us than obtaining you the best bargain on a retirement home in Turkey or an investment property. Our wide networks and contacts enable us to negotiate large reductions for developers and private sellers.
- Reserve and freeze the price of the property: We’ll reserve your dream home, villa, or apartment in Turkey for you so you may continue the purchasing process. Reserving property in Turkey generally costs around US$1,250 and cannot be reimbursed. This is a deposit given to the seller and deducted from the agreed purchase price. If you have reserved the property, however, you decide not to buy it, the reservation deposit is lost.
- Use power of attorney to appoint a lawyer to complete your transaction on your behalf: One of the most straightforward ways to buy a home in Turkey is to give your solicitor in Turkey power of attorney so that they may complete the transaction on your behalf. There is no need to stay in the country when making a purchase, and your purchase will go through without any glitches or problems because of this. You will meet a lawyer during your property inspection in Turkey.
- Final property inspection: The purchase should take approximately four weeks after the contracts have been signed. During this process, your appointed solicitor will perform all necessary checks on the property, including title checks and municipal checks, to ensure that the property is registered free in your name. Military clearance on the property is no longer necessary since March 2019.
- Get the title certificate (TAPU): Your Turkish TAPU is the final step towards completing your purchase in Turkey (or title deed) Upon completion of all the paperwork and the contractual obligations on both sides, your home will then be registered on your behalf and you will receive the title deed (TAPU) for your new home in Turkey.
Which Areas are the Best for Buying Property in Turkey?
Turkey is a fascinating crossroads of East and West, extending from the Anatolian Peninsula to the Balkan Peninsula and being larger than any of those countries combined. 783K km2 land. The best areas to buy property in Turkey are listed below.
- Istanbul: The capital of the Byzantine Empire and the Ottoman Empire, although it is not the capital city anymore, is still Turkey’s busiest metropolis with 14 million inhabitants. The average price of an apartment in Istanbul is US$79,000. Big developments have concentrated heavily on on-site amenities and provide a good rental potential, although the market can be out of stock. Returns are also low compared to investments elsewhere, with an average return of 19 years at 2 to 4%.
- Antalya: This city gives 7% or more depending on the property type. It is a popular town with inexpensive pricing. It is Turkey’s second most popular tourist location, and several management businesses make your life easier. Antalya (and Alanya nearby) attracts numerous visitors, especially Russians, British, and Germans. It has a big ex-pat community and is open all year, unlike many smaller coastal communities. Mild winters and strong transport links make Antalya a year-round destination. Explore Belek for golf and Lara Beach, Konyaalti, and Mahmutlar for seaside relaxation.
- Izmir: Izmir, Turkey’s third-largest city, is surrounded by coastal resorts and forms a big chunk of West Turkey, often known as the Egean. Turks have gained popularity as a tourist and retirement destination as more Turks flee Istanbul, Turkey’s largest city. This includes foreigners who have lived, worked, and bought property in Izmir. But Izmir’s status as the Egean’s jewel has not always been clear.
- Bodrum: Bodrum is one of Turkey’s best coastline locations. With its ancient ruins, castle, beautiful beach, and marina resort, it has traditionally attracted Turkish homeowners and foreign tourists. Bodrum is a peninsula, therefore the water is never far away. It’s also a classic city, with low-rise houses, no tower blocks, and all-white.
What are the Benefits of Buying Property in Turkey?
For many years, the Turkish property market lagged behind other countries in modernization and innovation. This was owing to a lack of domestic mortgages and generations living in the same house. Architects often struggled to find work. Then the new century arrived, and everything changed. Banks increased their mortgage portfolios, and the construction industry began a large housing modernization and upgrade program.
Since 2003, the legal system, architecture, and housing trends have all changed. They were all for the buyer’s benefit and to modernize the Turkish real estate industry. Some of the benefits of buying a house in Turkey are explained below.
- Compared to other countries, housing is cheap: Due to Turkey’s late debut into the international real estate market, its low house prices are luring ex-pats-parts all over the world. Luxury houses are available, but a 2-bedroom furnished flat for US$59,000 is easily found in daily cities like Altinkum on the Aegean coast. Many consumers were able to buy the property without a mortgage or bank credit.
- Perfect for long-term investment: These prices are capable of providing a lucrative return on investment for those who are looking for long-term investment. Experts often recommend the best long-term investment in the real estate market, but buyers in Turkey have added benefits over other countries like Spain or Cyprus, where the prices of property have already peaked. With annual maintenance and maintenance, a well-kept property in Turkey has a massive return on long-term investment potential.
- Low cost of living: These prices are capable of providing a lucrative return on investment for those who are looking for long-term investment. Experts often recommend the best long-term investment in the real estate market, but buyers in Turkey have added benefits over other countries like Spain or Cyprus, where the prices of property have already peaked. With annual maintenance and maintenance, a well-kept property in Turkey has a massive return on long-term investment potential.
- Rental and location: Turkey is the world’s 37th largest country, and foreign buyers are attracted by the mass of cities spread from east to west. The Aegean and Mediterranean coasts are mostly situated apart from Istanbul, which tends to attract workers’ expatriates. The Bodrum peninsula, frequently visited by wealthy international celebrities and Fethiye, are popular places that are particularly scenic. Thanks to its atmosphere, Altinkum has attracted the British, whilst Antalya is more European in its lifestyle approach. However, for the foreign buyers there, Dalaman is less talked about, he feels like being at home.
- Food, culture, and entertainment: Besides the laid-down lifestyle and low living costs, Turkish food, culture, and hospitality have also been cited as key reasons to buy property in Turkey. The kitchen is still very focused on fresh ingredients for delicious homemade food and it is like a Mediterranean diet often referred to as the healthiest food in the world. Turkish culture and hospitality also include foreigners, and every stranger is a friend in the old proverb.
- Acquisition permit for residence in Turkey: The property is the strongest and most important factor in building up the link between the investor and the labor market in Turkey, and commercial property will be a new resource as all investors want multiple income sources, Furthermore, buying and staying a property in Turkey makes the investor closely follow its business and possibilities because it helps to secure a legal residence permit in an important country such as this, per the laws and regulations applicable.
- Citizenship of Turkey: For those looking for dual nationality, the purchase of a property offers a fast way to get a new passport.