Real estate in Turkey: where do foreigners buy housing and why do they choose particular cities?
The number of real estate purchase and sale transactions in Turkey among foreigners is growing every year. Foreign citizens are attracted by the steadily growing economy and developed infrastructure of the country, affordable healthcare, and a warm climate. A great advantage of buying property in Turkish is that it makes you eligible for a residence permit.
According to customer reviews, the purchase procedure takes up to 5 working days. The cadastre office of the city municipality issues a certificate of ownership immediately.
Where to buy real estate in Turkey?
People usually buy residential property on the sea coast in order to have an opportunity to come there and relax at any time. Since January 2017, it is difficult to rent housing for only a few days since natural persons are prohibited to carry out short-term rental services or even licence it. The demand for private Turkish apartments has increased. The most popular resort cities are Alanya, Antalya, Kemer, Yalova, Bodrum, Fethiye.
Houses located on the seaside are an excellent investment. During the season, the rent generates a profit equal to 10% of the apartment cost. Most foreigners invest in Comfort Class apartments, others — in penthouses on the first line. Apartments in hotel-like complexes are the cheapest.
People who are planning to move to Turkey choose Istanbul, Ankara, and Izmir for permanent residence. It is easy to find high-paying jobs, renowned universities and good property prices in Turkey, particularly in these cities.
What are the features of Turkish houses, villas?
Most of the houses on sale were constructed less than 10 years ago. Since 2017, the country has banned the construction of houses with apartment area of up to 28 square meters. Small apartments can now only be found on the secondary market. Since the same year, not a single studio has been built without an isolated bedroom.
Even in new buildings with cheap apartments (35 thousand euros), there is a single infrastructure: a swimming pool, a hammam, a gym. In Turkey, such services are a must rather than a luxury.
Few cities have central heating. In the rest of the country, rooms are heated with air conditioners, and a «warm floor» system in winter.
Many of those who are interested in Turkish real estate are not used to the local designation of the number of rooms. The formula consists of the number of bedrooms plus the number of living rooms:
- one-room studio apartments (1+0);
- two-room apartments (1+1);
- spacious family rooms (2+1);
- budget and luxury villas (3+2, 4+2).
More than 95% of apartments in multi-apartment buildings have either a balcony or a terrace. A significant amount of the three-bedroom apartments has a duplex layout (two levels). Duplexes occupy the first and the last floors of new buildings. High two-level penthouses are kitted out with a barbecue area (a terrace and a barbecue oven). The lower duplexes have a separate exit leading to a small private garden.
How to pay taxes and obtain permanent residence registration in Turkey?
The tax rate for the purchase of Turkish apartments is 3-4 % of the house worth. Usually, the seller and the buyer pay this tax in equal shares. When purchasing the first home in the country, foreign citizens are exempt from paying VAT.
You can pay for the transaction in cash. A buyer transfers money to an agency or a seller and receives a payment receipt for the property. If a buyer has no assets, they can take out a mortgage.
Homeowners automatically obtain a residence permit valid for 1 year. Since 2017, they can obtain citizenship immediately. To get permanent residence, you have to buy a property in Turkey which costs at least $1 million and keep it for three years.