Key Factors to Consider When Investing in Real Estate in Turkey

Key Factors to Consider When Investing in Real Estate in Turkey

Turkey has become one of the most popular countries for international real estate investment. Its strategic location, diverse property options, and strong rental yields attract both private investors and institutional buyers. However, to ensure a successful investment, it’s essential to evaluate several key factors before purchasing property in Turkey.

1. Location Matters More Than Ever

The location of your investment is the single most important factor in determining its success. Coastal cities like Antalya, Bodrum, and Alanya offer high rental income through tourism, while cities like Istanbul and Ankara offer long-term growth.

Considerations:

• Proximity to the airport, beach, or city center
• Transportation and infrastructure
• Upcoming urban transformation zones
• Popularity among foreign buyers and expats

2. Define Your Investment Purpose

Before buying, clarify your goal:

• Buy-to-let for short-term or long-term rental income
• Buy-to-hold for capital appreciation
• Citizenship investment over $400,000
• Retirement or second home

Your purpose will determine the right location, property type, and expected return.

3. Understand the Legal Framework

Foreigners can freely buy real estate in Turkey (with some military zone exceptions). However, it’s essential to follow all legal steps:

• Get a Turkish tax number
• Open a local bank account
• Obtain a real estate appraisal report
• Work with a licensed lawyer for contract review
• Register the TAPU (title deed) correctly

Mistakes in the legal process can lead to delays or loss of ownership rights.

4. Check Property Documents Carefully

Always ensure the property:

• Has a clear title deed (free of debts or encumbrances)
• Has a habitation license (iskan) if it’s a residential unit
• Is properly zoned for your intended use (residential, commercial, etc.)
• Matches the building plans approved by the municipality

Request a full due diligence report through your lawyer before transferring funds.

5. Currency and Payment Strategy

Most real estate transactions in Turkey are conducted in Turkish Lira, but many developers and sellers also accept Euro or USD.

Things to consider:

• Use of foreign currency accounts
• Impact of currency exchange rates on investment cost
• Transfer limits and documentation requirements for international buyers

6. Understand Taxation and Ongoing Costs

Apart from the purchase price, property investment comes with ongoing responsibilities:

• Property tax (annual)
• DASK earthquake insurance (mandatory)