Foreign investors prefer investment in Turkey and especially investment in Istanbul city, this blog will be the best guide for investment in Turkey 2022.
In this blog, you will learn more about investment in Turkey and about real estate investment in Turkey more specifically, and what are the advantages that will motivate you to establish or develop your business in Turkey and obtain permanent residence in Turkey and then Turkish citizenship after 3 years.
Turkey is considered one of the most developed economies in the world, and it is distinguished by its geographical location, diversified economy, ease of investment, and huge investment projects compared to many other countries.
The narrow Turkish sea lane between the two continents, including the Dardanelles and the Bosphorus, is one of the world’s major sea lanes. It is the only access point between the Mediterranean and the Black Sea.
Turkey is among the twenty largest economies in the world. Although agriculture still accounts for 30% of jobs in Turkey, the economy depends on the output of the industrial sectors.
In addition, Turkey has oil and natural gas and is also a major distribution point for oil and natural gas in the Middle East and Central Asia.
The coasts of Turkey have a mild Mediterranean climate, with warm, dry summers, and rainy winter.
All these advantages lead investors to choose Turkey as the first option for work and real estate investment.
Read More: Where to buy a house in Istanbul?
Why to invest in Turkey properties?
The reason for choosing investment in Turkey properties from investors as the best place can be explained by the following economic and non-economic reasons:
Turkey strategic location and history
In general, Turkey has a rich history and cultural heritage; the Turkish heritage is very well known and famous, making Turkey attractive to everyone.
Turkey is surrounded by seas on three sides: the Aegean Sea to the west, the Black Sea to the north, and the Mediterranean to the south, facilitating access to about 1.6 billion customers in Europe, Asia, the Middle East and North Africa.
Istanbul is the economic capital and the only city located on two continents Asia and Europe. It is also one of the fastest growing cities in the world, with reasonable prices compared to other major cities.
Turkey is also one of the most stable countries in the region in all fields, as it provides a suitable environment for investments and may grant the investor residence and Turkish citizenship.
Foreigners can enjoy all the rights of Turkish citizens in many aspects of life and for all investment purposes, and this is one of the reasons that attracts foreign investors to invest in Turkey.
Read more: All you need to know about Dolmabahce Palace
Turkey Strong Economy
Turkish economy is considered the 13th largest economy in the world, and the 5th largest economy compared to the European Union (GDP according to purchasing power parity – IMF – WEO).
The economy of Turkey is an institutionalized economy with a total of 144 billion USD in the last decade (CBRT) due to the volume of investment, and it gets 15 billion USD annually in foreign investment in Turkey.
Also, Turkey has a stable economic growth with an average annual growth of GDP (Gross Domestic Product) of 5.6% between 2002 to 2016.
It is expected for the Turkish economy to become one of the fastest growing economics among the OECD members during 2017 and 2020, with an average annual GDP of 5.4%.
Turkey follows Germany and Italy as the world’s third largest exporter of textiles, it is also one of the largest producers of agricultural products.
These products include clothing, chemicals, electronics, transportation equipment, food, building materials, etc.
Low taxes in Turkey
It is one of the main reasons to invest in Turkey, in addition to facilitating incentives for strategic investments, large-scale investment, and local investment.
Real estate investment in Turkey for foreigners
- Property investment in Turkey in a project under construction in a strategic location and then selling it at a higher price.
- Apartments with sea views in Istanbul are the most attractive for investors now when buying a property in Turkey.
- Investment in Turkey in the field of buying lands for sale in Turkey in strategic locations that can be included in the city plans or the possibility of building housing complexes on them later and then selling them at a double price.
- Real estate development which is buying an old property, then improving it, and then selling it at a higher price.
- Buying a ready apartment in a project and then renting it and guaranteeing a fixed monthly return in addition to the advantages of obtaining Turkish citizenship by investing in Turkey.
- Obtaining permanent residence and Turkish citizenship by investing in real estate in by buying a property, and then selling it later.
Best reasons to invest in Istanbul, Turkey
After the renaissance of the real estate market in Turkey, the real estate investment in Turkey, specifically real estate investment in Istanbul, is emerging as the strongest economy as one of the most important areas of investment in the Turkish economy.
It is necessary to talk about the most important factors for the success of real estate investment in Turkey, according to the location, and the other elements of success that support the investment in Turkey.
Each location in Turkey has its own advantages, and every property in Istanbul that is suitable for investment has the features for its success.
In general, investment in Turkey, and specifically real estate investment in Turkey, is considered the top among all other investments.
This is because it is linked to the permanent need for life, which is the need for housing, and the value of the property usually increases, which leads to an increase in its profits over time. Thus, the possibility of losing almost non-existent.
Previous statistics showed that the number of properties sold in Istanbul during last March reached to 4,321 properties.
Turkey was ranked among the best countries to own a property, and Istanbul ranked the ninth among the most visited countries.
In the recent years, Istanbul has surpassed Berlin, Barcelona,
Making real estate investment in Turkey
There are many types of real estate investment in Turkey, including:
Commercial real estate investment in Istanbul
This type of investment is not related to the housing projects, the commercial properties in Istanbul have different forms, such as: commercial offices, shops, industrial real estate, and agricultural land development.
Residential real estate investment in Istanbul
This type is used for the purpose of obtaining Turkish Citizenship, with a profitable annual return.
In general, real estate investment with all its forms, is considered a successful investment, in terms of revenue and profits, but it should be taken under some rules.
Read more: Important tips to buy properties in Turkey
Is buying a property in Turkey a good investment?
These factors can be considered as the most important and successful factors for real estate investment in Turkey:
Choosing the strategic location in Turkey for real estate investment
Choosing the best property in the best location is one of the important factors for a successful real estate investment in Turkey.
Strategic locations in Turkey can double the prices of the properties quickly over time, and this is a real and profitable investment for investors.
Investment in the ready properties in Turkey
It is better to invest in the ready properties because in this way, you will evaluate the property and discover any fault more than the property that you bought through the map.
Read more: A new start with Basaksehir housing projects
Investment within the investor’s financial capacity
Real estate investment is a long-term investment, and the investor should study the financial situation very well.
Invest in many types of real estate investment in Istanbul
The diversity can be in the type of the property, such as investing in an apartment and a store. It can also be in the location of the properties. Thus, this factor increases the profits and is more secure from the fluctuating of the market.
To start best investment in Turkey, you should choose a reliable and honest real estate consultant
This will help you get reliable information and tips for a successful real estate investment, as the real estate consultant is always aware of the market, which helps the investor to choose the best location to invest in Turkey.
A reputable company also can help, as these companies have the ability to provide you with the legal care for purchase contracts, and they are the most familiar with real estate prices, so that they can get the best price for the investor.
Read more: Owning the Turkish Citizenship and Passport
The resident in Turkey is the determinant of the real estate investment market
It is always advised to look at the property in the eyes of the resident not the tourist, and according to him, the chosen property is the one that achieve the purpose of real estate investment.
Exploiting the currency exchange rates in investment in Turkey
It will take time to change real estate prices according to the change of the exchange rate, this factor can guarantee a high return in investing in real estate.
Avoid the fake real estate investment scams in Istanbul
The fake ads can be for a property in Istanbul for sale with a lower price than the other properties in the market.
Do not believe that, because if this is true, the real estate companies and Turkish citizens will reach this opportunity before you!
Advantages of real estate investment in Turkey
Real estate investment in Turkey can be described as distinguished for the following reasons:
- Apartment prices in Turkey are constantly increasing due to foreign demand.
- According to the Knight Frank International Index, Turkey is part of the world’s largest market for real estate price growth.
- According to Ernst & Young, Turkey is the second most attractive investment market.
- Several other indicators nominated Turkish real estate markets to offer the best achievements in the coming years.
- The scarcity of real estate of all kinds compared to the demand in the markets.
Read more: Questions about Turkish citizenship
Why should you invest in a property in Turkey?
- The exchange rate between the lira and other world currencies is high, which means that buyers have more Turkish lira than ever before.
- The wide number of housing projects in certain areas offers reasonable prices per square meter, compared to other countries.
- Many developers focus on modern buildings with the latest architecture designs and advanced home technology, for example, the three-bedroom apartments for sale that integrate smart home technology, and other facilities such as sauna, fitness room and swimming pool.
- Buyers who buy properties worth $250,000 or more and plan to keep them for three years are eligible to apply for Turkish Citizenship.
Read more: Turkey economy ranking for 2022
Pros and cons of investment of a property in Turkey
In the real estate market, there are either properties for sale in Turkey by real estate agents or properties for sale in Turkey by owners.
Turkey is a preferable country for investors because of its geopolitical advantages, as it is located in the middle between Asia and Europe and is very close to Africa.
Because of this, Turkey has a very active business and investment life, people from different backgrounds prefer to invest in Turkey.
Turkey has many different opportunities in many different aspects of life and business, especially for real estate investment.
Cheap properties in Turkey are easily accessible because Turkey has 81 cities and each of them has a different reason to invest.
First, you should decide where to invest and what to invest because there are multiple ways of investment in Turkey, and the following are the positives of real estate investment in Turkey:
Permanent profits from real estate investment in Turkey
Turkey always has an increasing number of investors because it also has a growing number of tourists, which means that there is always a new market.
Whether it is an investment in an apartment in Istanbul or in a factory in Bursa, there will be permanent profit and your decisions must be made about what you want as an investment in the future.
Citizenship by real estate investment in Turkey
Turkey allows foreigners who have invested $250,000 in an immovable facility to obtain Turkish citizenship and the citizenship that is obtained is not only for the investor, but also for his first-degree family members.
Turkey Natural Resources improve real estate investment
Turkey’s natural resources and mild weather attract many tourists annually, and by having an investment close to a natural source, many profits can be achieved.
Cheaper labor in Turkey
Labor in Turkey is cheaper than in Europe and USA. So, if you are a businessman, this will surely increase your income.
Low cost living in Turkey
From fruits and vegetables to clothing, what is needed for life is usually cheaper than European standards.
Cheap prices of investment projects in Turkey
Property prices are calculated in Turkish lira which makes it much cheaper than properties in Europe and the United States.
Now we will explain the negatives of real estate investment in Turkey:
The number of real estate investment projects in Turkey
Although Turkey is a highly preferred country by investors for residency and successful investments, there is not a lot of properties.
High Mortgage in Turkey
Where the mortgage rate in Turkey is higher than European countries.
Real estate investment development in Istanbul
Real estate investment in Turkey or investment in Istanbul in particular is one of the favorite investments for investors, and now we have to know the feasibility of real estate investment:
- Investor exposure to risk: the higher you risk, the higher you get.
- Expectations of the investor to his investment: The more expectations are considered correctly; the results correspond to the expectations.
- Various changes in all areas have a significant impact on the feasibility of real estate investment in Istanbul: such as the effect of inflation in the economy, the demand and change during the investment period, rise or fall in building materials prices, increase or decrease in the importance of the location, and developments that may be subject to the property during the investment period.
Tapu law for Real estate investment in Turkey
The Turkish real estate law has the title deed (TAPU) that assures all your rights, it is an official document stamped with the real estate authorities in the country and issued directly from the title deed department.
The title deed also includes detailed information about the property such as type, area, location, and other details.
Read more: Property tax in Turkey 2022 Full Detail
Best locations for real estate investment in Turkey
In recent years, there have been several different real estate investment opportunities in Turkey for foreigners that can be described as the best opportunities.
Due to the rising costs of housing in recent years, housing prices are expected to rise by up to 50% in the coming years, and this situation represents a significant gain for the investors in the future.
Best cities for investment in Turkey
Regardless of the cities that ranked first and best, the best cities for investment in Turkey may surprise investors.
The investing projects are located in Istanbul, which is the center of Turkey in all fields, the capital Ankara, Izmir, the pearl of the Aegean Sea, Bursa, and Antalya, the capital of the sun and the sea.
Each city has its own distinct and profitable investment areas that attract real estate investors to have an investment project in Turkey.
Turkey is one of the countries that foreign and local investors have followed closely in recent years, especially in the real estate sector.
All the cities of Turkey have different economic advantages in terms of investment, therefore, the payback period for real estate investments varies from one city to another.
However, official land records in Turkey show that four regions are the most popular for real estate purchase project, not only by Turks but also for foreigners.
The reason is that Turkey is very late in promoting and strengthening its real estate market, so prices are still low compared to Western countries.
The following are the most important and best cities in Turkey that attract local and foreign investors and have a high profit rate when it comes to investment in the Turkish real estate:
Real estate investment in Istanbul
The first and best option for investment in Turkey, we always encourage investing in Istanbul, as it is the largest city in Turkey with its many neighborhoods.
Places like Nisantasi have seen an incredible rise in prices as the area has moved more towards luxury living, while in other destinations, Arab, American and European buyers are attracted by the historical places of Istanbul.
Of course, Istanbul Airport is the busiest airport in the country and from Istanbul New Airport to countries around the world thousands of flights fly, there are unlimited options for food, cuisine, shopping, art, and lifestyle.
The last population of Istanbul was more than 15 million people and seems to be expected to rise, as there is a high demand for renovation projects.
Why to invest in Fethiye?
It is located on the Mediterranean coast, Fethiye rose from a small fishing village to a city secured its own rights.
Large numbers of British moved permanently there, probably attracted by property prices as well as a frequent transport network and stunning scenery including blue seas and the Taurus Mountains.
It is a popular holiday destination for tourists, in addition to the city center, Fethiye has those smaller resorts, such as Calis, Hisaronu, Ovacik and Ulu Deniz.
Fethiye is crowded during the summer, and when winter arrives, local businesses such as bars and restaurants close temporarily.
This factor plays a big role for real estate investors who are looking for summer properties, for themselves or for the possibility of renting them.
IS Bodrum a good investment in Turkey?
Bodrum is a diverse destination that attracts investors as well as luxury property buyers interested in villas designed with the latest architectural trends and modern designs.
The peninsula offers a wide range of apartments and villas for sale, all close to shopping facilities, and the nearby airport provides quick and easy access during the summer.
Resorts like Yalikavak and Turgutreis attract central European buyers while Turkbuku is a luxury resort that attracts the rich Turks and wealthy celebrities from major cities.
Bodrum is also the center of the Turkish Riviera, the blue-chip cruise industry that is instantly raising its profile as an international center for business and tourism.
Read more: Best residential compounds in Istanbul
Why to invest in Antalya?
One of the best cities to invest in Turkey, Antalya operates one of the busiest airports in the country and is popular with many nationalities including Germans, Russians, British and Turkish.
The peninsula is divided into smaller resorts, each one has its own unique features.
Real estate investors are particularly interested in the region for the possibility of buying and rent residential properties as the best economic investment.
Real estate investment in Ankara, Izmir and Bursa
These cities are very popular for real estate investment, and this is due to the advantage of obtaining Turkish citizenship with the new regulation in 2018; the demand has increased in different cities of Turkey.
When looking at the regions favored by foreigners for real estate investment, we can note their different features, for example, Golbasi and Cankaya are the most preferred regions in Ankara, Nilufer in Bursa, Foca and Cesme in Izmir.
Frequently Asked Questions about Investment in Turkey
- How much to invest in Turkey to get citizenship?
There are many ways to invest in Turkey and get citizenship:
1- Buying a property worth $400,000 and holding it for 3 years.
2- Establishing a company in Turkey and hiring 50 Turkish employees for a period of 3 years.
3- Opening an account in a Turkish bank and holding an amount of $500,000 for 3 years.
4- Opening a company for a period of 3 years with a capital of $500,000.
- Is buying property in Turkey a good investment?
Buying a property in Turkey is a profitable investment, and you can get benefit from two things:
1- The increasing investment value.
2- The rental income.
- Why to invest in Turkey?
Turkey is a popular hub for investment due to its geopolitical location, luxury properties, low taxes, and the high returns from the investment.
- Where to invest in Turkey?
Istanbul is in the top of the list when thinking about the most favorite destination for investment.
- Is it safe to invest in Turkey?
Turkey is the safest hub for foreigners who are interested in finding excellent investment opportunities due to the privileges that Turkey offer to foreign investors.
- Is it a good time to invest in Turkey?
Turkey's market is still improving despite Turkish lira troubles and other obstacles, and there are many excellent investment opportunities especially in the real estate sector.
- Should I invest in Turkey?
There are many types of investment in Turkey that attract foreigners to take a step and start a new journey that is full of excellent opportunities and high gains.
- How to invest in Turkey?
You can invest in Turkey by buying a property and then renting it, or by establishing a private company in any sector you want.
Read more: Best 10 reasons to buy a property in Turkey
It is now time to start investment in Turkey, contact us now!