Getting an answer to your question: Is real estate investment profitable in Turkey or not? Requires familiarizing yourself with important details about the strength factors of this investment and the Turkish laws that encourage it, as well as gaining insight into relevant real estate statistics and studying many other details.
In this article, we have included a lot of information that piques your interest in our topic of discussion, and we have accompanied our discussion with a lot of accurate statistics and economically analytical information, so that your view and answer to this question posed in the title of our article is insightful and comprehensive.
We wish you a pleasant reading, Skyline Holdings.
To answer this question, let's delve into some important details:
Turkey enjoys a strategic location at the crossroads of Europe, the Middle East, and Central Asia, with a population of approximately 85 million, in addition to millions of foreign residents and refugees, making it a fantastic opportunity for real estate developers and investors by combining the large construction sector with growing commercial and industrial production.
Foreign direct investment inflows into Turkey rose to $13.3 billion, while foreign direct investment in real estate amounted to $5.6 billion, which is 42.2 percent of the total foreign direct investment in 2021. This was a clear proof of the rapid recovery of this sector from the COVID crisis that hit the world's largest economies at the time.
Urban renewal and mega projects dominate the agenda in the foreseeable future, especially in Istanbul. For example, some projects in the city include Marmaray, Yavuz Sultan Selim Bridge, Eurasia Tunnel, and Istanbul Airport, and there are many other promising projects.
These factors, along with others such as political stability, vitality of the real estate sector in Turkey, price difference between Turkey and Europe, and other factors, represent strong pillars for the idea of investing in Turkish real estate.
When you become familiar with Turkish laws regarding foreign investment in real estate, you can answer the question "yes" yourself whether real estate investment in Turkey is profitable, and these laws include:
1. The possibility of obtaining Turkish citizenship through real estate investment or owning a property worth at least $400,000, which is a very low price compared to the gains of obtaining Turkish citizenship.
2. Foreigners can also obtain real estate residence in Turkey after purchasing a property ranging from $50,000 in small states to $75,000 in larger and medium-sized states.
3. Property ownership procedures in Turkey are easy, especially property registration (Tabu).
4. Property taxes in Turkey are very simple, and their value is almost negligible compared to property taxes in the United States, for example.
5. Turkey does not apply the principle of reciprocity regarding property ownership, so any foreigner can own property there even if their home country prohibits Turks from doing so. This exception only applies to five nationalities out of all nationalities worldwide.
6. Turkey applies strict procedures to ensure that foreign buyers are not cheated, especially through the mandatory issuance of the real estate appraisal document in Turkey.
7. In Turkey, properties can be inherited by foreign heirs after the death of the owner.
Let's look at some real estate statistics that we selected for you from several statistical reports issued by the Turkish Statistical Institute:
1. Real estate sales in Turkey increase annually by about 11-18% compared to the previous year. "In 2022, it increased by about 15% compared to 2021."
2. Istanbul and Antalya lead in terms of the most sold properties in Turkey "for both Turkish citizens and foreigners". Therefore, when you arrive at the answer to whether real estate investment in Turkey is profitable, you must have information about the best destinations for investing in Turkish real estate.
3. Turkey plans to rehabilitate more than 7 million homes, which means a real estate revolution in every sense of the word.
4. Foreign real estate sales in Turkey range annually between 40,000 and 60,000 properties throughout the year, which means that between 135 and 140 properties may be sold to foreigners daily. This is a huge number and indicates an incentive for thousands of foreigners to own property in Turkey.
Overall, these statistics indicate good investment opportunities in the Turkish real estate market and reinforce the idea of ownership in Turkey as an encouraging and profitable investment option.
See also: Investment in Turkey for Syrians
The future of real estate investment in Turkey appears bright, with several factors contributing to its potential growth:
1. Ongoing and thoughtful infrastructure development in Turkey.
2. Growth of tourism in Turkey.
3. Increasing foreign interest in the real estate sector.
4. Stability of the real estate market in Turkey.
5. Improvement of political relations between Turkey and many countries worldwide.
6. Economic crises in many countries around the world push businessmen there to search for a safe haven for their money in the Turkish real estate sector, especially Russian, Ukrainian, and Iranian nationalities.
Since we have talked about the nationalities that own properties in Turkey, it is important to move to the next paragraph, which explains in great detail and with numbers on this topic, which will strengthen our understanding of the profitability of the question of whether real estate investment in Turkey is profitable or not.
Many foreign nationalities, through thousands of investors, have realized since 2012 until today that the answer to the question: Is real estate investment in Turkey profitable, is "yes". Therefore, they have been coming to own properties there. Below, we will provide detailed information about these nationalities.
The cultural and social proximity between Turkey and Arab countries is an important factor in attracting many Arab nationals to own properties in Turkey and make them think whether real estate investment in Turkey is profitable or not. Among them are the following Arab nationalities:
1. Iraq
2. Kuwait
3. Saudi Arabia
4. Egypt
5. Jordan
6. Palestine
7. Yemen
There are also many non-Arab countries that have been attracted in recent years to buying properties in Turkey, including:
1. Russia
2. Iran
3. Ukraine
4. Kazakhstan
5. Germany
6. United States
7. China
8. Afghanistan
9. United Kingdom
10. Pakistan
Statistics of the Most Common Nationalities Purchasing Real Estate in Turkey 2023
According to monthly reports issued by the Turkish Statistical Institute, more than 25,000 foreigners bought properties in Turkey in the first nine months of 2023, with the following details:
Nationality Number of Property Buyers in 2023
Other nationalities +4500
Nationality | Number of properties |
Russian | 7961 |
Iranian | 3271 |
Iraqi | 1408 |
Ukrainian | 1219 |
Kazakhstani | 1001 |
German | 890 |
Kuwaiti | 614 |
Azerbaijani | 544 |
Saudi | 500 |
American | 486 |
Chinese | 472 |
Afghan | 450 |
British | 443 |
Pakistani | 310 |
Egyptian | 309 |
Jordanian | 281 |
Palestinian | 243 |
Swedish | 237 |
Yemeni | 226 |
Other nationalities | +4500 |
This number is likely to increase by the end of 2023, reaching around 42,000 to 48,000, or even more. In general, Skyline Holdings will monitor the official statistics released and publish them on our website, God willing, to ensure your confidence in our positive answer regarding whether real estate investment in Turkey is profitable or not.
Whether real estate investment in Turkey is profitable can be determined by monitoring real estate statistics, urban development in the city, cultural diversity, stability factors, job opportunities, and other factors.
Based on the above, the best cities for ownership in Turkey are as follows:
1. Istanbul
2. Antalya
3. Ankara
4. Bursa
5. Yalova
6. Izmir
7. Trabzon
8. Sakarya
9. Kocaeli
These nine cities account for 92% of total real estate sales to foreigners in Turkey on a monthly basis. This explains our selection of them as the most profitable options because they are the most attractive to foreign investors, confirming their positive response to the question: Is real estate investment in Turkey profitable?
Read also: Investment in Turkey for Jordanians
There are several ideas that make you confident when asking whether real estate investment in Turkey is profitable, and your answer will be yes if you follow safe methods and invest according to the appropriate ideas:
1. Consider buying properties in Turkey and renting them out to achieve profitable financial returns from monthly and annual rental yields.
2. Investing in leasing commercial premises or offices, as they achieve relatively higher profits compared to residential apartment returns.
3. Buying properties and reselling them, benefiting from the annual increase in property prices in Turkey to achieve a profit estimated at between 50-60% above the property price if sold after two years or more of ownership.
4. Investing in purchasing properties under construction and selling them after completion, with a profit margin of between 25-40% within a year or two at most.
5. Hotel and tourist apartments in Istanbul and Antalya, in particular, and in all Turkish cities in general, are a good option for those interested in real estate ownership and benefiting from profitable tourist seasons.
6. One of the things that make you trust that the answer to the question "Is real estate investment in Turkey profitable?" is "yes, it is profitable" is the idea of investing in land, where investment can be made in two types: suitable for construction and suitable for agriculture. In both cases, good profitable returns can be achieved within a short period.
7. The most important idea that foreign real estate investors in Turkey should not overlook is diversifying investment resources, not relying on one type of real estate investment. Diversification can be achieved by purchasing different types of properties or properties in different regions of Turkey, both of which provide a safe and encouraging opportunity for profit.
Contact Skyline Holdings to Start Your Real Estate Investment
To assist you in your upcoming real estate investment plan in Turkish properties, you can contact Skyline Real Estate, one of Skyline Holdings' companies specializing in the real estate sector.
You can also contact Skyline East Home, which specializes in real estate services, especially property management services.
You can also contact Skyline Architecture for architectural design services for your properties, or for property furnishing and interior design services.
We are always ready and prepared to provide our services to you, to help you with all the details that matter to you, and we devote all our services to your satisfaction and achieving profitable returns.
We have thus completed a comprehensive and comprehensive article on answering the question: Is real estate investment in Turkey profitable or not? After all that we have mentioned, you can confidently and assuredly answer this question.
Statistical reports from the Turkish Statistical Institute were used in completing this article.
