Buying Property in Turkey and Turkey Property for Sale

Turkey property for sale:

Turkey property market overview

With buyers still looking to avoid the more expensive eurozone areas, Turkey’s popularity is continuing to burgeon. Poised at the junction between Europe and Asia (Istanbul is the only city in the world built on two continents), this democratic country has a wealth of history and culture to be devoured, as well as its famed cuisine and fascinating geographical distinctions: there aren’t many places where you can ski and sunbathe in the same day! As a holiday destination, Turkey has a reputation of being value-for-money, bringing in the crowds from far and away, which has helped to boost the country’s popularity as a property investment hotspot. And with relatively cheap prices, demand for Turkish homes is on the up, among both investors and lifestyle buyers.

The process for buying property in Turkey

The Turkish Statistical Institute cites that there are around 73,000 overseas nationals registered. Many of these inhabitants will have benefitted from recent capital growth, with prices appreciating by 7.3% last year. But what process did they have to go through to actually purchase the property – and hopefully make a sound investment?

Always carry out due diligence before buying a property and appoint a translator when dealing with negotiations and documentation
Check the ‘Tapu’ (title deeds) to ensure the property belongs to the owner, check it complies with building standards and that there are no outstanding charges against the property.
Under the law of the country a home seller does not give up the title deed, the new buyer just gets a fresh one. This makes it theoretically possible for a home to be sold more than once, so buyers should look at the official register rather than just the deed.
Sign a preliminary contract of purchase, which commits you to the sale and pay a deposit of around 30%. The title deed transfer will take place at the land registry office. As the legal owner, your name and details will now be on the title deed, a copy of which will be given to you. Additional copies of the title deed can be ordered from the registry office for a small fee. If you are buying off plan, you should receive a habitation certificate at the end of the building work.
If you are buying off plan, you should receive a ‘Iskan’ (habitation certificate) at the end of the building work. This document is required for all new buildings and shows that the construction of the building has been completed in line with the planning permission given by the local council (Belediye). This document is very important as without out it you can neither live in the property in question nor subscribe to the utility companies.
For purchase costs you should budget on six to seven per cent of the purchase price for fees. You will need to pay a deposit, legal fees, taxes and agent’s commission. Stamp duty is three per cent and split between the buyer and the seller.
It is important to register with the local tax office and open a local bank account.
Once you have purchased a property you need to register with the local tax office who will issue you with a tax identification number.

Buying Property in Turkey - Fees & Taxes

Breakdown of approximate costs of buying property in Turkey costing £150,000

Purchase (transfer) tax at 1.5% (paid by both the buyer and seller) £4,500
Notary fees £140
Land registry fees £150
Municipality fees (can vary) £300
Military clearance £500
DASK (annual compulsory earthquake insurance) £50
Total £5,640
VAT is charged at a rate of 1% on the sale of real estate (less than 150m² residential), and 18% on the sale of real estate (residential building over 150m², land).

Turkey property hotspots

Turkey is tipped to see tourist numbers reach 30 million this year, which is good news for holiday rentals investors as demand for these should continue to outstrip supply. Turkey's coasts offer a good prospect for investors and the most popular areas tend to be dotted along the Aegean and Mediterranean coastlines. The development of various marinas and the cruise industry is helping economic growth in said locations, which is pushing up demand for homes in the area and increasing rental potential.

Alanya Property:

Standards of property in Alanya are constantly improving in this cosmopolitan town, and with a new airport near completion, and an enchanting coastline to boast, developers are moving in to try and replicate the success of Spain’s property boom.

Belek Property and Side Property:

Both these areas are popular with golfers. There are around 15 professional standard, 18-hole courses in Belek, with plans to build another 15 over the next decade. Just 20 minutes from Antalya international airport, this year-round destination offers a range of attractive beaches, museums and bazaars. Property is slightly cheaper in Side than Belek, yet it is still close enough to the golf facilities to offer a good rental return for investors.

Bodrum Property:

With infrastructural improvements continuing, excellent shopping, restaurants and nightlife, Bodrum draws in 70% of all Turkey’s tourism. However there is a quieter side of life down on the peninsula. For example the pretty fishing village of Gumusluk is only a £10 taxi ride from the vibrancy of Bodrum, giving potential purchasers the best of both worlds.

Dalaman Property and Fethiye Property:

These two resorts are hugely popular with the Brits, and with accessible prices, a good call for investors. A one-bedroom sea view apartment here would average around £63,000.

Dalyan Property:

This town benefits from sunny weather, wildlife attractions that include turtles nesting on the beach and good accessibility due to being near Dalaman's international airport.

Didim Property and Altinkum Property:

For those who really want to tighten the purse strings, apartments are available here for just £25,000, enabling most budgets to go a long way. Nearest airport is Bodrum, an hour and a half drive.

Gocek Property and Kas Property:

Also areas on the up. The latter has a large marina featuring upmarket shops, restaurants, a planned golf course and views across the southern Aegean.

Istanbul Property:

Prices here reportedly jumped annually by up to 40% between 2002 and 2005, after a law was introduced permitting foreign nationals to purchase property in their own name. Tipped to be crowned European Capital of Culture for 2010, long-term lets are particularly popular, and there are signs that the property prices will continue to appreciate in the city.

Key Facts
Population: 72 million (approx). Of this number 80% are Turks and the remaining 20% are Kurds.
Capital: Ankara
Languages: Turkish. Various other minority languages are spoken but not officially recognised, whilst English and German are spoken in many of the business districts.
Area (km2): 781,000
Currency: Turkish Lira (TRY)
Exchange rate: £1 = 2.4 TL
Dialling Code: +90
Emergency services: 112
Embassy in UK: www.turkey.embassyhomepage.com

Top Tips

Always seek independent legal and financial advice specific to Turkey
Ensure the developer has the correct planning permission papers to give you full ownership rights
Check the distance to the nearest international airport, and that flights from the UK offer a year-round service
Tales of corruption and rogue house builders are not uncommon, so approach any purchase with caution
Ensure your passport has over three months validity before entering Turkey
And when stress creeps up on you...make time to try a Turkish bath (Hammam) it is a never to be forgotten experience. Bath houses have existed since medieval times and are an integral part of the culture.

Travel
Turkey’s busiest international airport is Istanbul’s Ataturk International Airport. Throughout the year, and particularly during the busy summer months, you can also catch international flights to/from Antalya, Bodrum, Dalaman, and the rapidly expanding Izmir airport. However, from Turkey’s other airports, including Ankara; you usually have to pass through Istanbul. There are excellent bus connections to and from all airports and city terminals.
The national carrier is Turkish Airlines, which has direct flights from Istanbul to most capital cities around the world. British Airways, Turkish Airlines and EasyJet offer direct flights between London and Turkey, whilst other airlines may offer non-direct services. Prices average at about £200 return fare. Charter flights to Turkey go from Birmingham, Bristol, Gatwick, London, Manchester, Nottingham and Newcastle.
For those more intrepid explorers, once in Turkey, don’t forget you can travel easily by train or bus around the country, or to various other destinations in Eastern Europe or the Middle East.

Health
Healthcare in Turkey has improved, but has still not reached the expected quality, especially in most of the state hospitals. Private hospitals have a far higher (international) quality of physicians and medical equipment. Ensure you take out good health insurance, as most private hospitals have contracts with various insurance companies. The main centres are well served with hospitals some of which have direct agreements with BUPA.

Some information contained herein may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and/or financial advise from a qualified professional.