Why Turkey?

Owning real estate abroad is considered not only a profitable investment but also a prestigious right. The main motives that drive people when gaining foreign square meters are, first, the desire to keep their money in a stable currency, and second, to have a permanent paradise, so that there is somewhere to escape from the bustle of the city. And, of course, low real estate prices, climate (long beach season), environmental conditions, high-quality construction and convenient flights.

Acquisition of real estate abroad is a very important decision and should be taken seriously!

When clients come to our office with a desire to invest their money correctly, why do we recommend real estate in Turkey:

• Taxation of real estate transactions is two times lower than in European countries. Tax on the purchase of real estate is 4% of the cadastral value of the object.
• The cost of maintaining Turkish housing is minimal and lower than in Ukraine and Russia. The average amount is 400 euros per year.
• The standard of living in Turkey is higher than in the CIS countries, and living expenses are very low.
  In the past few years, the statistical office has been setting new records - an increase in real estate prices by 10-15% per year.
• Net rental income per year averages 7-8%.
• The Law on Mortgage Lending makes it possible to issue loans to non-residents of the country, which facilitates the realization of the dream of a house by the sea, and also increases the level of demand for apartments. Mortgage lending is possible for one to 15 years at a rate of 7-8% per annum in dollars or euros, and about 18% in lira. The registration procedure takes 2 ... 5 days.
• Developers offer 0% installment for the period of construction of the object, on average it is 2-3 years.
• Projects at the Off-Plan stage, at the "pencil" stage, attract with competitively low prices and provide an opportunity to receive a guaranteed income on completion of construction from 25% to 80%.
• The interest of foreign investors in Turkish real estate is growing steadily: in November 2021, home sales to foreigners increased by 48.4% year-on-year to an all-time high, according to the Turkish Statistical Institute. This happened because the depreciation of the lira against the dollar made buying local real estate more profitable for those who pay in US currency.
• A varied selection of apartments and houses at affordable prices compared to other Mediterranean countries.
  All real estate that is sold in Turkey, together with a share of the land on which it is located, becomes the personal property of the buyer. It is also inherited.
  Turkey is a very affordable country in terms of flights and visa-free regime for citizens of Russia, Ukraine and Kazakhstan.
• The acquisition of real estate in any price category makes it possible to immediately get a residence permit for the whole family, and after 5 years and citizenship.
  After lowering the investment threshold for obtaining Turkish citizenship, the country's passport can be got in exchange for investments in local real estate in the amount of $250,000, instead of the previously required $1 million.
  When Turkey joins the European Union, real estate prices will rise sharply.

Economic forces:

• Turkey is the center of world culture and trade, as well as the fastest growing economy in Europe. In the last 10 years alone, Turkey has outstripped many emerging economies in terms of development dynamics.
• External trade turnover as of 2021 is 268.2 billion dollars, an increase from the previous year by 16.4%.
  Export volume - in 2021, Turkey reached a record high of $201 billion.
• $2 trillion gross domestic product - Turkey's 2021 GDP with an annual growth of 7% (a good indicator for the economy of developing countries) is $720 billion.
• The fall of the lira attracted foreign buyers and increased sales to foreigners by 17% in 2018, by 14.7% in 2019, by 10.3% in 2020 (decrease because of the pandemic), by 48.4% more in 2021 year - a record for home sales to foreigners.
  Adheres to a liberal policy regarding many foreign investments.
• According to the FDI Confidence Index, in 2017 Turkey ranks 7th among the most attractive destinations for foreign direct investment (FDI) in the world. Foreign investors invested just over $12 billion in the Turkish economy in 2018, more than $13 billion in 2019, $7.733 billion in 2020 (against the background of the pandemic), $256 million in 2021. The created economy over the past 14 years received $180 billion as FDI (foreign direct investment).
  Highly developed infrastructure, including transport links and communications.
• Developed tourism sector because of seaside resorts and a variety of attractions. In 2018, 35 million foreign tourists visited Turkey, 51.8 million foreign tourists visited Turkey in 2019, 12.7 million foreign tourists visited Turkey in 2020 - for Russian tourists, Turkey in 2020 remained the most popular foreign holiday destination. From January to October 2021, over 21 million foreign tourists visited Turkey.
• Istanbul and Antalya have become the center of arrival for most of the visitors, being the largest cities in the country and one of the major tourist destinations. Most tourists visited the Antalya region - 79% of the total number of foreigners who rested in Turkey. Another 14% of foreigners this year visited Istanbul and 6.6% Mugla province (resorts of the Aegean coast).
  The number of companies involved in the Turkish construction sector increased by 43.2% between 2011 and 2020.
• The International Monetary Fund (IMF) has compiled a ranking of countries where the cost of housing has risen - or fallen - the most. Of the 58 taking part countries, Turkey is in second place in terms of growth in residential real estate prices +14.9%. In the first place is Luxembourg (+17.1%); in third place is New Zealand (13%). Let us clarify the results were summed up, considering the data received for 2020, and in 2021, the increase will obviously be even higher. With all the currency vicissitudes, construction prices are rising!
  The average cost of housing purchased by foreigners in Turkey has already come close to $200,000.
• A new era begins in the construction industry. Market players are already seeing activity outside the standard "triangle": residential real estate, offices and shopping centers, the attendance of which is rapidly recovering. Opportunities are also expanding: now you do not need to be a major investor to enter a profitable project on the market.
• According to a study conducted by the Association of Foreign Real Estate Investors (AFIRE), Turkey is ranked as the 7th most attractive real estate investment destination in the world in 2021 after the UAE, Germany, France, USA, Canada and Australia because of its prime location and dynamic economy.
  6th largest economy in Europe with a GDP of USD 754 billion in 2021; 20th in terms of nominal GDP in the world, Turkey's neighbors in the ranking are Saudi Arabia and Switzerland.
• 11th in the world in terms of gross domestic product, calculated at purchasing power parity.
  In 2021, the gross domestic product per capita is $14,999.
• Good conditions for investment. Since 2006, Turkey has adopted several laws aimed specifically at attracting foreign investment in the construction industry.
• Istanbul, Ankara and the regions on the Mediterranean coast (the major tourist destinations) are much more economically developed than the east of the country.
• Since 2012, investors from 70 countries, including Ukraine, the Russian Federation, and Kazakhstan, have been able to buy housing in Turkey, which has led to a sharp increase in demand with an absolutely calm economy.
• Constant reduction of the budget deficit and public debt since 2002. Turkey seeks to pay off $208 billion in foreign debt.
• From 2002 to 2019, GDP almost quadrupled, reaching $909 billion in 2019 from $231 billion in 2002. GDP per capita in 2019 is $11,602.
• Turkey is in 13th place in the world in terms of economic growth. Turkey's economic growth was 4.5% in 2018 and 0.9% in 2019.

By 2023, when the centenary of the Republic of Turkey will take place, the authorities intend to do everything so that the country enters the top ten countries with the leading economy in the world.

The tourism industry has set a goal of increasing annual tourist arrivals to 50 million by 2023. Profitability is planned to be increased to 50 billion rubles.

Turkey continues to lead the world in rising house prices.

The international consulting company Knight Frank has updated the residential property price index for the second quarter of 2021. According to the study, prices increased by an average of 9.2% in 55 countries over the year (+4.7% a year earlier). Turkey (+29.2%) becomes the absolute leader for the sixth quarter in a row. New Zealand (+25.9%) took the second place, the USA and Slovakia (+18.6%) shared the third place. Russia has moved from 14th (+8.1%) to tenth place in the ranking over the year, with price dynamics of +14.4%.

Turkey leads the Global House Price Index for the sixth consecutive quarter, with house prices up 29.2% (+27.5% a year earlier). The dynamics in the country slow down again (in the last quarter, it reached 32.0%).

*Global House Price Index (GHPI) allows you to monitor and compare the price dynamics of housing markets in local currency in 55 countries. The index is updated based on official state statistics and the Central Bank. Considers the average price of 1 sq. m of secondary housing for all segments.

Draw your attention to! All data is current as of January 2022. If there are any changes in the future, we will definitely inform you about it.