The real estate market in Turkey is growing rapidly. Just in the first two weeks of June 2020 alone, mortgaged house sales recorded a 23.9% increase at 18,483 – a 36.3% share of all sales over the same period. By the end of the month, Home sales were covering 50% in Turkey after the new mortgage loan packages were introduced with the lowest interest rates the country has ever seen. The sales are expected to rise significantly beyond the month, thanks to these federal mortgage loan packages. The real estate sector will likely make as many sales by the next season as in a year if banks continue to offer low-interest mortgage loans.
With their urbanization projects, the Turkish government had a minor hiccup on recovery but these days renovation in these areas is going on and new and modern places to live are building up. With the help of the housing loans also help the people to buy their dream houses and give a chance to buy their own houses.
The mortgage loan packages introduced by the federal banks in Turkey at historically low-interest rates have brought along a record surge in housing loans, which saw an increase of around nearly $613 million. Brand-new homes will have up to 15 years of payment on mortgages, with interest rates as low as 0.64% and can have a no-payment period of 1 year. Meanwhile, the low equity-down payment rate starting at 10% will be applied for the use of financing. Turkey’s three largest federal lenders revealed four new credit packages in June to energize the transition to post-coronavirus normality and revive the economy.
There is an obvious increase in housing production in Turkey. Although there may be economic problems with the Turkish Lira, we have to The Turkish economy is growing silently. The real estate market's rise is the result of both native and foreign investor’s investments. The support of the state help the people have their possession and help them have their dream houses.
The construction sector is the locomotive of the Turkish economy. The more projects are supported, the bigger the contribution to the economy of the country. This will allow more taxes to be reflected in the prices of the discounted materials last year, which means that the real estate prices will be going down. No one should miss this opportunity. Along with the incentives, the figures in the residential sales will be rising.
Turkey is the youngest country of Europe with a median age of 30, where they all are working to own a property. Domestic demand will continue to rise in 2021 since these young people also want to live in good houses. There are numerous affordable housing projects in western parts of Istanbul such as Beylikdüzü, Esenyurt, Bahçeşehir, or Büyükçekmece and these neighborhoods are closer to the main transportation hubs. The values of properties in these areas are expected to grow higher because there won’t be any shortage of demand soon.
The real estate market in Turkey is expected to grow more in 2020 even so there are fewer permits to construction in comparison to previous years because demand keeps on growing both to luxury and affordable properties.
WHY ISTANBUL FOR REAL ESTATE AND LIVING?
Be it for a short vacation, or staying in your forever home, you will always feel welcomed by the Turkish community. You may not share a common language or apparel. You may have no idea how to purchase groceries or order food. Yet, once your neighbors take a notice on your troubles, your empty fridge will slowly fill up with pots and plates of local foods. Although “getting rid of strangers” culture is everywhere around the world, Turks are the ones who stop and listen and see if they can help you in any way. Since they have always been at the center of trading and migration routes, the people here have influenced and borrowed from other cultures, mimics, food, as well as lifestyles of everyone who came for a visit and stay. That is why you will always feel welcomed in your community no matter where you came from.
While foreigners are guaranteed a Turkish citizenship through a $250.000 real estate purchase, the amendment that allows them to gain citizenship also supports multiple property purchases as long as their collective -after taxes- a sum of cost is more than 250 thousand USD before taxes. These tax returns are filed every four years, and the rates range between %0.1-0.3. Even though the payment is made in USD, the price will be written in Turkish Lira on the title deed. The exchange rate will be according to the current day’s effective selling rate of the official Turkish Central Bank. You can read a more detailed explanation of how to gain Turkish Citizenship on our website or contact us for more information. Real estate investments are significantly influenced by the state economy and political stability. Turkey, as the connection point of two different continents, is the best candidate for real estate investment in the region.
Istanbul, with its 16 million population is almost its own country in the 80 million population of Turkey. Through the roots on two different continents, Istanbul is home to many districts that are not just historically and culturally, but naturally beautiful districts.
Dating back to the ancient world, Istanbul was the capital of the Roman Empire as well as the Byzantine Empire. Even though it was also the capital of the Ottoman Empire, after the Republic of Turkey was established, the capital moved to Ankara. Istanbul is a unique city known for being home to many historic landscapes and being located in both Europe and Asia continents.
The city of Istanbul is one of the rare cities situated between two continents, consists of 9 islands, 39 districts, 647 kilometers coastline length, with a population of 15 million. The city is famous for its varied buildings. In fact, it has 1792 historical places, 28 palaces, 91 museums, 93 Turkish baths, 712 hotels, 28.650 restaurants, 49 universities, 36 libraries, 227 theatre halls, and 882 movie theaters. It also provides a developed transport system with 2 airports, 28 ships, 50 scaffolding and 233 kilometers of rail transport. Istanbul is an international attraction for tourists. In 2018, 13.433.101 tourists visited this beautiful and historical city from all across the world.
Buying a property is a challenging process on its own let alone buying a property in a different country. It requires thorough research about the laws and regulations as well as the property values. If you have decided to buy a property in Turkey, or any other country for that matter, this guide will provide you with all the tips that you need to know before actually buying the property. If you successfully go through all these steps and consider each of them important, you should not run into any problems and the process should be done easily in a short time.
The type of property you want is closely related to your initial vision. If you are looking for a summer house, for example, the property type will change accordingly. However, this is not the only criteria when choosing a property type. How many members you have in your family, your job, and even your pets can change the property type you need. If you have a big family, you can either look for a villa or a big apartment with enough bedrooms. If you have dogs or small kids, you might want to get a house that has a garden for them to enjoy, or a large apartment closer to amenities. If you are going to work in Istanbul, you might want to choose an apartment or house that is close to transportation and the property type may be less important for you in that case. Therefore, make sure you choose the right type of property for your circumstances. You can choose more than one property type if you have different options in mind, however, do not forget that too many options can also be confusing at times. In case of having multiple property type options, know which one is suitable for which purpose.
The process of buying a property is not easy and it comes with all sorts of problems. A mistake made in any of these steps could lead to much bigger problems in the long run. Another problem may occur due to the property itself. It may sound good and you may not see any problems with the property itself, however, there could be things the owner is hiding from you that you will only realize after buying the property. Therefore, be careful with each step you take and always be suspicious of the offers that are too good to be true. It is better to stay on the safe side. Try not to go for a bad agency just because it is cheap, or do not go with a translator who is not a professional in the field due to the prices. Make sure to choose trustworthy agents and professional lawyers and translators who will make everything much easier for you. As Istanbul Real Estate, we have a portfolio of decades of helping foreigners on their process to buy real estate in Istanbul.