7 Steps to buy a property in Turkey
Since 2012, when the Turkish government allow foreigners to own real estate in Turkey, the Turkish real estate market has been booming, especially in the last two years, where the Turkish citizenship has been given to foreigners in exchange for the purchase of a property or a group of properties worth $ 250,000 and hold it for 3 years before selling it back again if they want .
The steps to buying a property in Turkey in brief:
1- Choosing and comparing real estate consultants
2- Communication with consultants
3- Find the suitable offer
4- Negotiations and choosing the payment plan
5- Complete the process and after-sales services
6- Applying for Turkish citizenship
7- Real estate management
Before talking about each of the above steps, we will mention facts about the Turkish real estate market, mostly unknown to a good number of people interested in buying a property in Turkey:
Facts about the Turkish real estate market
1- The volume of foreign demand from the total local market
Many clients think that the real estate market in Turkey in general and in Istanbul in particular is a market that covered by foreigners with high percentage , therefore unrealistic offers are presented by real estate developers to attract foreigners only, and this is not true because the share of foreigners in the Turkish real estate market does not exceed 3% According to the statistics of March 2020.
In the first chart, we find the number of total real estate units sold in Turkey on a monthly basis for the years 2018-2020 according to the Land Registry and Real Estate Survey.
While in the second chart, we find the number of real estate units sold to foreigners on a monthly basis for the years 2018-2020, which represents a very small percentage
Thus, the basis when building residential or commercial complexes is targeting the local market and pricing is done for the local market. Certainly, Turkish citizens receive facilities in payment plans submitted by Turkish banks that foreigners do not receive themselves, because the foreigner is supposed to obtain a loan from his country belonging to it, not from Turkish banks. In any case, after the facilities provided by the Turkish government to facilitate obtaining Turkish citizenship for foreigners, it became possible for the foreign investor to take advantage of Turkish bank loans after obtaining citizenship through his first investment.
In order to know the most foreign nationalities buying real estate in Turkey during the month of March 2020, we share with you the chart below presented by the Land Registry and Real Estate Survey.
2- Distorting the image of the Turkish real estate market
Whether it is for political, economic, or even religious reasons, many countries around the world seek to reduce the importance of Turkey in general and real estate investment at Turkey in particular, and it is no wonder that because the real estate sector is one of the sectors that support the Turkish economy, it is natural that this sector be specifically fought .In addition, of course, to the distinguished tourism sector in Turkey and the medical sector, which will not expand here to go into its details and the extent of the development of medical devices in Turkey and treatment at prices that do not even reach half the cost compared to all of Europe and North America.
The strategic location of Turkey in general and Istanbul in particular, in addition to the ideal climate, advanced technology and advanced infrastructure make Istanbul a distinct city worldwide, as it combines the advantages of advanced cities on the one hand and the appropriate prices found in the late cities on the other hand.
If you compare real estate prices in Istanbul with modern cities like New York, London, Tokyo and Paris, you will immediately find the obvious difference, not only in prices but also in taxes.
In terms of the environment and society available, Istanbul is characterized in particular by a foster environment for foreigners of various nationalities and therefore it respects their beliefs and rituals, as we can easily find kitchens in Istanbul from all countries of the world in addition to fashion, books, schools and educational institutes.
Turkey is a secular country that respects all religions and this is what made it a fertile environment for people from different nationalities and religious beliefs to come in. This in itself is a feature that makes it a target for distortion by countries that do not respect the beliefs and opinions of others.
3- Choosing the right city
We always refer to our customers to the importance of living and investment in Istanbul specifically for the following reasons:
A- The population of Istanbul exceeds 20 million and reaches 25 million with foreign tourists and therefore it is a city equal as population size of a whole country and the presence of foreigners in it is familiar to its population
B- The vast majority of those who want to buy real estate in Turkey go to Istanbul, and therefore we find in Istanbul the diversity that suits all these nationalities and cultures, from educational and medical centers, kitchens and fashion.
C- Istanbul includes the Bosphorus Strait, istanbul is bordered on the south by the Sea of Marmara, on the north by the Black Sea, and it connects Asia and Europe there is no other city in Turkey similar to Istanbul.
D- The weather in Istanbul is moderate, compared to the rest of the Turkish cities. In the north and east are very cold cities, and in the south are cities with hot weather
E-Istanbul is the commercial capital of Turkey and the meeting place of businessmen and international brands
The only advantage that a foreigner may resort to buying a property outside Istanbul in Turkey is the price difference, and this is true, but we should not forget the following points:
+In the southern coastal cities, the weather is nice during the summer period, which is 4 months, and the remaining months are a harsh winter
+Istanbul services and infrastructure ,transportation, government and educational centers cannot be compared to with any other city with cheaper real estate prices
+The growth, development and possibility of selling the property easily are not available in the remaining cities at the same rate as in Istanbul
4- The different rates of growth in the regions and neighborhoods within Istanbul
After you have specified the city of Istanbul to buy your property for the purpose of living or investment (you, like the vast majority of foreigners), it remains to realize that Istanbul is a very large city, and real estate prices in it vary not only by regions, but sometimes according to one neighborhood, for example you can find a property in A new Kagithane area, at a price of about $ 1,500 per sqm, and if you walk half hour only towards Sisli, you will find that the price of a sqm starts from $ 3,000 for new projects.
This is not the only irony in Istanbul, there are hundreds of similar examples. The reason for this is that Istanbul is a city that expanded rapidly in a disorganized manner and now, when rebuilding some of the neighborhoods, it makes it with a very high investment value, and also not only reconstruction projects, but also to be close or far away from important landmarks like Bosphorus /taksim square / historical city /golden horn etc . Istanbul include vary option close to each other on map but have different value , for example an apartment with direct view of the Bosphorus 3 rooms and a hall will be an average price of 3 million dollars, but the same apartment if we are away from the Bosphorus only 1 km away it will be at a price of less than a million dollars ,,
Another example is an apartment near Taksim Square in a new Beyoglu area, where the price per square meter may reach $ 10,000 and the same. If we move away from Taksim Square and Independence Street in popular neighborhoods, we will find that this price has decreased five times per square meter.
Not all examples can be mentioned here, not even identifying all Istanbul landmarks that affect the price per square meter. You only need to contact our real estate consultant, who will take charge of detailing everything you need about the region in which you want to buy a property.
5- Real estate pricing and the role of real estate consultancy companies
A lot of customers, when knowing the price of a particular property, will immediately judge that it is expensive !! Can you go to a Lamborghini shawcase and say those cars are more expensive than Mercedes?
It is very clear that the immediate judgment on the high price of a property that is due to the lack of awareness by the client about the importance of this property and its features in terms of location, finishing, services, etc.
When we talk about new projects and real estate that are sold for the first time, the property is priced by the developer who is responsible for project sales and not by real estate companies, this information despite its importance, but the vast majority of customers and even those with a high budget do not realize it.
No wonder about that because the Turkish real estate market is large and in the resale of old real estate sometimes prices are manipulated by tiny new companies in the market that seek to achieve gains at the expense of its reputation, while old and big companies that attach great importance to building a strong relationship with the client are always keen to provide Offers appropriate to the customer’s request within the real price in the market.
Real estate companies have a purely service role to the client and charge commissions from the real estate developer, not from the client. Thus the customer who buys a property himself without a real estate agency is in fact not getting a better price but rather pays the same price to the real estate developer and at the same time loses the services provided by the real estate companies that we mentioned earlier in the following article in detail: Don't buy a property in Turkey by yourself.. consult a real estate company
Now we return to the steps of buying a property in Turkey to talk about after we have clarified important facts about the real estate sector in Turkey:
1- Choosing and comparing real estate consultants
There is no doubt that the process of buying a property is a sensitive process for any customer regardless of the purpose of the purchase, and the more the allocated budget increases, the more sensitive and important this science is.
Therefore, every customer has the right to communicate with several companies with the aim of comparing the advantages of the offers submitted by each company, but here we have several very important points that must be paid attention to:
+ Starting communication with a large number of companies without any background on the Turkish real estate market in terms of regions and initial prices in each region and any areas suitable for living and any of them suitable for investment will make the customer a victim of the conflict of consultants from various companies and therefore the customer will not be able to distinguish the professional consultant who gives him the right advice from the junior consultant ,in the resault the biggest loser is often the customer who spent his money on a property that does not fit his goal.
+ Real estate consultants can be evaluated on the basis of the strength of their experience, the accuracy of their information, and the ease of clarifying ideas through maps and videos and everything that may be necessary for that, and it is not correct to evaluate consultants from the prices they provide, as we have said are set by the developer and not by real estate company.
+ The professional advisor is the one who has all the options in the market, so he presents you with your request accurately and adds to it other offers that he think it is more appropriate for you and allows you to compare the offers and highlights the pros and cons of each project presented to you.
+ The professional consultant compares you to the regions and neighborhoods first and the projects second, and to test the advisor ask him about Istanbul districts and neighborhoods instead of the number of apartments in the project and how much land area and simple details you can reach easily ,so from here you can evaluate the real estate consultant information that you will deal with.
2- Communication with the consultants
When communicating with your advisor , note the following points:
+ The real estate consultant who will help you find the right property for you is working for you and therefore he is your friend, if you have previous knowledge about real estate in Istanbul then you have chosen the right consultant to help you and it is better to focus on what he provides you with information and offers instead of Criticize and immediate judgment on offer , try to get why is the price like that and try to understand the specifications of that apartment.
+ The real estate consultant often sends you several offers to enable you to choose and compare, remember that getting every offer of them means communicating with sales representatives in each project to send this offer for you, so the real estate consultant has the right to take your opinion of the offers that he sent you, and if you do not help him You are thus complicating the process and missing out on yourself the opportunity to see offers suitable for your request more if you give your opinion of what was previously sent.
+ Many clients do not know that the real estate consultant works outside the working hours in order to cover their requests and communicate with them at the appropriate time for them, and there is no problem with that at all ,because we believe that the process of buying a property is a sensitive process that requires sacrifices and a double effort,
+ When you come to Istanbul to visit the offers you have received, it is best for you to focus on a maximum of one or two companies who have liked the offers of their real estate advisors in order to save your time and focus on the one hand, and to preserve the effort of the real estate consultant who spent several weeks and sometimes several months to help you find your request , in the end we are all Humans like to see the result of our intense effort that we have made. Ensure that a good real estate advisor has everything you want to visit during your real estate tours.
3- Find the right offer
The right offer is not the cheapest offer or the largest apartment sqm. Rather, it is the property that best suits your needs and your goal of purchase. If your goal is investment better go to the Istanbul center (Sisli ,Beyoglu and Maslak ) where the property prices are high, but it is more feasible for investors, but if your goal is Residential, there is no better area than others in the first place, but according to your needs and the needs of your family, the real estate consultant can suggest the best areas that meet your budget. If you have a specific budget that you cannot exceed, it is better to tell the real estate advisor about it since beginning. This will help narrow the circle from The areas that do not fit your budget, the more you help the real estate advisor with details about your request, the shorter you will be to spend time and energy searching for unsuitable offers for you.
4- Negotiations and choosing the payment method
The old real estate company on the market has extensive relationships with Istanbul projects and therefore the sales officer will be your negotiator during the purchase process to get the best price and the most appropriate payment plan that suits your budget and your request.
The client entering the projects himself without a real estate consutaltant will not achieve any reduction in the price and even if it appears to him, for example, the price of the property may be 100 thousand dollars when the customer himself enters the sales office, they will tell him that this property is 120 thousand dollars and if you want to buy On your own, we can offer a 20% discount, thus the final price is 100 thousand dollars, which is the same price that is given to the real estate company when you enter the project with them.
Also after-sales services and follow-up payments in the case of buying a property in installments is the task of the real estate company, and therefore the customer who buys himself does not get a better price but only loses the after-sales services provided by the real estate companies.
5- Complete the process and after-sales services
In the case of any problem with the payments after signing the contract, the real estate company will interfere with the client’s side to help him in this, sometimes the payments will be difficult due to out of control such as the Corona pandemic and sometimes for special reasons with the client in both cases the real estate company will be the representative and defender of the client’s rights .
For after-sales services such as running electricity, water and the internet in addition to buying furniture, state transactions and everything attached to it, the professional real estate company will assist you in all of this.
6- Applying for Turkish citizenship
The Turkish Citizenship Law in exchange for real estate investment in Turkey is a relatively new law alone and the oldest companies in the market now have more than 20 clients who obtained Turkish citizenship through this law.
To ensure your right to a smooth Turkish citizenship, choose a real estate advisor with previous experience in this topic.
Remember that Right Home offers the process of obtaining Turkish citizenship to its clients without taking any fees
7- Real estate management
If the client likes to rent the property without or with furniture , the real estate company will be ready to help, and also in the case that the customer wants to resell his property, he will get the necessary support and assistance.
Do not hesitate to contact us and get free real estate advice from our dedicated team.