Real estate investment opportunities in Turkey
In recent years, Turkey has become the focus of investors' attention, as it has all the factors for successful investment, as the Turkish economy has achieved qualitative leaps and remarkable growth, and Turkish President Recep Tayyip Erdogan has confirmed that his country has recorded a growth of 3.5 times during the past 17 years, and Turkey has achieved a comprehensive renaissance and placed at the forefront of the major countries and great powers.
This growth included most of the fields and sectors within the Turkish economy, such as the agriculture, industry, trade and tourism sectors in Turkey, but the real estate sector in Turkey is the most important of these sectors, as it achieved rising growth and resounding success that drew the attention of investors from all over the world to turn to real estate investment in Turkey, as a result of the facilities and advantages provided by the Turkish government to those wishing to buy real estate in Turkey, including the amendment of the real estate ownership law in Turkey in 2012, which allowed citizens of many countries to own property in Turkey, where the principle of reciprocity between Turkey and other countries was raised and foreigners of most nationalities could own and invest in Turkey within simple and easy conditions, in addition to the facilities for obtaining Turkish citizenship, which will be mentioned later in this article. According to Turk Press news agency, European studies indicate that Turkey ranks second in the world after New Zealand in terms of real estate sector activity.
What are the types of real estate investment in Turkey?
- Investing in residential real estate in Turkey:
This type of real estate investment is the most widespread and desired by investors, as it is the safest investment, and it includes apartments, hotel apartments, villas, townhouses, and every property suitable for housing.
This type of real estate is characterized by being own by the investor, who can live in it or invest it by renting it or reselling it later or any other form of investment. Residential real estate is also characterized by investment returns starting from 2% and up to 8% annually, you just have to choose the right property with the help of our expert advisory team, which will direct you to a profitable and guaranteed investment in Istanbul according to what suits your budget.
Taxes in residential real estate are usually lower compared to commercial real estate, as it is 18% for commercial real estate, and ranges between 1% - 8% – 18% for residential real estate, where the type of property, its area, building level and price per square meter play a role in determining the value of tax.
To learn about tax exemption laws when buying real estate in Turkey, click here
Residential real estate is not limited to residential apartments only, but also includes hotel apartments, which are available in Istanbul within projects managed by the most famous and most luxurious international hotels, such as The Ritz-Carlton, Sheraton, Hilton, Rotana and Divan, which offer investors privileges including discounts and offers in all hotel branches around the world.
The most important feature of investing in hotel apartments in Istanbul is the high investment returns compared to residential apartments. Hotel apartment rental contracts are flexible, and they can be rented for days, weeks or months, and they can also be rented annually, and the rent is paid in advance, and the rent is often in dollars, which represents safety for the investor and a guaranteed profit.
Sheraton hotel apartments best choice for investment and Turkish citizenship
- A luxurious lifestyle awaits you in this project.
- The project is a single tower with modern architecture built on an area of 7600 square meters.
- The project consists of 40 floors, the basement floor for shops with 40 shops, then there is a floor dedicated to a VIP meeting room, then 4 floors dedicated to offices with 110 offices, then 10 floors dedicated to the Sheraton Hotel with 268 rooms, followed by two floors for social facilities such as gym, sauna, billiard and more, then 20 floors dedicated for residences. There is also a floor dedicated to exhibitions, followed by a floor dedicated to an airstrip at the top of the tower, it is actually a special area for landing helicopters, which is the only and unique in the area.
- There are 21 elevators in the project, 7 of them are for investment apartments. The project also includes 3 entrances, an entrance to the hotel, an entrance to investment apartments and an entrance to commercial offices.
- It contains 228 apartments, the types and options of apartments available in the project vary between 0+1, 1+1 and 2+1, and it is possible to combine two or more apartments if you want to get a large and spacious apartment within the Sheraton Residence.
- Sheraton Hotel Apartments has been designed with a concept that reflects the high quality of the smallest architectural details, as well as luxury due to the use of high-class materials in construction and decoration.
- The high floors in the project provide wonderful views of the nature of Bahcesehir, its green spaces, and the lake.
- The project provides special services for investors and residents, including a special reception for home owners and guests, apart from hotel reception, 24-hour room services, complex security, technical services, valet parking, wake-up service, exchange office, a fully equipped business center and other distinguished services which will give you comfort and luxury housing.
- The project offers a rental guarantee for 3 years with a return of 7% for hotel apartments, and 5 years with a return of 5% for offices.
More information about the project in this article: Sheraton hotel apartments best choice for investment and Turkish citizenship
Another form of residential real estate is villas in Turkey, which are considered a successful investment, especially in the tourist areas where they can be rented to tourists for holidays in Istanbul next to the sea, forests or near the Bosphorus. It is worth noting that the prices of villas in Turkey are increasing year after year, and this continuous rise is one of the most important motivating factors for buying a villa in Turkey. Villas are one of the most expensive types of real estate, so you should pay attention when choosing the right villa for several important matters such as location, building quality, space, view, finishes, etc., and most importantly, you must determine your goal of buying a villa in Turkey, is it for investment, permanent residence, vacation or tourist rental or to create a project. Determining your purpose and goal of buying a property will make it easier for the real estate consultant to direct you to the appropriate options for you and ensure that you buy the right property and the perfect investment.
- Investing in commercial real estate in Turkey:
Commercial real estate includes offices and shops, which are often within towers or within a residential project in an area designated for shops within the project.
There are many reasons that drive investors to invest in commercial real estate, the most important of which are that they are often sold or rented for a long period, as the term of the contract can extend to tens of years, in addition to the possibility of returning the capital in a short time and the permanence of obtaining fixed income on time.
There are several factors and specifications for the ideal commercial property for investment, the most important of which is the location of the property, as if it is in a commercial area in which companies, factories and shops of all kinds are spread, such as Basin Express or Maslak, or an area with a high population density, and it is close to the main roads in the city.
- Investment with the aim of obtaining Turkish citizenship:
Obtaining Turkish citizenship and the Turkish passport has become a top priority for investors, due to the incentives provided by the Turkish government to investors and businessmen in the field of investment in Turkey and trade, and the facilities it provides regarding obtaining Turkish citizenship and Turkish passport, as the positive adjustments continue in Saleh who wish to obtain Turkish citizenship and there are many ways and means so that everyone has the opportunity.
According to the changes that took place in the regulations for implementing the Citizenship Law announced in the Official Gazette announced on January 14, 2017, Turkish citizenship is granted to foreigners:
- When buying a property in Turkey worth at least two hundred and fifty thousand dollars, $250.000, provided that the property is preserved and not sold for three years.
- When investing with a fixed capital of no less than five hundred thousand dollars, $500.000.
- Turkish citizenship is granted to foreigners who show a document proving that they have deposits in the bank with a value of not less than five hundred thousand dollars, $500.000, provided that the deposits remain in the bank for three years.
The law came to reduce the required limit for obtaining Turkish citizenship by purchasing a property worth 250 thousand dollars, after the required amount was half a million dollars, and before that it was one million dollars.
On March 23, 2021, some amendments were issued regarding the laws of obtaining Turkish citizenship through investment and the purchase of real estate in Turkey with the aim of preventing circumvention of the law, as follows:
- Preventing the recycling of the property, i.e., selling it to a Turkish person and reselling it to another investor of the same nationality as the first investor to obtain Turkish citizenship after 3 years.
- The property can be sold after obtaining Turkish citizenship, that is, 3 years after purchasing it to a Turkish person or a foreigner directly, but the new foreign buyer cannot obtain Turkish citizenship.
- When you buy a property worth 250 thousand dollars with the aim of obtaining Turkish citizenship, you are not entitled to resell the property after obtaining Turkish citizenship, that is, after 3 years to the same person who sold you the property, that is, the property cannot be sold back to the original owner, whether this owner is a person or company.
- When applying for Turkish citizenship or after obtaining it, when you discover a deficiency or forgery in the identification papers or any required files that can withdraw Turkish citizenship from you even after you obtain it.
What are the advantages of obtaining Turkish citizenship?
- The strength of the Turkish passport, as the Turkish passport ranked 30th in the world in 2021, and gives its holder the right to enter 72 countries without a visa.
- The Turkish passport and Turkish citizenship are processed and delivered in a short period of 30 to 90 days.
- The possibility for holders of a Turkish passport and Turkish citizenship to benefit from retirement programs as a Turkish citizen.
- The Turkish government provides free education and payment plans to the university for holders of Turkish passport and citizenship.
- The Turkish government allows dual citizenship to those who hold Turkish passports, as they can also have dual citizenship.
- The Turkish passport has a validity of 10 years upon receipt and can be renewed for life.
- The economic importance of Turkey, including the continuous reforms undertaken by the Turkish government in order to revive its economy always.