Is Investing in Property in Turkey High or Low Risk?
If you’re thinking about investing in property in Turkey, it’s important to understand the risks involved. The country’s economy has been growing at a rapid pace (and has the inflation rate) which has seen demand for real estate surge. Rising home prices make now a good time to invest in Turkish property but there are still certain things you should keep in mind before buying property in Turkey.
What You Need to Know Before Buying a Home in Turkey
Whether you’re buying a home as an investment or to live in, there are some key factors to consider before making the decision. Asking questions like: Is it risky to invest in real estate in Turkey at this current moment in time? Should you buy now or wait? Are there ways of reducing your risk that doesn’t involve putting off making a purchase altogether?
What kinds of offers should you be looking for and what can you do if something goes wrong with your deal down the line? But first, let’s look at how profitable it is to invest in Turkey, and then the pros and cons of investing in real estate in Turkey.
Is Turkey a Good Country to Invest in Property?
If you purchased a property in the last few years your property price would have increased. You’d have more equity in your home and capital gains. This has been partly due to the increased demand for Turkish property, especially by foreign buyers as the Turkish Lira offers competitive bargains when comparing hard currencies like EURO and USD.
As with any investment, you have to evaluate all of your options before diving in. It may be worth it for you to start looking into investing your money and expanding your business abroad. If you do so, you’ll likely want to do some research on what kinds of returns and risks are associated with investing money in property in Turkey.
There’s no way to predict exactly how your investments will go but had you bought recently, your property would be worth more than what you paid. However, past performance does not guarantee future results so it’s important to research your areas before committing to buying.
The Pros of Investing in Property in Turkey
Outside of Turkey's recent inflation, it has one of Europe’s most stable economies and Ankara has recently been lauded for its economic management. Due to the strong growth, experts predict investment properties in Turkey will continue to increase over time. The Turkish Lira's recent sharp decline has made real estate much cheaper in hard currencies with property sales soaring by 113.7% in December 2021.
Turkey is a holiday hotspot and an incredibly affordable escape to the sun for Europe and the United Kingdom. Medical tourism is also a huge contributor to the national economy with foreigners flocking to Turkey for world-class treatments at a fraction of the cost in their home countries.
The process for foreigners to purchase property in Turkey has been streamlined and simplified compared to what it was before. Using a real estate agent who specializes in Turkey property sales to international buyers also helps simplify the buying experience. You can read for more details on the page Real Estate Purchasing in Turkey.
The Cons of Investing in Property in Turkey
Investing in real estate is often thought of as a safe, long-term investment. And when done correctly, it can be just that. In fact, there are lots of reasons why real estate has a solid place in real estate investors’ portfolios. But if you’re thinking about investing on a large scale, it’s important to consider all aspects of the investment before diving into something big and expensive like building and renting out a home or apartment complex.
Some things to think about include the issuance of title deeds and their accuracy, existing debt on the property, accurate land registry records, taxes, repairs and maintenance costs, is it located on a major earthquake faultline, and turnover time in the market (average time to sell).
The decision to invest shouldn’t be taken lightly; find out what makes your investment smart so that your risk—and reward—is controlled. Before investing in an overseas market, make sure you ask yourself: Is it worth my time? What kind of return am I expecting? Could I sell this property with ease on the current open market given the outlook for real estate in Turkey? What if the Turkish Lira continues to decline? What about geopolitical instability in other regions of the world - will this impact my property in Turkey?
Where Are the Best Areas to Invest in Property in Turkey?
Buying a home as an investment is very different from buying your own home to live in. If you want to invest in real estate, be sure you know what you’re getting into before investing.
Always consult with your financial advisor or experienced local real estate agent before investing in something like property. If you’re looking for some guidance on where to buy, here are three cities that may offer up a solid return on your investment: Istanbul, Bursa, and Antalya.
Istanbul is one of Europe’s largest cities to invest in and considered one of its most beautiful. It also enjoys proximity to multiple European capitals and Dubai (the Middle East's largest hub), which makes it easier for ex-pats to travel home when needed.
Bursa is known as a green city due to its widespread greenery and features historical cobblestoned streets in the old part of town. Bursa also has snow resorts that attract international and local tourists.
Antalya is a famous Mediterranean resort town with miles of sandy beaches and brilliantly-blue, azure waters. Antalya’s airport connects to several international destinations so access can be direct during the peak tourism season: summer.
You can check out the page of Top 10 Cities in Turkey to Visit to see more cities to invest in.
How Much Should I Spend on Mortgage Payments?
Of course, deciding how much you can afford to spend on a monthly mortgage payment is an important part of becoming a homeowner. It's often recommended that your housing costs (mortgage payments, property taxes, and insurance) should be no more than 30% of your take-home pay.
Paying less than that means you'll have money left over at the end of each month that can go toward savings and other investments, which can help build equity faster. On the other hand, spending more than 30% leaves less room for error in case of unexpected expenses if your budget is limited.
Invest Safely in Property in Turkey with Antalya Homes ®
If you’d like to see what’s possible for your budget, Antalya Homes ® offers remote and in-person viewings. Enjoy an obligation-free discussion for property investment opportunities in Turkey where our friendly team of professionals is more than happy to help.
We speak more than 20 languages and are always ready to welcome you to our offices. Contact us now!