Despite inflation and limited supply, the Turkish real estate market is increasingly attracting real estate investors. We tell you why Turkey is becoming an attractive destination for foreign homebuyers and what economic incentives and opportunities are available to investors

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Despite rising home prices and limited supply caused by inflation and high demand, the Turkish real estate market offers many benefits for those willing to make a forward-thinking move. The combination of rising prices, high demand and affordable offers makes Turkish real estate unique in its own right. 

We tell you why Turkey is becoming an attraction for foreign buyers of residential real estate, and what economic incentives and opportunities are available to investors.

Why do investors choose Turkey?

Affordable cost of living and real estate

On average, a family of four can expect a comfortable lifestyle for about $1,800 to $2,000 per month rent-free. 

The affordable cost of living in Turkey provides savings for investors, thereby contributing to the profitability of their own businesses.  

Turkey also offers competitive residential real estate prices compared to other countries in Europe and the Middle East. Investors can purchase high quality real estate in major cities such as Istanbul, Ankara, and resorts such as Antalya at significantly lower prices than in similarly developed regions.

Business Immigration Opportunities

The Turkish government is encouraging the development of industry and trade in the country. 

For this purpose, 18 free zones have been established with special tax treatment for companies engaged in trading, storage and packaging of goods, banking, insurance and other authorized activities. 

Companies operating in Turkey's free zones do not pay property and real estate taxes, corporate taxes, and VAT on logistics services supplied to third countries.

Developed domestic and foreign markets

Turkey ranks 10th in terms of GDP per capita among countries with a population of more than 50 million people. 

The customs union with the European Union provides direct access to its market, which is 448 million consumers. Turkey has also signed a free trade agreement with 48 countries.

Innovative visa programs for entrepreneurs

Turkey is actively developing innovative visa programs, making the country attractive to international investors and professionals. The Turkish Digital Nomad Visa (digital nomad), designed for digital nomads who can work remotely from anywhere in the world, has been introduced since April 2024. This program makes it easier to obtain a visa and provides unique conditions for working and living in Turkey.

Also available from 2024 is the Turkish Tech Visa, which is designed for foreign entrepreneurs who wish to develop startups in Turkey. This visa provides special benefits and simplified conditions for launching and doing business in the country, encouraging innovation and capital inflow.

These initiatives speak of Turkey's desire to attract talented and experienced professionals, as well as create favorable conditions for the development of new technologies and business projects.

Favorable investment climate

Turkey offers tax incentives for foreign investors, including VAT exemption on the first purchase of real estate and reduced tax rates on rental income. This creates additional incentives for investment in residential real estate.

High returns

Turkey's real estate market offers high returns on investment. The most popular investment option is the purchase of real estate at the construction stage, which allows you to get a significant profit on the subsequent sale of the object. 

In Turkey there are many ways to earn on their real estate, for example - income from rent with the subsequent sale of apartments. Investors can also count on a steady stream of income from new apartments that are part of apart-hotels. Such real estate is in great demand among tourists, especially in popular tourist and business centers. 

New trends in Turkish real estate

Turkey is becoming increasingly popular among investors from the Middle East and Asia. Economic and cultural proximity as well as attractive investment conditions contribute to the increasing demand for Turkish real estate in these regions. 

Cultural and religious ties with Arab countries contribute to a comfortable environment for investors from the Middle East. Citizenship by investment programs and simplified residence permit procedures also play an important role in attracting investors from these regions.

With the increasing number of tourists and the popularity of Turkey as a vacation destination, investors are investing in real estate in resort areas such as Antalya, Bodrum and Fethiye. These regions are known for their beautiful beaches, mild climate and developed tourist infrastructure, which attracts both tourists and investors. 

Real estate in resort areas provides rental income, especially during the high tourist season. Investors also consider such investments as long-term, given the constant growth of real estate prices. 

The Turkish government is actively investing in infrastructure development, including transportation, healthcare and education. The development of the transportation network, including new airports, expressways and railroads, is improving accessibility to different regions of the country. Reforms are also underway in the health and education sectors to improve the quality of services. 

In addition, the country is undergoing a major renovation of buildings. Under this program, old and dilapidated buildings are replaced with new, modern buildings that meet high standards of safety and energy efficiency. High quality control of construction by the government ensures that new and renovated buildings meet modern standards and requirements. 

Such measures make real estate investments in Turkey even more reliable and attractive for investors, ensuring long-term sustainability and growth of asset value.

Advantages of investing in real estate in Turkey:

Portfolio diversification  

Investors can confidently reduce the risk of loss due to market volatility by diversifying their portfolios across different asset classes and locations.  The variety of offerings in the market allows them to choose the best options depending on their goals and risk level.

In addition, investing in real estate in Turkey provides access to a market with opportunities for growth and profitability. 

Residence permit for real estate owners

Turkey entitles investors who purchase real estate in Turkey with a value of $200,000 or more to obtain a residence permit.

The residence permit applies to all family members and children can receive an education. 

Holding a residence permit in Turkey also provides the ability to travel freely in most countries without the need for visas. In addition, residence permit holders have access to quality medical care and can benefit from various social programs.

Passive income potential  

In addition to the country's natural and cultural beauty, affordable real estate is another reason why most investors choose Turkey.

The country's thriving tourism industry and growing demand for housing create a steady source of income for property owners. For example, foreign investors can earn passive income by renting out their apartments. 

Citizenship through investment 

One of the most attractive ways of acquiring Turkish citizenship has become its registration through investment. 

This way not only provides convenience and speed of the process of obtaining a passport, but also provides a wide range of options for investment. 

Buying real estate remains the most popular choice for 90% of applicants to the Turkish citizenship program. Turkish citizens enjoy visa-free entry or visa on arrival to many countries, as well as access to quality healthcare and education.

Personal Vacation

Having your own property in Turkey will allow you to enjoy a vacation on the Mediterranean or Aegean Sea whenever it is convenient for you. This is a great opportunity to spend your vacation in the cozy atmosphere of your own home, avoiding the hustle and bustle of hotels. It is also a great way to experience the local culture, cuisine and attractions, making your vacation unforgettable.

Where to invest in Turkey?

Investing in real estate in Turkey is a wise decision that can bring not only a stable income, but also the opportunity to become part of a developing country with a rich history and culture.

Despite the challenges, Turkey continues to strengthen its position as an attractive destination for residential real estate investors. Economic incentives, programs for obtaining residence permits and citizenship through investment, as well as new trends in the market create favorable conditions for investment. 

One of the most attractive destinations for is business class apartments in Antalya:

ANTA HOME NEON:

- A business class complex on the main tourist street of the city.

- Redevelopment project.

- Apartments 2+1, view penthouses, area from 72 m².

- Cost from 130 000 €.

- Located just 3 minutes from the beaches and historical sights.

- Estimated payback on daily rent - 9.8% per annum.

The project has been developed by a reliable international developer Antagroup, guaranteeing high quality construction. 

You can find more offers, current prices and competent advice on purchasing real estate from the developer AntaGroup by clicking here. 

Daria Rogova - Head of Insurance at Visit World

To move, travel or work safely in a new country, you will need travel insurance. You can apply for an extended policy on our website here.

Products from Visit World for a comfortable trip:

Checklist for obtaining a visa and necessary documents in Turkey;

Legal advice on immigration in Turkey;

Insurance for residence permit in Turkey.

More articles on the topic: 

Real estate in Turkey - is it still an attractive investment destination in 2024?

Tourist real estate: prospects and opportunities for investors.