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Back to May 2012, the condition of reciprocity for foreigners who wish to buy property in Turkey was abolished under Article 35 of the Land Registry Law No. 2644. This change opened the Turkish real estate market to a broader range of foreign buyers.
Furthermore, in 2018, Turkey introduced a citizenship by property investment program, under this program, foreigners who make a qualifying property investment in Turkey, including buying an apartment in Istanbul, are eligible to apply for Turkish citizenship.
Overall, the changes in property ownership regulations and the introduction of the citizenship by property investment program have contributed to the increased interest of foreigners in buying apartments and properties in Istanbul as a potentially lucrative investment opportunity.
However, it's important to approach the process with careful consideration and thorough research. Here are some essential tips to keep in mind when buying a property in Istanbul:
1-Define your goal
Determine the purpose of your purchase, whether it's for investment, a vacation home, or permanent residence. If you are willing to invest, then you must assess the suitability of the property type for your investment goals.
Considering this at the very beginning will help you narrow down your options and make more informed decisions.
2-Research the market
*Try to understand the market structure and which kind of property would be suitable for you. Conduct a thorough financial analysis to understand the potential return on investment ROI. For example, apartments in popular areas such as Kadikoy or Başakşehir may offer better rental potential, while villas or commercial properties may have different investment prospects. Besides, if your goal is to generate rental income, evaluate the rental market in the area. Consider factors such as rental demand, rental yields, and rental regulations.
Consider factors such as purchase price, taxes, transaction costs, ongoing maintenance fees, and potential rental income or capital appreciation. Or what are the features of living or vacation properties which suit you.
*Familiarize yourself with the real estate market in Istanbul. Stay updated on current trends, property prices, and emerging neighborhoods.
* Set your budget ranges for your property purchase according to that. Consider not only the purchase price but also additional costs like taxes, fees, and maintenance expenses. Make sure you have a realistic understanding of what you can afford.
3- A local real estate agency’s assistance is needed.
Seek professional assistance by communicating with a reputable real estate agency who has experience in the Istanbul market. They can provide valuable insights and assist you in making informed decisions.
As well as a knowledgeable agent can guide you through the process and will help you consider the location carefully based on your preferences and needs, which is the hardest part since Istanbul is a vast city with diverse neighborhoods. Factors to consider include proximity to amenities, transportation links, safety, and potential for future development.
4-Avoid last-minute issues.
Before making a purchase make sure to consider the legal and financial aspects. The agency will provide a lawyer to consult to review the legal documents, contracts, and regulations. Arrange your finances, including securing a mortgage if necessary, and factor in additional costs such as taxes, maintenance fees, and utility expenses.
5- Visit property in person.
Whenever possible, visit the properties you are interested in to assess their condition, surroundings, and suitability. This will give you firsthand experience and help you make an informed decision.
Otherwise, the agency you hired can make an online tour for you in case you cannot visit.
6-Title deed verification.
Verify the property's title deed (Tapu) to ensure that it is legitimate and free of any encumbrances or disputes. Again, this can be done by the real estate agency.
7-Consider the future development.
While buying a property in Istanbul, consider its resale potential, assess the potential for future development and infrastructure projects in the area. This can positively impact the value of your investment over time. It is better to choose a property that has a good potential for appreciation in value over time. Factors such as location, neighborhood development, and infrastructure improvements can influence the property's long-term value.
8-Negotiate and ensure the deal.
Once you find a property that meets your requirements, the agency will hire a professional translator for you if necessary to ensure clear communication.
9-The agency’s follow-up.
After-sales services: Assistance through Interior design, furniture, renting your property, selling it later, following the installments, ensure the progress of the construction. etc...
Remember, investing in real estate involves risks, and it's important to carefully assess the alternatives based on profitability and potential returns. And these tips are meant to provide general guidance, and it's crucial to consult with professional real estate agency who have expertise in the Istanbul real estate market to ensure a smooth and successful property purchase and to will increase your chances of a successful property investment in Istanbul.
