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If you are one of the investors who bought real estate in Istanbul between 2015 and 2022, your property must have achieved a good investment return on capital, and many investors today want to end this investment and reap the profits to start with a new investment, since most of these properties were in projects under construction when they were purchased and now, they are Ready.
Although this idea when buying a property was portrayed as very easy, no less than 80% of investors today are unable to resell their properties for reasons that we will learn about in today’s brief article, but before that we will answer the main questions in the article, which are how to sell real estate property? And what legal papers are required?
How do I sell my real estate in Turkey?
The property can be sold in Istanbul by communicating with a real estate broker with long experience in the market and sharing the property information with the aim of giving you a correct assessment of its current price in the market and thus finding the right customer for you.
But why did we say in Istanbul and not talk about Turkey in general?
Istanbul is the most densely populated city in Turkey, as the population of Istanbul is 4 times the number of the population of Ankara the capital, although the area of Istanbul geographically does not exceed 25% of the area of Ankara.
Thus, this population density is necessarily followed by a density of commercial businesses and a very rapid movement in renting and selling real estate, whether residential or commercial.
Outside Istanbul, real estate prices are relatively cheaper, and the main reason for this is the lack of demand, and this is what we found clear that prices in Antalya, south of Turkey, increased by 4 times due to the increase in Russian demand for them, after the start of the Russian-Ukrainian war and the desire of quite a few residents of the two countries to own a property outside Their countries, and the fact that Turkey took the side of the mediator who has friendly relations with both parties, the Turkish coasts were the first destination for those wishing to buy real estate, which led to a significant increase in demand, and this was followed by a clear increase in prices as well.
Thus, we can say that the resale of used properties (or even new ones) has few opportunities in areas with low demand, which are all Turkish cities except Istanbul.
As for the increasing demand in the southern coasts, these properties were purchased for the purpose of spending holidays and not for the purpose of investment, and this means that despite the increase in the number of new properties sold, this does not facilitate the sale of used properties in a large way.
What are the papers required to sell a property in Turkey?
1- A copy of the real estate ownership document (TAPU)
2- Notarized identity card (translated copy of passport)
3- Your Turkish tax number
4- 2 passport size photos
5- Compulsory earthquake insurance (known as DASK insurance)
6- Municipality evaluation document
7- The real estate appraisal report (mandatory) must be ready before submitting an official sale application to the Land Registry Office.
What are the costs of selling real estate in Turkey?
Depending on your area and the choice of real estate agent, costs and taxes related to selling your property in Turkey (in relation to their fees) can vary.
However, when you sell your property, be prepared to pay the following fees:
*Real estate agent fees
*Notary costs
*Title deed transfer tax (2%) based on the agreed sale price.
*Earthquake insurance (which you should already have, but if not, you'll need to buy before you can sell)
*Property appraisal costs and property survey report costs
*Potential capital gains tax if you sell your property for more than you bought it for in less than 5 years.
Now that we have finished the legal section of the article, we will talk from an investment point of view and what are the reasons that make 80% of real estate difficult to sell immediately at the price required by its owner.
When you talk about selling your property with the aim of making a profit, it is assumed that you bought your property in the beginning with the aim of investing.
What are the specifications of the investment property?
*Being in a city with high demand
Whether the real estate purchased for the purpose of investment is ready and invested through leasing, or it is a real estate under construction (which is best to achieve a higher return) and the owner wants to sell it upon delivery of the project, this real estate must be in an area with high demand and an active movement for sales.
Real estate in large cities of Turkey has a much higher demand than small cities, and this is what justifies in principle your inability to sell your property in Sapanca, Yalova, Antalya or Trabzon.
*To be in a high demand area
Istanbul real estate has a much higher demand in the central regions, since the number of new projects in it is few compared to the center, west and east of Istanbul.
Therefore, even when we are talking about the city itself, which is Istanbul, when you buy a property in an area far from the center, resale will not be easy and profitable for you.
This explains your inability to sell your property in the areas of Basaksehir, Basin Express, Bahcesehir, Essenyurt, Beylikduzu, and Büyükçekmece easily and make a high profit.
*It must have investment specifications in the first place
The number of apartments in the project is inversely proportional to the ease of resale, as well as transportation services, commercial and educational centers, all of which greatly affect the buyer's decision who wants to buy your apartment.
This justifies your inability to resell your property in a project such as Deniz Istanbul, which includes more than a thousand apartments and villas dedicated to spending holidays, far from transportation and vital centers.
(The project is unique for those wishing to have a holiday home, but it is not suitable for investment).
*The right timing
Perhaps this is one of the most important points that most real estate consultants miss in the market today when they provide advice to the client, and it is not surprising that most real estate consulting companies have a record of no more than 3 years of work in the market and therefore they have not been contemporary with the development and market trends during the past ten years.
As examples of wrong advice in terms of timing, it is buying a property in an investment project after 85% of the construction is completed and trying to sell it upon delivery.
Also, buying property in a project under construction in its early stages and not selling the property upon delivery.
*Density of new real estate in the area
We mentioned at the beginning that new real estate near the center is better in terms of investment because it is characterized by scarcity, and therefore the opposite is true. When many new projects gather, even if some of them have investment characteristics, it makes resale very difficult, because there is a lot of supply in the market.
This justifies your inability to sell your property in the Sparta Kole region or Kayaşehir and some of the neighborhoods of Beylikduzu and Harami Deriye from Essenyurt, since all these areas are new projects with a rate of more than 90%.
Since this article is brief, we will not be able to write the rest of the points in detail, but always remember that you can communicate with our professional team with 10 years of experience in the real estate market and always get a free consultation.
If you read this article before you buy your property, it is better for you. We will help you choose the most appropriate investment property.
