To say that the deferred demand for Turkish square meters turned out to be huge and that a very long queue immediately formed for them would be a strong exaggeration. Some of our compatriots, of course, have already managed to acquire their own little house on one of the coasts of Turkey, but the count of domestic properties here is still in single digits. There are several reasons for this.
Firstly, the permissive law is only six months old, and indicative first results can be summed up no earlier than a year after it came into force. Secondly, our people have always been rather slow to harness, but then they drive so fast that you cannot catch up. In London, for example, immigrants from the CIS also appeared far from being among the first contenders for real estate, but now they have bought so much housing in the elite areas of Mayfair, Knightsbridge, Belgravia that they have earned the nickname "new Arabs" from local realtors. Thirdly, Spain, Greece, Cyprus, the Czech Republic, and Bulgaria have developed unprecedented activity on the domestic real estate market, so Turkey now has to play the difficult role of a catching-up country. Even despite its tourist popularity, which is already almost exceeding the bounds of reason: this year Turkey expects about 1.5 million tourists from the CIS.
However, residents of the CIS are also in the same catching-up role on the Turkish market, where Germans, Brits, Dutch, Irish, Scandinavians, Israelis, and even a few Americans and Canadians have already clearly marked their presence. According to various estimates, from 7,000 to 8,000 EU citizens currently own property on the Turkish Riviera, and overall Turkey ranks 8th in popularity among Western Europeans, only slightly losing to Greece and Portugal.
What attracts Europeans to Turkey is not hard to understand – the same things that attract us. Among Turkey’s main advantages are its mild Mediterranean climate, guaranteeing at least 300 sunny days a year, reasonable transport accessibility (from Europe to Turkey is at most 3.5 hours of flight, and ticket problems rarely arise even in summer, at the height of the tourist season), a simplified visa entry regime, the presence of developed infrastructure in coastal areas, and the upcoming EU accession with all the ensuing consequences (now it is Turkey’s turn to use the advertising slogan that until recently was actively exploited by developers and realtors of the Czech Republic, Slovakia, Malta, and Cyprus). And, of course, prices, which some market analysts compare to those of Mallorca 20 years ago.
In the coastal areas of Turkey, the lower price bar for apartments is set at about 30 thousand euros (it should be noted right away that the national currency of the country is the Turkish lira, but the real estate market prefers to quote prices in euros rather than in the dollars we are more accustomed to). Two-bedroom apartments in Belek (with a living room, balcony, bathroom, and kitchen furniture) are on sale for 40 thousand euros, three-bedroom apartments in Antalya (with an area of 125 sq. m) for 31 thousand euros. But you can save even more and buy a one-room apartment in a residential complex in the center of Kemer (10 sq. m room plus 10 sq. m balcony, with the beach nearby) for only 17 thousand euros. Needless to say, neither in Spain nor in Cyprus, let alone in Greece or Portugal, can such amounts even be discussed.
Fans of large sizes and exclusive forms will certainly find something much more fashionable – if they are ready to part with 300-400 thousand euros. Turkish townhouses with an area of 120 square meters or more are priced at 55-65 thousand euros and above. Detached houses already cost at least 75 thousand, and as for villas, as is well known, there is no price limit at all – here even sums of several million euros may look quite realistic.
Of course, as Turkey’s EU accession date approaches, the price bar will begin to rise – to understand how fast this movement can be, it is enough to look at the situation in the Czech Republic, or even better, in Bulgaria. And in general, the global real estate market is currently on the rise, and stable price growth is observed in many countries. So Turkish real estate is also a reliable investment option, allowing not only to preserve but also to increase savings.
As already mentioned, the opportunity to purchase apartments and houses in Turkey has opened up for our compatriots quite recently. And many, even among those who have vacationed on the Turkish Riviera more than once, simply do not know where to start, how to conduct business, what financial and time costs to prepare for, and so on. In fact, there is nothing to fear – the procedure for buying Turkish real estate into private ownership is simple and absolutely transparent.
You will naturally have to start by selecting a suitable property. By the way, European experience comes in handy here: many Europeans traditionally use their vacation time for this – they go to Turkey to relax, and at the same time look for real estate and even sign a preliminary purchase contract. Although, of course, you can carry out the entire operation without leaving your homeland – with the help of Internet sites and catalogs available from intermediary firms. At the same time, paying close attention not only to the architecture, size and, accordingly, the price of the property itself, but also to the region where it is located.
Realtors around the world note: our compatriots are capricious clients. If, for example, in Bulgaria, Germans, Brits and Scandinavians willingly buy property within a radius of 10-15 or even 20 km from the sea, then for our compatriots even 1-2 km is already a lot. They want houses located almost at the water’s edge, and in such a way that the sea, a bank and a theater are at equal distance. This is far from possible everywhere in Turkey.
For example, the bustling around the clock Marmaris or the prestigious Belek are built up quite densely; free plots on the first coastline rarely appear there and, as a rule, are given over to the construction not of cottage settlements or apartment buildings, but of new hotels that bring huge profits to the country. In these areas, if it is really possible to find housing, it is a little farther from the water.
But in the more extended and flat Alanya, land still remains. Here, cottage construction is being carried out very actively, and it is not excluded that some of the plots will be given over to the erection of cottages and apartments. The resorts of the Aegean Sea less settled by our people – Bodrum and Kusadasi – are located in mountainous terrain. Here everything strongly resembles Greece, and it is no wonder – you can get to the Greek island of Kos by ferry in just a couple of hours. But the rocky coastline, indented with numerous coves and bays, dictates its own rules of the game to the construction market, so you should not particularly count on the extreme proximity of the sea. Most likely, you will have to climb uphill from the water to your own house.
Choosing a region is also partly choosing your neighbors. For example, the prestigious resort area of Fethiye, also located on the Aegean coast, at the foot of Mount Mendos, is a traditional haven for the Dutch and the British. Germans, also by tradition, often give preference to Alanya: both among the guests of local hotels and among the owners of this property, German citizens are the overwhelming majority.
Our compatriots, however, should pay special attention to Antalya. This city with its developed infrastructure, pleasant climate and undisguised interest in friendship with our country is an excellent option. Although there are so many of our citizens in Turkey now that you will not feel lonely wherever you go – to the Mediterranean, Aegean, Black, or even the inland Sea of Marmara.
After a specific property has been chosen, the time comes for bureaucratic procedures. It should be noted right away that, according to a law adopted in Turkey back in 1934, only citizens of those countries that in turn allow Turkish citizens to buy their land have the right to acquire land as property. Residents of Russia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Ukraine, Moldova, Uzbekistan, Tajikistan and Turkmenistan do not belong to such countries, therefore they are deprived of the opportunity to acquire undeveloped land plots, but have the right to lease them for 49 or 99 years. Citizens of Armenia as individuals currently cannot buy real estate in Turkey at all.
But citizens of Estonia, Latvia and Lithuania, due to the current geopolitical position of these countries, can without restrictions acquire both the real estate itself and land – as can citizens of practically all Western European states. And one more important point: mortgage loans secured by real estate are issued by Turkish banks only to Turkish citizens – this service is not provided to non-residents.
The transaction formalities include verification and approval by the General Staff of the Turkish Armed Forces (the military must make sure that the property being sold is not of strategic importance) and obtaining a resolution from the Main Cadastre Administration, which is located in Ankara. As soon as both of these organizations give their positive conclusion, the transfer of ownership rights is registered at the local Cadastre Administration. Usually all checks take 8-10 weeks, but the registration itself takes just one day. Upon completion of all procedures, the buyer receives in hand the tapu – a document certifying property rights, and the matter can be considered settled.
However, all of the above applies to buyers of real estate acting as individuals. However, it is also possible to buy square meters as a legal entity. Registration of a company in Turkey usually takes five to seven days, after which property rights to real estate are formalized literally within one or two days, while there are no restrictions on the properties. However, registration of a company, doing business, as well as serious economic investments are a serious topic deserving a separate discussion, which we will leave for next time.
Naturally, the process of buying real estate requires certain expenses. Today, the purchase and sale tax is 3% of the declared value of the property. Other expenses related to the formalization of property rights (translation and notarization of the passport, various fees) usually do not exceed $200. The annual property tax in Turkey is extremely low – for the housing stock it is only 0.4% of the declared market value of the property. Moreover, the tax can be paid in two equal installments: the first one in March and April, the second one in November. Buyers of new buildings during the first five years enjoy certain benefits and pay even less. There is also a garbage tax established in the country – its amount is determined by local administrative bodies depending on the type of building and its location. Today, the amount does not exceed approximately $40 per year.
As for utilities, the expenses are not high here either. For example, if the housing is in an apartment building, the management company once a year at a general meeting of residents approves the amount of monthly fees – this money pays for concierge services, building cleaning, repair of engineering systems, cleaning and improvement of the adjacent territory, as well as fuel – if the building has central heating. On average in Antalya, for example, payment amounts range from $15 to $50 per month. In addition, you will have to pay separately for electricity ($0.13 per kilowatt, including taxes) and water ($1.8 per cubic meter, including taxes).
Until the moment when our compatriot becomes the owner of Turkish real estate, his status in the country is no different from that of any tourist – an ordinary visa, which can be obtained for $20 at the airport, gives him the right to stay in Turkey for two months. However, immediately after the transaction is completed and the title deed is received, everything changes – a CIS citizen is entitled to obtain a six-month tourist multi-visa (granting the right to a three-month stay), a long-term annual visa, and then a residence permit. And, possibly, in this way to join the cohort of foreigners who settled in Turkey 15-20 years ago and do not even think about changing their address.