Turkey is on one of the fastest growing global emerging markets. It’s prospective European Union membership has opened the floodgates of foreigners interested in buying property in Turkey. The increase in Turkey’s political and economic stability is likely to add the multitude of world travelers that flock to the country’s pristine beaches and rich ancient cultural sites.
Turkey’s impending EU membership provides growth potential that will certainly boost the prices of real estate there in the future. Buying property now can lead to gains as property prices there continue to increase. The property prices in Turkey are significantly lower than other European destinations and still at value prices. Taxes are comparatively low in the country, as well. Property investment experts Amberlamb rated Turkey’s property sector as one of the top five expected European market performers in capital terms of capital appreciation in 2007. Both residential and vacation properties are available and profitable purchases for foreign nationals in Turkey. Additionally, housing availability trails demand in the country. Since Turkish parliament ratified a law in January 2006 allowing foreign nationals to purchase property, foreign nationals are afforded the same property ownership rights as Turkish citizens. The reciprocity clause also must be met for foreign nationals to purchase property in Turkey. The clause states citizens of countries whose governments allow Turkish nationals to purchase real estate in their country are allowed to purchase real estate in Turkey. Most Western countries meet this standard. Also, there are no restrictions on selling and reselling, so recently bought property can quickly be sold.
The Turkish property market is emerging rapidly and offers the investor a variety of possibilities to maximize gains on property investments. Property prices in Turkey are dependent upon where the property is located, the type of material used in construction and the property’s architectural elements. Other value-determining aspects include how easy it is to reach the property, its proximity to an airport, the region’s economic activities and availability of nearby services.
There are some restrictions on where foreign nationals may purchase property in Turkey. They may not purchase property in Turkey’s strategic military and security zones. Foreigners are also not allowed to own property outside the center of a village because in case the area has not been available for purchase or it may belong to the Ministry of Forest. Clearance from military authorities can take 6-12 weeks to process.
Along with the price of the property, several other legal fees must be taken into account when purchasing property in Turkey. First, there is a 10 percent deposit to be paid to reserve a property. Then the real estate agency fee is fixed rate at 3 percent of the purchase price from the buyer. There are also fees to be paid to the legal notary, to a sworn translator and for photographs. Additionally, there are purchase and land registration fees, as well as compulsory earthquake insurance. Finally, a 1.5 percent duty both for the purchaser and seller must be paid. In addition, there is an annual property tax, collected by the local government at the rate of 0.1 percent for houses and 0.3 percent for developed lands.
Turkey’s impending EU membership provides growth potential that will certainly boost the prices of real estate there in the future. Buying property now can lead to gains as property prices there continue to increase. The property prices in Turkey are significantly lower than other European destinations and still at value prices. Taxes are comparatively low in the country, as well. Property investment experts Amberlamb rated Turkey’s property sector as one of the top five expected European market performers in capital terms of capital appreciation in 2007. Both residential and vacation properties are available and profitable purchases for foreign nationals in Turkey. Additionally, housing availability trails demand in the country. Since Turkish parliament ratified a law in January 2006 allowing foreign nationals to purchase property, foreign nationals are afforded the same property ownership rights as Turkish citizens. The reciprocity clause also must be met for foreign nationals to purchase property in Turkey. The clause states citizens of countries whose governments allow Turkish nationals to purchase real estate in their country are allowed to purchase real estate in Turkey. Most Western countries meet this standard. Also, there are no restrictions on selling and reselling, so recently bought property can quickly be sold.
The Turkish property market is emerging rapidly and offers the investor a variety of possibilities to maximize gains on property investments. Property prices in Turkey are dependent upon where the property is located, the type of material used in construction and the property’s architectural elements. Other value-determining aspects include how easy it is to reach the property, its proximity to an airport, the region’s economic activities and availability of nearby services.
There are some restrictions on where foreign nationals may purchase property in Turkey. They may not purchase property in Turkey’s strategic military and security zones. Foreigners are also not allowed to own property outside the center of a village because in case the area has not been available for purchase or it may belong to the Ministry of Forest. Clearance from military authorities can take 6-12 weeks to process.
Along with the price of the property, several other legal fees must be taken into account when purchasing property in Turkey. First, there is a 10 percent deposit to be paid to reserve a property. Then the real estate agency fee is fixed rate at 3 percent of the purchase price from the buyer. There are also fees to be paid to the legal notary, to a sworn translator and for photographs. Additionally, there are purchase and land registration fees, as well as compulsory earthquake insurance. Finally, a 1.5 percent duty both for the purchaser and seller must be paid. In addition, there is an annual property tax, collected by the local government at the rate of 0.1 percent for houses and 0.3 percent for developed lands.
