What Criteria Do Foreigners Prefer When Investing In Real Estate In Turkey?
In this article, we talk about the most important observations of the people who were interviewed about their satisfaction with the process of ownership and investment in Turkey.
The study included research into the real estate investment register of hundreds of foreign investors (from 48 countries around the world) who purchased homes in 12 cities in Turkey. The research included the gratitude of investors for buying the property from Turkey, as well as the criteria and priorities that investors of various foreign nationalities are interested in when buying a property from Turkey.
Foreign investors: very grateful for the purchase of the property, Turkey
According to the data of the mentioned report, all the investors surveyed are very satisfied and grateful to have acquired a property in Turkey. According to the findings of the report, foreigners were grateful for their investment in real estate in Turkey: 83.2%.
This proportion varied depending on the nationalities of foreign investors, with Algerian investors ranking among the most grateful foreign nationals buying a property in Turkey at 95.8%. They are followed by the second-ranked Russians with a gratitude rate of 92.6%, the third-ranked Germans with a 92% ranking, and the most grateful foreign citizens from real estate investment in Turkey were:
In a comment on the results of the study on the satisfaction and gratitude of foreign real estate investors, Mr. Omer Faruk Akbal, President of the Association for Offshore Real Estate Promotion, stated:
“83.2% of public gratitude for investing in Turkey's real estate is very good, and 70.2% of investors want to buy back property in Turkey. This indicates the effectiveness of strategies for promoting foreign markets. There is no doubt that the quality of construction in Turkey, which meets the wishes and aspirations of investors, and its cultural climate, which suits most different cultures, in addition to its sophisticated service and health system, plays a significant role in increasing the demand of foreign investors for investment in the Turkish real estate sector".
Would you like to buy an apartment in Turkey again?
“Do you plan to buy another house in Turkey in the coming period? " It is one of the questionnaire questions posed to the foreign investors examined in the study. According to the classification of respondents to this question as "yes" according to the States to which they belong: Jordanians ranked first with 72.4%. They were followed by Algerians in second place with 66.7% and Iraqis in third place with 51.4%. The top five rankings were as shown in the table below:
The proportion of people who want to buy another house in Turkey
For those who have not made a positive or negative decision to answer this question, the breakdown by State to which they belong is as follows:
The proportion of people who have not made a firm decision to buy another home in Turkey
Criteria and priorities for foreigners in the procurement of property
According to the same study, the price of the property ranked first among the factors affecting the procurement process, with 63.4% of the investors surveyed being among the top priorities. The location of the property was ranked second, with 58.3% of investors in the top priority, according to 36% of investors, the view ranked third. The ranking of the five most influential factors in the acquisition of the property is as follows:
The proportion of investors who consider it the most important
Price of the property
Location of the property
The building features
As for the classification of foreign nationalities surveyed according to the criteria affecting the decision to purchase the property, 83% of the British were granted. 62% of Jordanians gave priority to the location of the property, while 61.5% of Saudis gave priority to the appearance of the property. Priority was given to the price of the property for 75.7% of Iraqis, 68% of Germans, 54.2% of Algerians, 61.5% of Iranians, while 51.9% of Russians gave importance to both the location and price.
Commenting on these figures, Mr. Omer Faruk Akbal said: "There is no doubt that the price of the property is of great importance for many countries. But this cannot be generalized. The British or Jordanian preference for the location of the property, and the Saudis for its appearance, have important connotations".
Following the competition of the Turkish real estate market, he told his global counterpart: "The Turkish market is a strong competitor in terms of price. Whereas the average price per square meter in Istanbultoday is about 450 euros, in Europe it is about 2-4 thousand euros. Proper marketing and expansion will undoubtedly have a significant impact on strengthening Turkey's role as a competitor in the global real estate market".
77.8% Russians and 84% Germans preferred Turkey because of its climate, 50% Algerians because of its religious, social and cultural characteristics, and 66.7% British as a place of safe and stable living.
Why do foreign investors prefer Turkey's real estate?
According to data from the above-mentioned report, Climate ranked first among the most favored factors for which foreign investors favored Turkey, by 53.2% of surveyed investors.
The second rank was factors of culture, social structure, and religious tolerance, by 48% of the investors surveyed. Safe and stable living, by 39.8%, ranked third. In fourth place, Turkey is an appropriate option for a holiday at an acceptable cost, according to 34.9% of those surveyed. Hospitality ranked fifth as it was preferred by 30.7% of those surveyed.
The answer to the question is: "Why do you prefer Turkey?" 71.8% of Saudis responded "because it has a better climate than others," and 70.3% of Iraqis said because living in it is safer and more stable, "and 55.2 percent of Jordanians and 53.8 percent of Iranians said," because it's better than the country where I live economically".
For more, we recommend reading our article on investing in Turkey: Features and the most important fields.
What problems did foreign investors have when investing in real estate in Turkey?
In a question about the problems faced by real estate investors after buying a property in Turkey, she responded: "Non-delivery of projects in time" ranked first at 77.4%, it was followed by an answer: "Misinterpretation" 36.6%. Then answer: "Problems with the management of the housing complex" were followed by 30.1%, followed by answers to 16.1% problems with water, electricity and gas, and 14% problems with the subject of Turkish citizenship.
What are the most important qualities and words that foreigners know Turkey?
In answering a question about foreign investors' impression of Turkey, the first was to describe it as: "Beautiful country," where 49% of respondents were investors who saw Turkey as a beautiful country. "Islam" ranked second, with 28.2% of the investors participating in this questionnaire choosing it. Other traits that have emerged include: "History of Turkey," where 6.1% of participants stated, culture, religious convergence, work and investment, fine holidays and tourism were present in some answers.
Some participants also stated that felt Turkey was like their second home.
Despite the global Coronavirus epidemic, which has hit all sectors of the world's business, real estate investment has maintained its continued demand, as real estate investment is a haven and a safe haven for those seeking certain profit opportunities. The demand for real estate in its forms, and its diverse size, remains urgent despite all the occasional circumstances; the steady increase in population requires new buildings to keep pace with the permanent need for accommodation, work, education, care, recreation and the practice of various types of human activities.
Since real estate investment in Turkey is one of the most prominent in the Middle East, in terms of maintaining high safety rates in the infusion of funds in Turkey.
Urgent questions abound from those who wish to buy a property in Turkey; they are motivated by the investment benefits of the Turkish real estate investment sector, the willingness to take advantage of facilities and the incentives provided by the Turkish government authorities to Turkish real estate investors. These include the granting of Turkish citizenship to those who buy property worth at least $ 250 000 and the granting of real estate accommodation to those who invest in less than this amount.
Since many of those who want to buy and invest in property are confused and obsessed with taking this step, especially at the stage of choosing the right property, here’s this article.
If the investor intends to purchase a property in Turkey, he/she shall take several steps, which, if strictly implemented, will make the real estate purchase process highly secure, a risk that may normally occur at the earliest stage of real estate ownership. In particular, if a person is willing to buy from outside the country in which he is to be bought - and the word here is about Turkey - the real estate company, therefore, outlines to you those steps that must be invoked when making the purchase:
Identify the target behind the purchase of the property, respond accurately and clearly to the question: Is the property intended for housing or investment?
It is essential to know the purpose of the purchase of the property because the Turkish property market is described as a large, multi-item market; the options are many, and vary according to the purpose of ownership.
Ensure that the property to be purchased is in a vital position and appropriate to the intended target.
It is important to mention here that there are two types of buildings: under construction and ready.
If the building is still under construction, two things should be done:
Ensuring there's a regular building permit.
Whether the construction-based company has a good reputation for real estate construction in terms of quality and the obligation to deliver buildings at specified times.
In the second case, the construction is ready, the ownership of the property must be verified from the Tapu dairesi, where care must be taken so that the property is not dependent on anyone and is free of any legal problems.
The property must be seen on the ground, as it is likely that the information obtained through the ads is inaccurate, or that it does not match the property's specifications as they are.
Knowledge of the whole area of the estate, because there is a difference in estimating the size of buildings in Turkey between the total area: These include parks, drawers, elevators, and other facilities. Net area: which is the separate space from other buildings as a house, or shop, of what the landlord uses alone without sharing with other building occupants.
Remarkably, the difference between the two total spaces, and the net, in Turkey maybe 35%.
Which is better: Buying a property in the countryside or in the city center?
To answer this question, it should be noted that the real estate market, under which all properties are located, whether in the countryside or in the city, is divided into 3 main sections:
Central areas of cities: The high demand is for business investment, owing to the concentration of business activities, subsidiaries, large enterprises and government services, and the fact that prices in city centers are constantly rising, and are still very high.
Peri-urban areas: They are suburbs, neighborhoods that were predominantly rural and have been expanded and covered by urban regulatory schemes, and remain in the eyes of investors as services increase; Because their real estate prices are initially cheap, and then they go up as they turn into older, densely populated areas.
Rural areas: The direction of investors is to purchase land for agricultural investment, to own farms, or to grow for quiet housing and recreation.
Recent growth in investment in rural areas has been noted, which has encouraged investors to establish apartment blocks, divide the land and prepare it for construction, and then offer it to those wishing to build their own homes.
Which is more lucrative: Buying a property in the countryside or in the city center?
The exact answer to the question is: How is the property chosen in relation to where it is in the city or in the countryside? Which is more lucrative? To the person willing to buy, to measure the usefulness of buying it in the countryside, or the city, given the desired goal of buying, and not to neglect the huge disparity between rural and urban properties prices.
Let us represent this disparity in prices, and according to the land zoning we mentioned in the previous paragraph, as an example of the big cities in Istanbul, we say:
For the first region, which is the heart, the center of big cities: If an investor wants to buy into a tower and shopping mall located in areas such as Sisli, Mecidiyekoy a room and lounge property, it will be difficult to find such property for less than $350,000.
For the same or a little more amount, an apartment with 4 rooms and a lounge could be purchased in the second zone, located on the outskirts of Istanbul, and its newly emerging environs.
With the same amount or a small increase on it, a small villa, or farm, can be acquired within 2,000 square lands in the countryside of the European side of Istanbul.
How did the Coronavirus pandemic affect the property selection process?
The Coronavirus has had a significant and visible impact on the real estate selection process in Turkey. The compass for measuring real estate demand points to a growing demand from real estate investors to move to rural Turkey, from demand to invest in central and commercial areas in major cities before the Coronavirus crisis. It has been noted that investors are turning their attention to the rural areas of European Istanbul, such as Silivri, Catalca, Arnavutkoy, and to areas such as Sile in the Asian section; there has also been a marked increase in the demand for real estate in small towns with expanding countryside, such as Kocaeli, Yaloca, Izmit, Sabanca, Sakarya and others.
This shift from city-to-countryside real estate investment during the Coronavirus epidemic is due to people seeking to move away from urban congestion, which is usually a symptom of constant intermingling. Hence the possibility of greater transmission and spread of infection, which has led them to aim for open areas in rural areas with green spaces, in search of an atmosphere that ensures the greatest possible degree of application of healthy social separation rules.
How does Imtilak Real Estate help you choose the right property?
Imtilak Real Estate is fully prepared to accompany those who wish to own a property in the best investment areas of Turkey during all stages of the purchase and sale transaction. Providing important advice to them in accordance with the intended purpose of the purchase, In conclusion, we refer to some of the necessary recommendations:
Not until the end of the Coronavirus pandemic, to postpone the purchase of the property, which is the result of our monitoring of the dramatic increase in real estate prices in 2020. This resulted in investors who postponed the purchase losing profits that could have been earned if they had not deferred the purchase.
Keeping track of the real estate index, studying which direction the demand for real estate in Turkey is trending.
We also recommend looking for offers to sell real estate in rural Turkey close to the city centers, which are much lower than those of the former and the latter in latter; Note, however, that some rural areas in Istanbul are only one hour's drive away from major city centers, in addition to all services and basic needs.