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August increase - how the situation in Turkey's property market changed

August increase - how the situation in Turkey's property market changed

In August experts observed a revival in the Turkish property market after unsuccessful July. The number of property sales increased by 41% in August. The total number of sales became 114 751 homes. This number is even higher than the previous year by 2%.

Top-3 of most popular provinces remained the same. The leader is Istanbul, 15.3% of properties (17 503 homes) were sold there. Istanbul is followed by Ankara with 10.7% or 12 300 homes. The third most popular destination became Izmir. 5.6% homes were sold there in August, which is 6 419 properties.

The third part of buyers used mortgages to buy housing. The statistics of property sales in the secondary and primary housing market also didn't undergo changes: the number of secondary housing is a bit higher, and the share of new housing was 53 784 homes (46.8%).

Foreign buyers kept their interest in Turkey's housing in August as well. As a result they bought 1512 properties. The rating of sales for foreigners was headed by Istanbul (390 homes), the second placed went to Antalya (370 homes) and the third place was occupied by Bursa (111 homes).

In terms of nationalities, the rating is the following: the most interest in Turkey's housing was shown by Iraqis (267 homes). They were followed by Saudis (173 homes) and Kuwaitis (155 homes). Russians occupied the fourth place in the rating. 117 people preferred to buy a cheap home in Turkey by the sea. The fifth place went to Afghans. They bought 75 houses.

Antalya will be able to accommodate large cruise liners

Turkey is a maritime country, it is washed by 4 seas. Tourists are interested in Turkish properties for sale and businessmen count on cruise tourism development. There are a lot of port cities in Turkey, the biggest ones are Gemlik, Izmir and Istanbul. Other large ports are located in Ambarli, Izmit, Iskenderun, and Mersin. In the nearest future a new port will be constructed in Antalya in the western part of the Lara beach.

The mayor of Antalya Menderes Türel reported about this large project. Now the project is in the initial stage of construction. So an embankment is being constructed where they will build a harbour.

You can imagine the size of the harbour considering its technical characteristics: the port will be able to accommodate one 150-meter and four 100-meter vessels or two 345-meter cruise liners at the same time. There also will be an anchorage facility for 426 yachts.

Investors expect to get large profit as the new modern port which meets all requirements will help to develop cruise tourism.

Mortgage to buy housing in Turkey

If you have decided to buy an apartment in Turkey by the sea, but the prices are higher than you expected, you should not worry. You can always find a way out, especially if it is the Turkish housing market. The country, the government and banks, is interested in receiving foreign investments. Buying housing in Turkey is also an investment, therefore foreign buyers are offered favourable conditions including low price and payment terms.

One of the ways to find a necessary sum of money is to get a mortgage loan. In Turkey there are a lot of banks that offer mortgage service, the only thing you should do is to compare their conditions and to choose the one that suits you most. Besides, if you work with a real estate agency, they will offer to contact their partner bank.

You are to do the following:

  • visit a bank office, where you want to get a mortgage to discuss and choose mortgage terms;
  • an appraiser visits the property option to assess it;
  • after the bank informs of mortgage approval, you will be given letters of guarantee needed to gather the necessary documents;
  • you will have to pay a small fee to get these letters;
  • gathering and registration of documents. Usually a standard document package includes: permit for purchase of real estate issued by the Ministry of Internal affairs, property commissioning certificate (Iskan Ruhsati), natural disaster insurance (DASK), the taxpayer identification number, a Turkish bank reference. You can also be asked to provide the following: tax clearance certificate, copies of TAPU, passport, salary certificate, etc.

Very often the mortgage is given for sum not exceeding 50-60% of the estimated value for the period of 5-15 years. The maximum monthly payment can't exceed 50%.

How to rent out your property in Turkey efficiently

Theoretically, the income from renting a villa in Turkey can be compared or even exceed income from a bank deposit. There are probably people who really get such large income, because the housing market in Turkey is rather big and a lot of foreigners buy housing in this country in order to get profit.

And does property rent always give such high results? What should you know to rent your housing profitably?

Before buying an apartment or a house, you should decide what type of rent is better for you:

  • daily rent — high return from tourists only during high season, can be rather risky;
  • long-term rent — stable income all year round, less risky.

You should keep in mind that certain areas are better for certain type of rent. For example, Alanya and Antalya are perfect for long-term rent, and Avsallar is better for short-term rent. Also the type of rent depends on the facilities in this area. So, a tourist will better rent a property close to the sea, amusement facilities and parking. The type of housing and even furniture can play significant role when renting it out.

In addition, when calculating the future income, you should remember about current costs for housing maintenance as well: rental income taxes, additional costs including force majeure. According to J&I Rebel expertise, the average yield in Turkey from leasing housing is 5.05%.

And finally, you should think over how you will find tenants. Some agencies offer assistance in finding tenants. Want to lease your housing? Contact Multivilla.

60 Turkey's cultural monuments are included in the list of world heritage of UNESCO

According to Hüseyin Avni Botsalı, a permanent representative of Turkey in UNESCO, the republic is one of the leading countries for the number of World Heritage sites. Today there are 60 sites. And at the 40th session of the Committee which will be held in Paris between 24-26 October, this list will be added with at least 10 new ones. The candidates include Lake Van (the province of Van), Lake Tuz (Konya), and the delta of the Kizilirmak River with a bird sanctuary (Samsun), the castle of St.Peter (Mugla), the Yivli Minaret Mosque (Antalya) and others.

Before the session a national commission together with the UNESCO's Secretariat for Africa and the Adjacent Island States will visit Turkey. Their goal will be to develop and strengthen a system to share experiences with Turkey and protect the country's heritage. It was stated that Turkey had provided 5 million dollars for supporting UNESCO. According to the head of the Turkish National Commission for UNESCO Öcal Oğuz, firm positions of Turkey in UNESCO are necessary to build peace, develop intercultural dialogue and tourism as well as efforts of the government aimed at simplifying the process of buying property in Turkey.

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