A prime cost of housing is one of the parts which form the property price. To calculate construction cost, the estimated value adjustment index is used. This index includes labour and material payments.
These both indicators grew in the first quarters of 2016 in Turkey:
- labour payments - by 4.4 % and 4.1%;
- material payments - by 3.0% and 1.5%;
The annual growth rate of these indicators became 12.1% and 4.7% respectively.
As the result property construction becomes more expensive: and it means that the Turkish property also increases in price. The Turkish real estate market is still attractive for locals as well as non-residents despite high price growth rates.
The fact that Turkey is leading in increasing property prices is illustrated by the statistics of the previous year (+18%) and the first quarter of 2016 (15.3%). A slight slowdown in the growth rate is caused by objective reasons and it is not something you should worry about. Experts predict future Turkey's property price increase which will be caused by the growing demand for housing options and level of housing construction, higher inflation (8% this year) and other economic factors.
To be or not to be: business in Turkey
In order to attract foreign investments, the Turkish government offers convenient conditions for non-residents. It concerns almost any question - from buying a villa in Turkey to opening your own beauty salon.
The most popular directions in Turkey are tourism, construction and commercial business. Opening of business and its management is regulated by law No. 4875 about foreign direct investments. Local legislation is the first thing you should start with if you want to open your business in this county. You should also find a translator and accountant who will help you with Turkish tax legislation.
It is worth noting that foreign company founders have the same rights as local businessmen. And sometimes, for example in case of income tax, they even have benefits. As for forms of business organizations, non-residents very often found private limited companies (Ltd. Şti.) or joint stock companies (A.Ş.). Besides, you can open a branch or a representative office of a foreign company, cooperative, private, general or limited partnership. When opening your company, you will need to have some legal advice, or support of a qualified specialist, because there are a lot of nuances in establishing and managing the business.
Nowadays it is rather profitable to launch your business in Turkey. You can buy commercial property at affordable prices because of a slight decrease of property price growth rate.
6 tips on how to buy property in Turkey
The Turkish real estate market is full of property offers. On the one hand such great variety provides a wide choice, on the other hand it makes rather difficult to choose the right one. How to choose the housing option to make a profitable investment and get a property in Turkey that will meet you price expectations? We hope our tips will help you to learn about the real estate market in Turkey.
- Make a precise list of your property requirements and specify a purchase budget. If you want a pool, you should better buy a villa. If you have a limited budget, and you buy a house for your family, then you should consider secondary housing. If you are only going to spend holidays there, you can buy a small apartment.
- Whatever budget you have, do not save. Overseas property is always in demand, especially of good quality and with favourable location.
- Pay attention to documents. Do not save on realtor services. They ensure the legitimacy of the transaction saving your money and avoiding any risks.
- Learn about the Turkish property market, assess prospects for the economic development of the region and the country.
- Discuss any question with a specialist: lawyers, translators, accountants, management companies, realtors. Seek independent advice to get the entire transaction overview and make right decision.
- If you have an opportunity to facilitate the payment, use it. The prices of secondary housing are rather lower and you can bargain as well, if you are looking for new housing, you can get a mortgage or buy in installment.
How to rent out your property in Alanya
Getting profit from renting out your housing is a great option to receive additional income. But how can you find tenants, tell them about your offer? Realtors who deal with renting out apartments in Alanya (Turkey) advise to make a unique offer which will differ from plenty of other similar offers.
What should you remember when renting out an apartment?
- If you are only planning to start this business, you should first buy high-quality housing, so that there would be demand for it. You should consider everything - from layout to the distance from the airport.
- If you already have a property, you should define your potential customers: young people, married couples, older couples with grandchildren, businessmen and others. It will help you to select the right way to offer your property.
- Try to make your housing unique. It can be exclusive interior, furniture and etc. It will help you to highlight your offer and increase the rent.
- Present your apartment or house to your target audience. Take pictures of your housing. They should be of good quality and show advantages and special features of your home.
- Use the Internet to promote your offer. It is better to post information on several real estate websites.
And Multivilla specialists offer the easiest and quickest way to rent out your housing. Just contact our company and your advertisement will be posted on our website. Other questions can be discussed during the personal contact.